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Jan 02, 2018

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MARKET REPORT: Online clothing retailer Koovs falls out of fashion as shares dive 42.6% after sales warning

Shares have slumped 91 per cent since it first listed on the London Stock Exchange in 2014, while Asos is up more than 26,000 per cent since first listing in 2000. Koovs said its trading has been hit by the introduction of Goods and Services Tax, heavy discounting and marketing spend by rivals Amazon and Flipkart as well as India’s decision to remove certain bank notes from circulation last November. The measure heavily hit online sales at Koovs since shoppers in India often pay in cash after their products are delivered. Coal explorer Altona Energy fell after it revealed it had sunk to a full-year loss. The Australia-focused firm posted a £341,000 loss in the year to the end of June, from a profit of £26,000 the year before, due to the reversal of a tax provision. It did not generate sales in either year.  It plans on shifting strategy and only explore areas it believes has a high probability of delivering suitable coal deposits. Shareholders were less optimistic. Shares fell 9.1 per cent, or 0.05p, to 0.5p. Yesterday Koovs reported a slight dip in sales in the six months to the end of September at £3.9million from £4million while losses narrowed to £7.8million from £9.1million. The FTSE 100 finished 7.1 points higher, or 0.1 per cent, to 7,544.1 points, while the FTSE 250 finished up 86.1 points higher, or 0.4 per cent, to 20,341.5 points, thanks in part to Hikma Pharmaceuticals which soared after agreeing a licencing deal with a South Korean rival As part of the deal with Celltrion, Hikma will have the exclusive rights to market and distribute the biopharmaceutical firm’s Truxima drug in its Middle East and North African markets.

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