Wake up to eve Sleep! eve Sleep (EVE) – 5.35p

Wake up to eve Sleep! eve Sleep (EVE) – 5.35p

Investors looking for a penny share which looks to have significant potential for growth in the short to medium term could do worse than take a look at the bedding group eve Sleep.  The company describes itself as a sleep wellness brand, but essentially it is a supplier of bedding products.  These include mattresses and bedding, such as pillows, bed linen and duvets as well as related products such as bed frames and bedroom furniture.

The company operates in the UK, Ireland and France, selling its products online as a direct-to-customer business.  The business continues to expand the range of products it offers such as mattresses and bedframes, whilst in the second half of 2020 it launched its first ever gifting range of sleep wellness products in conjunction with Boots.  The range was launched online, as well as in almost 450 Boots stores, and includes candles, diffusers, hot water bottles and even pyjamas.    

The company has had a chequered history since being founded in 2015.  It joined AIM in May 2017 through a placing at 101p per share and although initially the shares did well, rising to 130p later that year, it was not long before things began to go wrong.  The share price fell back significantly, and the company decided that it had to change its strategy.  The company is now beginning to see the benefits of this with the results for 2020 showing sales increasing, losses falling and cash flow being neutral for the first time.  This meant that the company ended 2020 with net cash balances of £8.4m, not bad for a company valued at just £14.6m.

In the year to 31 December 2020, revenues at the company rose 6% to £25.2m and the underlying EBITDA loss declined to £2.0m from £10,9m the year before.  Net cash at the year-end had risen by £0.4m from a year earlier to £8.4m.  The company was also pleased to report that according to Which? it could boast the two best mattresses in the UK, with 3 of the top 5 in its range.  The group has improved its websites, moving to the Shopify platform, restructured its warehousing and distribution system to improve efficiency and maintained its marketing programme including advertising on Channel 4.  

The first two months of 2021 have seen sales continue to increase with revenues up by 16% and this should help the company steadily move towards profitability.  Two directors have recently bought shares at 5.7p per share and given the strong balance sheet there is scope for a good rise in the share price.  It spiked to a high of around 9p during trading in February and we rate the shares as a BUY.


RECENT TIPS – The highs and the lows


For a flavour of our performance recently, we list below some of our recommendations that we have made in the last week or so: 


HSS Hire – 19.6p at close on 6 April (tipped at 16.85p on 31 March) – gain of 16%.  

*Investors realise the stock is too cheap


Gfinity – 4.59p at close on 6 April (tipped at 3.8p on 29 March) – gain of 21%.  

*Further consideration of interim results 


Logistics Development Group – 13.35p at close on 6 April (tipped at 14.875p on 30 March) – a loss of 10%. 

*Share price fall due to lack of positive news on company’s future plans  


To read about some of our other recent top performing share tips, head to https://www.cityconfidential.co.uk/recent-top-share-tips 

Brought to you by City Confidential


All research on the website has been prepared and issued by cityconfidential for publication in the United Kingdom. All information used in the publication of this research, has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness. Opinions contained in this research represent those of the research department of brokerlink at the time of publication. The research on this website is intended for professional advisors in the United Kingdom for use in their role as advisors. It is not intended for private individuals or investors. This is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Research is provided for information purposes only and should not be construed as an offer or solicitation for investment. This research is non-objective. cityconfidential does not conduct investment business and as such does not hold any positions in the securities mentioned in this report. However its directors, officers, employees and contractors may have a position in any or related securities. cityconfidential may perform services or solicit business from any of the companies mentioned in this research. The value of securities mentioned can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this research. Past performance is not necessarily a guide to future performance.

cityconfidential is owned by Independent Financial Publications, which is authorised and regulated by the Financial Services Authority.

No Comments

Post a Comment