The Core Business strengthens further according to Preliminary
results
The Core Business: Preliminary Results - Half Year ended 30 November
2008
The Core Business PLC, ('the Company') the innovative beauty brand
business, announced its preliminary results for the half year to 30
November 2008 last week.
Growing sales by over 55% to £1,506,000 the Company has performed
well in the half year period despite the downturn in consumer
spending. With its cosmetics, skincare and beauty accessories brands
and its penetration in volume mass and mid retail distribution
channels, The Core Business believes it is well placed to take
advantage of consumers trading down and seeking high quality
value-for-money products. Its also believes that the "lipstick
factor" where consumers unable to afford high ticket items spoil
themselves on small low cost indulgent products such as lipsticks
will keep the beauty business reasonably resilient to the effects of
recession.
In addition the business has recently strengthened its Board
following the appointments of Matt Cooper as Non-Executive Chairman
and Muriel Zingraff as Non-Executive Director.
Chief Executive Stirling Murray said:
"The business operates in a highly dynamic fast changing market where
"newness" is vital. The Core Business has a strategic objective of
delivering 35% of sales from products or brands that are newly
launched and were unavailable in the previous year. For the half year
period new brands have accounted for 36% of sales. This strategy
requires a strong focus on new product development and continual
critical assessment of new brand distribution opportunities. This
takes a high proportion of management time but will be worthwhile as
we seek to build critical mass in revenue and profitability."
HIGHLIGHTS
* Revenue for the half year increased by approximately 55%
to £1,506,000 versus £972,000 for the corresponding half year
period last year.
* Reduced loss for the half year of £76,000 (six months to
30 November 2007: £143,000 loss).
* The Company's focus on distributing brands into major
retailers and creating and owning its own brands has had a
significant effect on revenues. Bloom colour cosmetics, a
distributed brand under a five year exclusive UK agreement launched
in September 2008 and generated sales of £458,000 in the half year
period. Grace Your Face, an innovative wholly owned skin care
solutions brand launched in June and delivered sales of just below
£100,000 for the period.
* Elite Models Beauty accessories - sold in Superdrug and
Tesco stores - delivered sales of £178,000 for the period, an
increase of 1.4%.
* Consultancy contracts delivered revenues of £54,000, an
increase of £15,000 on the corresponding half year period last
year, but in line with the Company's strategy of focussing on
distributing and owning brands.
The full preliminary announcement can be viewed at:
http://www.thecorebusiness.co.uk/data.asp
For further information, please contact:
The Core Business
PLC
www.thecorebusiness.co.uk
Stirling Murray, Chief Executive
020 8559 8244
Alastair Kennedy, Finance
Director 020 8559 8244
Notes to Editors
The Core Business was established in May 2004 by Stirling Murray to
create, develop, launch and distribute personal care and beauty
brands. It also provides consultancy and brand management services.
The Company was listed on AIM in March 2006 under the ticker 'CORE.'
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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