InnovaDerma PLC (LON:IDP) ended the financial year trading in line with expectations as it said it identified “goodwill and other balance sheet write-downs that will require non-cash prior year adjustments”.
The maker of the Skinny Tan range generated revenues for the 12 months to June 30 of GBP10.2mln, while the underlying loss was GBP900,000 before accounting charges or GBP1.5mln.
The direct-to-consumer operation saw a marked seasonal improvement in the second half.
This was a “satisfactory performance given the challenges we have faced”, the beauty and personal care company told investors.
In a comprehensive update, the group reported a seven-percentage point improvement in its gross margins and said it was sitting on cash of GBP2.2mln at the period end.
It added it had “more than sufficient working capital to return the business to profitability”.
An in-depth review of the balance sheet (allied to a change of accounting policy) identified write-downs and adjustments to the 2020 accounts totalling GBP8.9mln. These are non-cash items.
“Our strategic review, as announced in our interim results, highlighted that important measures needed to be taken to improve the financial and structural foundations of the company in order to move forward and generate profitable and sustainable growth,” said chief executive Blake Hughes.
“These actions have and continue to take place and it is pleasing to see our strategy has already delivered a strong improvement in gross margin.”