Ethical etailer Adili has warned that full year EBITDA will come in below expectations, after investment in a new web platform and increased discounting dented margins.
Sales rose 56% to £550,000 for the year to April 30, but the company said EBITDA would be marginally lower than market expectations.
Adili said it remained debt-free but that it continued to see working capital funds that would be required for by July to help it towards a breakeven and then profitable position. An interim fundraising in April raised £350,000 to fund short term working capital requirements.
Adili said the launch of its new website in November last year represented a significant stepping stone for the future growth of the business, and that it continued to invest in both of its own labels, Adili and Ascension, to improve overall margins and control of supply chains.
Adili chairman Nick Samuel said: “I am pleased to report another year of considerable progress for Adili. Current trading remains buoyant and sales growth, despite the present economic conditions, is accelerating as internet shopping and the ethical market continues to gain popularity.”