Ethical etailer Adili expects losses to widen to £1.4 million for the year after its was hit by increased markdowns and investment in the acquisition of ethical fashion brand Ascension.
Adili, which was founded in September 2006, expects sales to reach £365,000 for the year which is broadly in line with market expectations. The ethical etailer said that sales were likely to be up in excess of 250% for the second half of 2008 against the same period in 2007.
However losses, which were expected to be in the region of £1m, have increased to £1.4m partly because of increased investment in the business but also as a result of a reduction in gross margin as a result of stock clearance.
Adili said it had rescued Ascension after its parent company became insolvent and that the deal was done at a substantial discount to the original cost. Ascension is one of Adili's best selling brands and will now be managed by the Adili own label team. The company said Ascension provided a "strategically important entry price point for Adili".
The board is expected to announce its preliminary results in July.