Adili, the ethical retailer has said that sales have dropped below expectations since undergoing a fundraising in August.
Adili said it had suffered from its change of trading name to Ascension earlier in the year and the later-than-planned openings of its first retail stores, which had been delayed due to the fundraising.
Adili’s board expects that it will need to find a modest amount of new working capital in February or March next year and, although it hopes to do so without recourse to shareholders, it said it could not rule out that option at this stage.
Adili added that it had seen an acceleration of growth on its website and in stores and that its rebranding had been well received by customers.
It added that its new retail stores, one in London’s St Christopher’s Place and a clearance store in Dorchester, have traded above target. It said its clearance store would also help to reduce the need for significant stock write-offs.
In its full year to April 30, Adili’s sales were up 56% to £552,000. Pre-tax losses widened for the business to £1.9m from £1.5m the year before.