Parsley Box cut its losses in the first five months of this year but revenue growth remains stalled as order volumes have failed to rebound.
The Edinburgh-based company, which delivers ready meals to older customers, lowered its full-year guidance in a trading update yesterday that highlighted the challenging inflationary circumstances facing consumers. As a result, sales during the five months to the end of May were 11 per cent below management expectations.
“The current macroeconomic environment is…presenting challenges and therefore we are taking a prudent view for the remainder of the year and we now expect revenue to be in the region of £22.5 million,” the company said.
Losses during the five months fell by about 44% compared to the same period a year earlier and Parsley Box is anticipating a similar reduction in the adjusted loss for the full year, which it expects will be in the region of £4m.
READ MORE: Parsley Box chief prepared for shift from famine to feast
Despite weak volumes, average order values grew at a double-digit rate. Parsley Box said it remains focused on improving returns from its marketing spend to win back lapsed customers and acquire new ones.
Jo Coomber, formerly of the National Galleries of Scotland, joins this month as marketing director and will lead on those efforts. The company is also expanding its food range and is launching a new gift range curated for the over-65s market.
Chief executive Kevin Dorren said Parsley Box is in a financially sound position following a fundraising in March that raised £6.1m, short of its £7m target.
“We remain well-funded and confident that our product innovation, recommenced targeted marketing strategies and strong cash position will enable us to retain and grow our customer base in our over-65 target market, and return the group to sales growth in the second half of the year,” he said.
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