EBTM reported its interim figures after the market closed on 30 January 2009.
The online music fashion retailer had to report its interim figures before trading starts on 2 February or else the shares would have been suspended. Prior to the announcement, shares in EBTM recovered 0.06p to 0.19p a share, which values EBTM at £660,000.
Revenues slumped by 49% to £1.84m in the six months to October 2008. That was mainly down to the weak wholesale business and the absence of a large one-off order. The Lowlife brand has been sold at a loss of £25,000. A profit of £157,000 was turned into a loss of £920,000. That loss was struck after reorganisation costs of £271,000 and other non-recurring costs of £138,000.
Annualised costs have been cut by £600,000 but trading needs to improve in order for EBTM to reach break even.
The number of unique visitors was down slightly to 1.4m but the average conversion rate increased to 1.85%. The average amount spent fell from £37 to £33. Christmas sales were well below expectations. December 2008 sales fell by one-third.
Net debt was £1.1m at the end of October 2008. EBTM raised £850,000 at 1p a share in November 2008.
Trading remains difficult and there is no new news about the potential disposal of the business.
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