Parsley Box eyes recovery after supply woes
Parsley Box, the Edinburghbased meal delivery firm which floated on the stock market last year, said it had “stabilised and improved the business significantly” after overcoming crippling supply chain issues.
Thefirm,whosesharesbegan trading on London’s Alternative Investment Market (Aim) just over a year ago, delivers ready meals that do not need to be stored in a fridge or freezer, direct to the “underserved baby boomer-plus consumer”, broadly defined as those aged 60 and over.
Towards the end of last year, the firm warned investors that it had been hit by labour issues throughout its supply chain, severely knocking its growth plans.
Ithassincebeenbusyrebuilding stock levels, rolling out a new marketing strategy and recently completed a £6 million equity fundraising.
Releasing results for 2021, the group’s chief executive, Kevin Dorren, said: “We have stabilisedandimprovedthebusiness significantly. The new management team members have settled in and with the funding now complete, we are well placed to execute our growth strategy for 2022 and beyond.
“The Parsley Box team comprises experience, commitment, inspiration, creativity, and leadership - the skillset for business growth. We are confident
and excited about the future, and the team and I are determined to build on the current stronger foundations to expand and grow.”
The results showed that total revenues grew by 4 per cent last year to £25.5m. Costs incurred meantthatthegroupsuffereda loss for the year of £9.7m, wider than the £3.2m reported a year earlier.
Repeat customer revenue grew by 18 per cent to £20.7m while there was 8 per cent growthinactivecustomernumbers“showingincreasingbrand
awareness”.
The firm told investors: “After a challenging 2021, the £6m equity fundraising completing in March 2022 gives the board confidence that 2022 will be the beginning of a new chapter in the group’s development.
“Stock levels have continued to increase since the year end. Despite the wider macroeconomic challenges, with the funding complete, stock levels in good shape and the new marketing strategy showing
early positive signs, the board remains confident about the year ahead.”
Nigel Parson, consumer analyst at Finncap, noted: “Today’s results from Parsley Box are a tad better than expected.
“The balance sheet has been strengthened following the recent £6m placing and open offer, with the funds to be used to reboot its growth strategy by focusing on four key areas: customer acquisition and retention, developing the online proposition, launching a membership
programme and continuing new product development, both for the shorter and longer term.”
Dorren added: “I would like to thank our staff for their hard work during the year. I am incredibly proud of everyone at Parsley Box and how they adapted to the disruption caused by Covid-19 and for their efforts in an extraordinarily busy year having listed in March 2021.”