Love Hemp Group PLC (AQSE:LIFE) (OTCQB:WRHLF) has announced its unaudited interim results for the six months ended 31 December 2021.
Financial & Operational Highlights
- Revenue of £1.74 million ($2.28 million), down from £2,379,144 for the previous period.
- Gross margin of 20% down from 48% for the previous period.
- Reduction in revenue because of repositioning product line and brand away from discounting.
- Reduction in gross margin due to some one-time costs and due to increased costs with brand building.
- Increase in operating loss for the period to £5,08 compared to the previous period of £1,02 million.
- Robust product delivery despite supply chain issues caused by the pandemic.
- Launch of a first national media campaign starring Anthony Joshua, OBE, across TV, print, and outdoor advertising.
Andrew Male said that the company's financial performance is "disappointing, but reflects the planned and significant investment Love Hemp has made in marketing and brand building."
"The company continues to work towards an up-listing to the London Stock Exchange Main Market and will update shareholders with the timing for this once the board has completed its strategic and operational review," Male continued. "As part of these preparations, the company has been able to attract additional independent non-executive directors to the Board in Graham Mullis and Garry Cook, who are already having an impact by providing a strategic and operational challenge with additional rigor and governance to the company."
FSA Novel Foods Update
In addition, the company reported that it has been included in the latest update from the Food Standard Agency's Public List of CBD products, enabling Love Hemp to progress through to the validation stage in due course.
The FSA's latest Public List endorses all of our submitted products and enables Love Hemp to continue to trade legally. Importantly, the FSA's decision also provides clarity for consumers.
Love Hemp had submitted multiple individual products at the beginning of this process two years ago and has initially invested over £300,000 to ensure it received the best legal and scientific advice for a successful application.
As part of the manufacturing and production process, Love Hemp is one of the few brands with an in-house Quality Assurance team that gathers and catalogs invaluable product and study data to ensure quality control.
Photo: Courtesy of Towfiqu barbhuiya on Unsplash
