Fashion house UnderCoverWear (UCW) has reported a significant drop in revenue in first half figures for the 2012 financial year.
The company, which sells both outerwear and lingerie ranges, reported revenue for the half-year ended December 31, 2011 was down 38.6 per cent to $6,602, 993, compared to $10,751,754 in the previous corresponding period.
UCW, which has been in operating since 1981, also suffered a net loss of $16.1 million for the 2011 financial year, after ceasing local production in December 2010 and moving its manufacturing offshore.
The company admitted, via an official statement, that the results were “disappointing”, but confirmed that management at UCW has significantly reduced expenses and are budgeting to return modest profits in the second half.
UCW directors, Stuart Richardson, John Everett, and Richard Lowry, said increasing the size of the independent sales consultant field through re-building the recruitment culture would be the main focus going forward, along with keeping costs and head count in line with the current sales volume.
The company also revealed that it will ramp up investment in new training programs both online and in person, to give its sales staff the necessary tools and skills to build their individual and team sales.
UCW directors said they are confident that the strategy to be implemented will yield positive results.
“[We] are confident that the combination of careful management of overheads, the continued focus on growing consultant numbers, and the continued access to the bank facility, will provide sufficient funds to meet the ongoing capital requirements of the group for the foreseeable future.
“While there is significant uncertainty, the directors consider it appropriate to prepare the accounts on a going concern basis as they are satisfied that, based on the cash flow forecasts prepared, the group will be able to meet its debts as and when they become due and payable for a period of at least 12 months from the date of this report.”