Shares of Made.com (LON: MADE) fell more than 10% on Thursday after the online furniture retailer said it may sell shares to improve its balance sheet.
Made said it was “considering all possibilities,” including capital raising. “If and when appropriate,” it added.
Made lowered its yearly revenue and profit projections last month due to rising living costs in the U.K. The company predicts a core earnings loss of £50 million to £70 million this year and a 15% to 30% drop in sales.
The group, which went public in June 2021, issued its third earnings warning. Since its debut, shares have fallen 90%.
Made said it was looking to boost its balance sheet and control growing costs, adding that it faces challenging conditions in the next few years.
At the end of the first half, the company had unaudited net cash of £31.5 million. This was due to a large investment in inventory, and by 2022, the company is expected to have between £5 million and £30 million.
The company, known for trendy furnishings for younger clients, also noted high supply chain costs. Larger-than-expected freight delivery expenses and “substantial” fuel surcharges hurt the gross.
