Made, a trendy online furniture retailer revealed severe stock shortages that made life difficult for listed companies.
Made – which is backed high profile tech investors such as Brent Hoberman – has had a rough ride since going public in June with City analysts sceptical about whether the firm will ever turn a profit.
Yesterday, shares plunged another 9.2 percent, or 12.4p., to 122p. The 200p mark was reached in 2000.
Made, a trendy online furniture seller has been through a lot since it went public in June. City analysts are skeptical about the possibility of making a profit.
Made advised customers that they were facing delays due to the closing of Vietnam’s manufacturing plant, congestion at ports, and longer shipping times.
Due to an increase in Covid-related infections, the Vietnamese government shut down several factories.
Accordingly, the retailer anticipates that a greater percentage of its sales will be delayed until 2022.
Made said the disruptions had ‘worsened in recent months, negatively impacting the timing of stock intake’.
Worldwide shipping delays and manufacturing problems have resulted from the pandemic.
There have been instances when ships have not been able to dock in ports that have experienced lockdowns or shortages of staff, which have affected delivery across the globe.
These are in addition to any factory closures, Covid restrictions and energy shortages.
The London-based company has slashed its 2021 revenue guidance to between £365million and £375million, saying that £35million to £45million of its sales would be realised next year when items eventually reach customers.
Made had previously forecast revenues of £410million for the year. Profits would take a £12million to £15million hit in 2021.
Although the company was founded in Shoreditch in east London in 2010, it is extremely popular among millennials. However, shares have declined by 40% since its IPO.