- Koovs inked a new contract with Future Lifestyle Fashions to develop a new and exclusive fashion range for the latter's Brand Factory. Under the terms of the contract, valid to 31 March 2022, Koovs would develop an exclusive range of menswear clothing for Brand Factory on a wholesale basis, with no right of return if the goods were not sold, the company said.

The new range would be available under the Chelsea King brand name and, initially, would be sold in 25 Brand Factory stores.

The first season, commencing Sept 2019, was expected to generate wholesale revenue of approximately £0.6m, and be profitable after deducting the cost of the goods sold. The Brand Factory sales would pass through Koovs' supply chain which would also benefit from the increased volumes.

The agreement would also further expand the retail distribution for Koovs Private label products, which would be rolled out in an additional five Central Stores, two in Bangalore and one in each of Hyderabad, Noida, Pune making eight stores in total.

'This revised agreement signed on 2 July 2019, expands from that signed on 3 October 2018 (as announced on 7 May 2019) and is expected to generate revenue over the next 12 months of c. £0.15m,' the company said.

The distribution of Koovs Private Label Menswear would also be piloted in three Brand factory stores - Bangalore, Mumbai, New Delhi, the company added.

At 8:00am: [LON:KOOV] Koovs Plc Ord 1p share price was +0.1p at 6.5p

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