Warpaint London plc (LON:W7L; OTCQX: WPNTF), the specialist supplier of high-quality colour cosmetics and personal care brands at an affordable price, and owner of the W7, Technic, Skin & Tan, Super Facialist, Dirty Works, Fish Soho and Barry M brands, has announced its unaudited interim results for the six months ended 30 June 2026.
Highlights
| Unaudited six months to 30 June 2026 | Unaudited six months to 30 June 2025 | Change | |
| Revenue | £40.5m | £49.3m | -17.8% |
| Gross profit margin | 47.3% | 45.0% | +230bps |
| Adjusted EBITDA* | £6.8m | £10.7m | -36.4% |
| Profit before tax | £4.9m | £7.3m | -33.2% |
| Adjusted earnings per share (EPS)* | 4.5p | 8.3p | -46.6% |
| Cash and cash equivalents | £20.7m | £17.0m | +21.5% |
| Interim dividend per share | 4.25p | 4.0p | +6.3% |
| Group sales were £40.5 million in H1 2026 (H1 2025: £49.3 million), reflecting challenging trading conditions as expected, order timing and non-recurring sales in the prior period, partially offset by a £2.5 million contribution from the Barry M brand following its acquisition in February 2026 |
| Gross profit margin increased by a further 230bps to 47.3% (H1 2025: 45.0%) as a result of the Group sourcing strategy, including the benefit of re-sourcing Brand Architekts products, new product development and a one-off contribution of approximately 150bps from selling through Barry M inventory acquired at a discount |
| Cash flow from operating activities increased by 80.9% to £7.4 million (H1 2025: £4.1 million), with free cash flow increasing to £6.3 million (H1 2025: £3.0 million) |
| Profit before tax was £4.9 million (H1 2025: £7.3 million) |
| Cash increased to £20.7 million as at 30 June 2026 (31 December 2025: £16.0 million, 30 June 2025: £17.0 million), with the Group remaining debt free |
| Given the available cash and ongoing profitability of the Group, the board has declared an increased interim dividend of 4.25p per share (2025 interim dividend 4.0p per share), up 6.25% |
* Adjusted for foreign exchange movements, exceptional items, amortisation and share-based payments. Adjusted numbers are close to the underlying cash flow performance of the business which is regularly monitored and measured by management.
The figures for 30 June 2025 have been restated to reflect the final net assets acquired in respect of the Group’s acquisition of Brand Architekts Group Plc on 12 February 2025, which was determined post 30 June 2025.
Numbers are displayed rounded to one decimal place. Percentages are calculated based on the original (unrounded) figures.
Operational Highlights
| Acquisition of the Barry M brand, including its IP, stock and order book, but excluding the manufacturing capabilities and any liabilities, for a cash consideration of £1.4 million, out of administration. The Barry M brand has been successfully integrated, including the re-sourcing of products to ensure continuity of supply |
| W7 capsule range successfully launched into 2,200 Rossmann stores in Germany in May 2026, with the initial launch meeting the retailer’s performance metrics and discussions underway regarding a further rollout |
| Continued development of the Group’s relationship with Superdrug, including strong growth in W7 sales and the launch of W7 Christmas gifting for the first time |
| Further progress with Tesco, including an additional 200 Express stores and a significant expansion of the number of stores taking W7 products for Halloween |
| Significantly increased Christmas gifting activity secured for H2 2026, including the previously announced substantially larger Walmart Christmas order and the launch of an online Christmas gift range with Ulta Beauty in the US |
| Technic introduced into Tigotà in Italy, generating a number of encouraging initial orders, including for Christmas gifting |
| Brand Architekts products successfully re-sourced and relaunched at improved margins, with particularly encouraging sales growth from the Fish Soho and Root Perfect brands |
| Direct online sales were up 6% to £3.6 million (H1 2025: £3.4 million), representing 8.9% of Group sales (H1 2025: 6.8%) |
Current Trading and Outlook
| Group sales for the nine months to 30 September 2026 are expected to be approximately £69 million (nine months to 30 September 2025: £76 million), reflecting positive trading in Q3. Q3 2026 sales are expected to be approximately £28.5 million, approximately 5% higher than the £27.1 million recorded in Q3 2025 |
| As previously indicated, the Group’s performance in 2026 is expected to be significantly more second half weighted than in prior years, reflecting the timing of larger customer orders and planned rollouts, significantly increased Christmas gifting activity, continued growth in ecommerce and a contribution from Barry M |
| The initial W7 launch with Rossmann in Germany met the retailer’s performance metrics, with discussions underway regarding a further rollout |
| Further expansion planned with Tesco, including an increased presence in Express stores and for Halloween, while the Group’s relationship with Superdrug also continuing to develop strongly |
| Significantly increased Christmas gifting activity in H2 2026, including the substantially larger Christmas order from Walmart and the launch of an online Christmas gift range with Ulta Beauty in the US |
| Group remains well positioned financially, with a strong balance sheet and no debt |
| Commencement of an initial share buyback programme on 27 July 2026 of up to £2.5 million, which is expected to complete before the end of September 2026 |
| The Board currently expects revenue for the year ending 31 December 2026 to be towards the lower end of the range of current market expectations** and Adjusted EBITDA to be within the current range of analyst forecasts |
** In so far as the Company is aware, as at 22 September 2026, market expectations for the year ending 31 December 2026 were revenue of between £103.3 million and £112.6 million and Adjusted EBITDA of between £22.4 million and £24.0 million. These estimates are analysts’ forecasts and are not produced or endorsed by Warpaint. For the year ended 31 December 2025 Warpaint reported audited revenue of £105.1 million and Adjusted EBITDA of £21.3 million.
Commenting, Sam Bazini Chief Executive, said:
“The first half of 2026 has undoubtedly been a challenging period, with pressure on consumer spending and cautious retailer ordering across many of our markets. Against this backdrop, we have remained focused on the areas within our control, and I am pleased that we have continued to improve gross margin, generate strong cash flow and position the Group for future growth.
“Importantly, our brands and customer relationships remain strong. We have made encouraging progress with a number of major retailers, including Rossmann, Superdrug, Tesco and Tigotà, ecommerce continues to grow, and the Barry M brand has been successfully integrated into the Group.
“As we have previously indicated, we expect 2026 to be significantly more second half weighted than in prior years. We have considerably more Christmas gifting activity planned, alongside further customer and store expansion and a contribution from the Barry M brand.
“While we remain mindful of continuing macroeconomic headwinds, we have a strong balance sheet, no debt and a number of significant growth opportunities ahead of us. With sales to the end of September 2026 expected to be closer to the level achieved last year than was the case at the half year, we remain comfortable with current market expectations for the full year and confident in the longer-term growth prospects for Warpaint.”
