Warpaint London delivers record revenue and strong cash growth in 2025

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 audited results for the year ended 31 December 2025.

¹ 2024 Cash and cash equivalents excludes £14.0 million, which was held in an escrow account at 31 December 2024. The funds were released in February 2025 and utilised in the acquisition of Brand Architekts Group PLC.

Adjusted numbers are close to the underlying cash flow performance of the business which is regularly monitored and measured by management.  The adjustments made to the statutory numbers are shown in the table below.

Numbers are displayed rounded to one decimal place. Percentages are calculated based on the original (unrounded) figures.

Financial Highlights

· Results reflect the challenging trading environment across many of the Group’s markets

· Group sales for 2025 grew by 3% to £105.1 million (2024: £101.6 million), including the £11.8 million contribution from Brand Architekts Group PLC (“Brand Architekts”) from 12 February 2025

· EU revenue was 3% lower at £52.9 million (2024: £54.7 million)

· UK revenue increased by 11% to £38.9 million (2024: £35.0 million)

· US revenue fell 21% to £6.9 million (2024: £8.7 million), a decrease of 18% in US dollar terms

· ROW revenue increased by 101% to £6.5 million (2024: £3.2 million)

Operational Highlights

· Completed the acquisition of Brand Architekts in February 2025 and successfully integrated the business into the Group, delivering a positive Adjusted EBITDA contribution compared to the losses reported prior to acquisition. Further improvements to the Brand Architekts portfolio being implemented in 2026 that are expected to increase margin, particularly in H2 2026 and into 2027

· Continuing brand focus, particularly in H2 2025, both internationally and the UK, including:

o In Europe: launch of W7 into 200 Tigota stores in Italy, with a capsule collection going into a further 400 stores; expanded W7 assortment into all 546 Etos stores in the Netherlands, with permanent fixtures and an expanded range and W7 going into an additional 150 Normal stores following the chain’s expansion

o In the UK: expanded into 140 additional Superdrug stores; gifting rolled out into 350 Boots stores for Christmas 2025, alongside an expansion of accessories into 250 additional stores and further expansion with 150 additional Tesco stores taking an Impulse offering

o In the US: expanded the W7 range stocked and rolled out to a further 399 CVS stores

o In the ROW: expanded sales in Chemist Warehouse in Australia and New Zealand and launched into the Warehouse Group, New Zealand

o In a number of retailers volumes increased year-on-year, but generated reduced revenues as consumers increasingly favoured lower price points within the product range

· Direct online sales were £11.6 million, up 38% year on year, accounting for 11.0% of Group sales (2024: £8.4 million/8.3%)

Post-Period End Highlights and Outlook

· The difficult trading conditions experienced in 2025 continued in Q1 2026 with unaudited Group sales for the four months to 30 April 2026 expected to be approximately £26.1 million (four months to 30 April 2025: £32.6 million). However, sales in April 2026 are expected to be in excess of those achieved in April 2025, with signs of recovery being experienced

· Sales in 2026 are expected to be more second half weighted than prior years due to the timing of certain larger orders and planned customer rollouts from May 2026

· Maintained a strong balance sheet, with no debt. Cash balances as at 31 March 2026 were £17.3 million (31 March 2025: £15.8 million)

· 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. Barry M is a well-established value cosmetics brand, trading in a similar market segment to Warpaint’s cosmetics brands

· Significantly improved Christmas order received from Walmart, now that tariff levels in the US have settled compared to 2025

· Expansion of the Group’s footprint in Europe in 2026 is expected to include a contribution from Dirk Rossmann in Germany, part of the AS Watson group, which is launching, as a pilot, a capsule range of W7 products into all of its 2,200 stores from May 2026

· The Group continues to expand outside of the UK, Europe and the US, with new markets opened in South America and an Indian subsidiary entity starting trading in Q2 2026

· Despite continuing global macroeconomic headwinds the Group has significant planned expansion opportunities, particularly for later in 2026, and expects continued margin improvement

Commenting, Clive Garston, Warpaint London Chairman, said:

“Whilst the 2025 results were disappointing, it was a year of resilience and strategic progress for Warpaint. Despite a challenging macroeconomic backdrop and specific one-off headwinds, the Group delivered record revenues, strengthened margins and maintained a robust, debt-free balance sheet. We also demonstrated the ability to execute value-accretive acquisitions, successfully integrating Brand Architekts and, post year end, adding the Barry M brand to further enhance the Group’s brand portfolio and retail reach.

“Looking ahead, whilst trading conditions remain subdued, I am confident that our clear strategy, strong cash generation and entrepreneurial culture position Warpaint well for a return to earnings growth. With an expanded brand portfolio, further customer rollouts expected and increasing global distribution, the board expects performance to improve through 2026, particularly in the second half.”