Warpaint London plc (LON: W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, has today provided a trading update in respect of the financial year ended 31 December 2019, together with details of certain corporate initiatives.
UK Retail Expansion
The Company is pleased to announce a new collaboration with a leading UK supermarket group to sell a core range of over 100 of the Group’s W7 branded products, in over 50 stores across the UK. W7 products will be displayed in bespoke free-standing display units located in the store’s cosmetics aisles.
The sale of the Group’s W7 branded products through this leading UK supermarket group represents a significant step forward in the Company’s strategy to grow its UK market share through sales from new retail outlets for the Group. The Company is in detailed discussions with a number of other large UK retailers to stock the Group’s products.
Subject to audit, the Company expects to report revenue of £49.3 million and adjusted profit before tax (excluding amortisation in connection with acquisitions, share incentive scheme costs and exceptional items, which the board expects to total approximately £2.8 million) of £5.2 million for the year ended 31 December 2019, in line with the guidance provided in the Company’s trading update on 20 December 2019.
The Company expects to report its audited results for the year ended 31 December 2019 during the week commencing 20 April 2020.
Appointment of Strategy Consultant
The Company is pleased to announce that Ward & Hagon Management Consulting LLP has been appointed to provide additional strategic resource and to assist the Company in implementing its strategic growth plans. Ward & Hagon will have a particular focus on assisting the Group to access new retail channels with a view to growing its UK market share and developing its business in the USA.
Paul Hagon, a Non-executive Director of Warpaint, is a partner of Ward & Hagon. As part of Ward & Hagon’s appointment, Mr Hagon will fulfil the role of Interim Strategy and Business Development Director and his Ward & Hagon partner, Martyn Ward, will fulfil the role of Interim Commercial and Transformation Director, both non-board roles and for an initial period of one year. Mr Hagon and Mr Ward are both experienced executives in the retail and wholesale sectors, working with major branded suppliers to develop and deliver business plans, together with appropriate sales and marketing strategies.
Commenting, Clive Garston, Chairman of Warpaint London, said: “We are delighted that the Group’s products are going to be stocked by a leading UK supermarket group and we look forward to both developing our relationship with them and to seeking further new relationships with other large retailers, both in the UK and Internationally.
“I am also pleased that the Group will be able to benefit further from Paul Hagon’s skills and we look forward to the assistance Ward & Hagon can provide as we seek to grow the Warpaint business.”