Warpaint London PLC (LON:W7L), the specialist supplier of high-quality colour cosmetics and personal care brands at an affordable price, has announced that at the Annual General Meeting of the Company to be held at 10 a.m. today, Clive Garston, Chairman of the Company, will make the following statement:
“As outlined in our 2025 full year results announcement at the end of April, the trading conditions experienced in 2025 continued in Q1 2026. While trading conditions continue to be difficult, Q2 so far has been more encouraging, with sales from 1 April to 31 May 2026 ahead of the same period last year. Pleasingly, Group sales overall continue to be achieved at an improved margin compared to that achieved in 2025.
“The Group has further significant planned expansion opportunities, particularly for later in 2026, and expects continued margin improvement. Therefore, whilst the Board is mindful of the ongoing macroeconomic headwinds and challenging trading conditions, expectations for the full year remain unchanged.
“As previously indicated, 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. These include Dirk Rossmann in Germany, which launched, as expected, a capsule range of W7 products into 2,200 of its stores in May 2026 and early sales are encouraging. In the US, in addition to the previously announced significantly improved Christmas order received from Walmart, the Group will be launching an online Christmas gift range with Ulta Beauty, the largest specialty beauty retailer in the US, which may lead to further opportunities in 2027.
“The Company continues to have a strong balance sheet, with no debt. Cash balances as at 31 May 2026 totaled £20.6 million (31 May 2025: £15.0 million).
“As previously announced, pending approval by shareholders at today’s AGM, a final dividend of 9.0 pence per share will be paid on 3 July 2026 to shareholders on the register at 12 June 2026.”
Ward & Hagon Contract Renewal and Directorate Change
On 1 February 2024, the Company announced that it had renewed its contract with Ward & Hagon Management Consulting LLP for a period of 24 months, with a continuation on the same terms thereafter until relevant notice is given. The Company is in advanced discussions with Ward & Hagon regarding a further renewal of this contract and an update to the arrangements, with extra services also being provided, with the objective of accelerating Warpaint’s growth and driving business transformation. The Renewal is expected to include additional sales responsibilities and increased time commitments to reflect the increase in the size of the Warpaint business since 1 February 2024, both organically and with the acquisitions of Brand Architekts and the Barry M brand.
As part of the Renewal, Paul Hagon will step down from the board and therefore the resolution to approve his re-appointment will be withdrawn from the business of the AGM today.
The Company will make a further announcement in due course, as appropriate, regarding the Renewal.
