Warpaint London plc (LON:W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, has announced that it has renewed its contract with Ward & Hagon Management Consulting LLP.
As announced on 6 February 2020, the Company appointed Ward & Hagon, a provider of practical business solutions, to assist it in implementing its strategic growth plan. As a result of a successful initial period, whereby they assisted the Group in accessing new retail channels (including Tesco) the Company is pleased to announce that the Contract with Ward & Hagon, has been renewed for a further 12 months.
The Contract has a total annual value of £210,000 (which will be satisfied from the Group’s operating cash flows), and includes the services of Paul Hagon, an executive director of the Company and Martyn Ward, amongst other members of the Ward & Hagon team. In addition Ward & Hagon will be paid a commission of 3% on all sales generated from their introductions in the 12 month period from the point of first sale, and 4% on all sales generated from their introductions in the 12 month period thereafter.
The board is of the view that the services provided under the Contract represent value to shareholders through assisting the Company achieving is near term objectives. Accordingly, Ward & Hagon will continue to focus on assisting the Group access new retail channels both in the UK and overseas.
Related Party Transaction
Paul Hagon, an executive director of Warpaint London, is a member of Ward & Hagon. Accordingly the renewal of the contract is classified as a related party transaction pursuant to the AIM Rules for Companies. The independent directors of the Company (being all executive and non-executive directors except Mr Hagon), having consulted with N+1 Singer, the Company’s Nominated Adviser, consider that the terms of the Contract renewal are fair and reasonable insofar as the Company’s shareholders are concerned.