# Warpaint London Renew Ward & Hagon Contract to Accelerate Growth and Business Transformation

- Link: https://www.directorstalkinterviews.com/warpaint-london-renew-ward-hagon-contract-to-accelerate-growth-and-business-transformation/4121140603
- Published: 2024-02-01T07:23:23+00:00
- Author: Ethan Davis

**Warpaint London plc** (LON:W7L), the specialist supplier of colour cosmetics and
owner of the W7 and Technic brands, has announced that on 31 January 2024, it renewed
its contract with Ward & Hagon Management Consulting LLP for a period of 24 months,
effective 1 January 2024. At the end of the 24 month period, the Contract will continue
on the same terms subject to a six month notice period which can be served by either
party.

The Company originally appointed Ward & Hagon, a provider of practical business 
solutions, in February 2020 to assist it in implementing its strategic growth plan.
The contract was renewed on 19 February 2021 for a period of 12 months and was again
renewed on 1 March 2022 for a period of 24 months effective from 1 January 2022.
The objective of the Contract renewal is to continue to accelerate Warpaint’s growth
and drive further business transformation.

The Contract has a total fixed value over 24 months of £450,000 (£225,000 per annum)
and includes the services of Paul Hagon, an executive director of the Company and
Martyn Ward, together with other members of the Ward & Hagon team. In addition, 
Ward & Hagon has an opportunity under the Contract to earn up to £175,000 per annum
through non-discretionary performance related sales bonuses and commissions. Payments
under the Contract will be satisfied from the Group’s operating cash flows.

The Board is of the view that Ward & Hagon has been important to the Group’s success
over the last few years and the services provided under the Contract represent good
value to shareholders.

**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 Shore Capital, 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.

Warpaint London sells branded cosmetics under the lead brand names of W7 and Technic.
W7 is sold in the UK primarily to retailers and internationally to local distributors
or retail chains. The Technic brand is sold in the UK and continental Europe with
a significant focus on the gifting market, principally for high street retailers
and supermarkets. In addition, Warpaint supplies own brand white label cosmetics
produced for several major high street retailers. The Group also sells cosmetics
using its other brand names of Man’stuff, Body Collection, Very Vegan, and Chit 
Chat.

Share on: