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 lease at New Moorcroft House, Silsden, West Yorkshire, through to March 2028. New Moorcroft House forms part of the Silsden site used by the Group’s Retra business (whose major brands are Technic, Body Collection and Man’stuff) and comprises offices and warehouse space.
Terms of the lease agreement
A new lease agreement has been entered into between Badgequo Limited (a subsidiary of the Company) and Warpaint Cosmetics Limited (a private company, which is not part of the Group, being the owner and landlord) in relation to New Moorcroft House at an annual rent of £185,107 plus property and rent insurance expenses, with an expiry date of 11 March 2028 (the “New Moorcroft House Lease Agreement”). The previous lease over New Moorcroft House, which was in effect when the Group acquired Retra Holdings Limited in 2017, expired on 31 January 2022 and the New Moorcroft House Lease Agreement is with effect from 1 February 2022.
Related Party Transaction
The entering into the New Moorcroft House Lease Agreement with Warpaint Cosmetics Limited comprises a related party transaction pursuant to AIM Rule 13, as the directors and beneficial owners of Warpaint Cosmetics Limited are Samuel Bazini, Chief Executive Officer of the Company, and Eoin Macleod, Managing Director of the Company. The Company’s independent directors, being Clive Garston, Neil Rodol, Sally Craig, Paul Hagon, Keith Sadler and John Collier consider, having consulted with the Company’s nominated adviser, Shore Capital and Corporate Limited, that the terms of the New Moorcroft House Lease Agreement 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 and Chit Chat.