Warpaint London plc (LON:W7L; OTCQX: WPNTF), the specialist supplier of colour cosmetics and owner of the W7, Technic, Skin & Tan, Super Facialist, Dirty Works and Fish Soho brands, has announced its unaudited interim results for the six months ended 30 June 2025.
| Unaudited six months to 30 June 2025 | Unaudited six months to 30 June 2024 | Change | |
| Revenue | £49.3m | £45.8m | +8% |
| Gross profit margin | 45.0% | 42.5% | +250bps |
| Adjusted EBITDA* | £10.8m | £11.4m | -5% |
| Profit before tax | £6.4m | £10.9m | -41% |
| Adjusted earnings per share (EPS)** | 8.5p | 9.8p | -13% |
| Cash and cash equivalents | £17.0m | £5.5m | +209% |
| Interim dividend per share | 4.0p | 3.5p | +14% |
Highlights
| · | Group sales increased by 8% to £49.3 million in H1 2025 (H1 2024: £45.8 million) including the contribution from the acquisition of Brand Architekts from 12 February 2025 |
| · | UK revenue was up by 15.9% to £18.0m (H1 2024: £15.5 million) |
| · | International revenue increased by 3.2% to £31.3 million (H1 2024: £30.3 million) |
| · | Brand Architekts sales of £6.1 million represented 12% of overall Group revenue in the period |
| · | Gross profit margin grew by a further 250 bps to 45.0% (H1 2024: 42.5%) due to successful launches of new product lines, sourcing and volume savings. Excluding Brand Architekts, like-for-like gross margin improved to 45.5%, up 300bps. |
| · | Adjusted EBITDA* was £10.8 million (H1 2024: £11.4 million) |
| · | Profit before tax was £6.4 million (H1 2024: £10.9 million), predominantly reflecting £4.6 million of non-cash losses on foreign exchange forward contracts, of which £2.7 million were unrealised at 30 June 2025, a £3.9 million gain as a result of the ‘bargain purchase’ (negative goodwill) of Brand Architekts and £1.3 million of exceptional costs associated with the acquisition of Brand Architekts |
| · | Cash of £17.0 million as at 30 June 2025 (30 June 2024: £5.5 million), having acquired £6.2 million of cash as a result of the acquisition of Brand Architekts |
| · | Adjusted EPS** fell to 8.5p (H1 2024: 9.8p) partly reflecting the increase in shares in issue as a result of the Brand Architekts acquisition |
| · | Given the available cash and ongoing profitability of the Group, the board has declared an increased interim dividend of 4.0p per share (2024 interim dividend 3.5p per share), up 14% |
* Adjusted for foreign exchange movements, exceptional items and share-based payments. Adjusted numbers are close to the underlying cash flow performance of the business which is regularly monitored and measured by management.
** Adjusted for foreign exchange movements, exceptional items, share-based payments, amortisation and impairments and the gain on bargain purchase.
Operational Highlights
| · | Successfully completed the acquisition of Brand Architekts in February 2025, and are already benefitting from the expansion of its brands into a number of Group customers |
| · | Implemented an inflationary price increase to all customers, which will have a greater impact in H2 2025 |
| · | Rest of World sales up by 144% to £3.6 million (H1 2024: £1.5 million), including the launch of an expanded range with a significant Australian customer |
| · | Direct online sales, including £1.3 million from Brand Architekts brands, were up 48% to £3.4 million (H1 2024: £2.3 million) representing 6.8% of Group sales (H1 2024: 5.1%) |
| · | Significant store rollouts for H2 2025 agreed:o UK: Superdrug started rolling out W7 into 140 new stores in June 2025, Tesco have undertaken a 150 store expansion of the Group’s W7 impulse offering, and a gifting offering is going into 350 Boots stores at Christmas for the first time alongside an expansion of accessories into 250 additional storeso Europe: Tigota in Italy launching a range of products in 200 stores with a capsule collection going into an additional 400 stores; Etos in the Netherlands is expected to expand its product assortment in all 546 stores with a permanent fixture and an enhanced range in selected storeso US: expanding the W7 range stocked and roll-out to a further 399 stores with CVS which commenced in August 2025 |
Current Trading and Outlook
| · | Group sales for the eight months to 31 August 2025, including £7.7 million from the Brand Architekts brands, were £67.0 million (eight months to 31 August 2024: £63.5 million) |
| · | A long-term customer of the Group’s Technic products, G.R. & M.M. Blackledge plc, trading as Bodycare, has recently entered administration. Amounts due from this customer at 30 June 2025, totalled £0.5 million, have been provided for in full. There is a further £0.3 million due from this customer from trading after period end. Future revenue from this customer is now uncertain |
| · | As a result of the above, along with an increasingly weak UK consumer environment and an uncertain US market given the recent tariff disruption, for the 2025 full year at a GBP/US$ exchange rate of £1/US$1.34, the board now expects the Company to achieve revenues of between £107 million and £112 million, and adjusted EBITDA of between £23.5 million and £25.5 million These expectations reflect a second half weighting to the full year performance which is supported by price increases to all customers and the on-going programme of store rollouts described above, as well as the Group’s Christmas gifting sales |
Commenting, Warpaint London Sam Bazini Chief Executive, said:
“The Group traded satisfactorily during the first half despite the challenging macroeconomic environment, but we have seen conditions remain difficult in recent months, with both consumer and customer confidence being subdued, which now seems likely to remain for some time. Coupled with continuing US market uncertainty, alongside a specific customer recently going into administration, we are disappointed to be lowering our expectations for the full year.
“Nevertheless, we continue to have a strong second half roll out and see excellent medium- and long-term growth opportunities across the Group, particularly in the UK and Europe, and further opportunities from the addition of the Brand Architekts’ brands. We also remain focused on achieving additional improvements in margins across the Group.
“Despite the short-term headwinds, the board looks forward to the future with confidence.”
