Warpaint London PLC Trading Update (3964F)
29 Oktober 2018 - 8:00AM
UK Regulatory
TIDMW7L
RNS Number : 3964F
Warpaint London PLC
29 October 2018
29 October 2018
Warpaint London plc
("Warpaint London" or the "Company" or the "Group")
Trading Update
Warpaint London plc (AIM: W7L), the specialist supplier of
colour cosmetics and owner of the W7 and Technic brands, provides a
trading update for the year ending 31 December 2018.
As stated in the Company's interim results for the period to 30
June 2018, the outturn for the financial year is heavily dependent
on second half trading. Sales in our international territories, in
particular the USA and the EU (excluding the UK) have remained
strong and we continue to see significant growth in these areas. As
at 30 September 2018 Group sales to the USA were up 60% compared to
the same period in 2017 (up 74% in US$ terms) and sales in the EU
(excluding the UK) were up 13% year on year. We are also pleased to
have recently made our first domestic sales in China from our newly
established Chinese trading subsidiary and to have made the first
Group sales into Russia.
However, the UK market, as highlighted in our interim results,
remains challenging. The UK market, which accounted for 44% of
Group sales in the first half of the year, has seen further
softening recently, with retailers reducing stock levels and
Christmas orders. This reduction in previously anticipated UK sales
will have an impact on Group performance for the full year that
will not be completely offset by better than anticipated
performance in our major overseas sales territories.
Based on current expectations the Company's board anticipates
that revenue for the year ending 31 December 2018 will be in the
range of GBP48 million to GBP52 million. Consequently, the
Company's board currently expects profit before tax for the year
ending 31 December 2018 (excluding amortisation in connection with
acquisitions and exceptional items, which total approximately
GBP2.5 million) will be in the range of GBP8.5 million to GBP10
million.
The reported level of profitability for the full year will be
crucially dependent on the precise product and geographic mix of
sales for the remainder of the year, the busiest period of the year
for the Group.
Commenting, Sam Bazini and Eoin Macleod, Joint Chief Executives
said: "Whilst the current UK market conditions are challenging we
are seeing strong growth in our overseas sales. We remain well
positioned to take advantage of any improvement in UK market
conditions and will continue our strategy of growing and
diversifying our international sales. Warpaint is a profitable and
cash generative business that is well positioned for continued
growth and the maintenance of our progressive dividend policy."
Enquiries:
Warpaint London PLC c/o IFC
Sam Bazini - Joint Chief Executive Officer
Eoin Macleod - Joint Chief Executive Officer
Neil Rodol - Chief Financial Officer
Stockdale Securities Limited (Nominated
Adviser and Broker)
Antonio Bossi, Ed Thomas - Corporate Finance
Fiona Conroy - Corporate Broking 020 7601 6100
IFC Advisory Limited (Financial PR & IR)
Tim Metcalfe
Heather Armstrong
Florence Chandler 020 3934 6630
Warpaint London plc
Warpaint London is a colour cosmetics business, based in Iver,
Buckinghamshire. It is made up of two divisions: close-out and
own-brand. The second and larger own-brand division primarily
consists of the Group's flagship brand, W7, together with the
Technic, Body Collection and Man'stuff brands acquired through the
acquisition of Retra Holdings in 2017.
W7 is an extremely creative, design-focused cosmetic brand
proposition with a focus on the 16-30 age range, delivering
high-quality cosmetics at affordable prices. The W7 brand has grown
organically since its inception in 2002 and now contains over 700
items which are sold into high street retailers and independent
beauty shops across the UK, Europe, Australia and the US. In 2017,
W7 was supplied in more than 60 countries.
In 2017 Warpaint completed the acquisition of Retra Holdings
Limited, a UK colour cosmetics business with a significant focus on
the gifting market, principally for high street retailers and
supermarkets including Boots, Superdrug and Asda. Retra owns three
major brands: Technic, Body Collection and Man'stuff, in addition
to supplying white label cosmetics produced for several major high
street retailers including Asda and Matalan.
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END
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