Warpaint London PLC Trading Update (5669X)
20 Dezember 2019 - 8:00AM
UK Regulatory
TIDMW7L
RNS Number : 5669X
Warpaint London PLC
20 December 2019
20 December 2019
Warpaint London PLC
("Warpaint", the "Company" or the "Group")
Trading Update
Change of Executive Director Positions
Warpaint London plc (AIM: W7L), the specialist supplier of
colour cosmetics and owner of the W7 and Technic brands, provides
an update on the trading performance for the year ending 31
December 2019 and announces a splitting of the positions of the
Joint Chief Executives.
Trading Update
The Company's board is pleased to announce that it currently
anticipates that Group sales for the financial year to 31 December
2019 will be approximately GBP50 million, in line with the guidance
provided in the Company's trading update on 6 August 2019.
As the Company has previously outlined, a number of factors,
including the geographic mix of sales, adverse exchange rate
movements and the Group's investment in its strategy for future
growth, particularly in the US, are having an impact on
profitability in the current financial year. Consequently, the
Company's board currently expects adjusted profit before tax for
the year ending 31 December 2019 (excluding amortisation in
connection with acquisitions, share incentive scheme costs and
exceptional items, which the board expects to total approximately
GBP2.8 million) will now be in the range of GBP5.1 million to
GBP5.5 million.
Exchange rate movements in recent months have had a negative
impact of approximately GBP250,000, from a translational
perspective, on profitability since the Company's last update in
September 2019. This, coupled with further negative margin impact,
has led to this reduction in the expected adjusted profit before
tax for the current financial year from the previously anticipated
range of GBP6 million to GBP7 million.
Change of Executive Director Positions
Following a review of the senior roles within the Company it has
been decided that from 1 January 2020 the positions of the Joint
Chief Executives will be split, with Sam Bazini remaining as Chief
Executive and Eoin Macleod being appointed to the newly created
position of Managing Director, reflecting his more operational
focus. Both Sam Bazini and Eoin Macleod remain significant
shareholders and as executive directors of the Company on its
board.
Commenting, Clive Garston, Chairman of Warpaint, said: "I am
pleased that we anticipate reporting sales for the current
financial year in line with the guidance we provided in August.
Whilst the unprecedented volatility in exchange rates in recent
months has had a negative impact on the profits of the Company,
both from a translational and margin perspective, I am pleased by
our overall trading performance.
"Following a review of the roles being undertaken by our Joint
Chief Executives we have decided to formally split the role. Sam
and Eoin have always split the Chief Executive role so that they
have distinct responsibilities within the Company, but with the
Company's growth and diversification since admission to AIM we
think these new positions are now an appropriate way to formally
reflect this.
"With the Company's robust balance sheet, profitable trading
performance and strategy for growth we continue to look forward to
the new year with confidence."
Enquiries:
Warpaint London c/o IFC
Sam Bazini - Joint Chief Executive Officer
Eoin Macleod - Joint Chief Executive Officer
Neil Rodol - Chief Financial Officer
Shore Capital (Nominated Adviser and Joint
Broker)
Antonio Bossi - Corporate Advisory
Fiona Conroy - Corporate Broking 020 7408 4090
N+1 Singer (Joint Broker)
Shaun Dobson - Corporate Finance
Alex Bond - Corporate Finance
Mia Gardner - Corporate Broking 020 7496 3000
IFC Advisory (Financial PR & IR)
Tim Metcalfe
Graham Herring
Florence Chandler 020 3934 6630
Warpaint London plc
Warpaint London plc is made up of two divisions.
The largest division sells cosmetics under the lead brand names
of W7 and Technic. W7 is sold in the UK primarily to discount
retailers and internationally to local distributors or retail
chains. The Technic brand is sold in the UK and the rest of Europe
with a significant focus on the gifting market, principally for
high street retailers and supermarkets. In addition, this division
supplies white label cosmetics produced for several major high
street retailers. The Group also sells cosmetics using the smaller
brand names of Man'stuff, Body Collection, Vintage, Outdoor Girl,
Very Vegan, Chit Chat, Smooch, Copy Cat and Taxi.
The second division trades in close-out and excess stock of
other branded cosmetics and fragrances from around the world.
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END
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