REG - Warpaint London PLC - Trading Update and Notice of Results

Warpaint LondonAnnouncement

12/04/2022 07:00

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RNS Number : 0286I  Warpaint London PLC  12 April 2022

12 April 2022

 

 

Warpaint London PLC

("Warpaint", the "Company" or the "Group")

 

Trading Update and Notice of Results

 

Strong trading performance continues into Q1 2022

 

Warpaint London plc (AIM: W7L), the specialist supplier of colour cosmetics
and owner of the W7 and Technic brands, is pleased to announce an update on
current trading ahead of the release of the Company's results for the year
ended 31 December 2021 on Tuesday 26 April 2022.

 

Trading Update

 

As outlined in the Company's 'Full Year Trading Update' announced on 1
February 2022, the Group experienced strong 2021 trading.  The Company is
pleased to report that this positive momentum has continued in the first
quarter of 2022.  Group sales for the first three months of 2022 are
approximately 60% ahead of the same period in 2021, with sales increases seen
across all of the Group's brands.

 

Gross product margin has also improved in the first quarter of 2022, against
the level achieved in the year ended 31 December 2021, despite increased costs
in the supply chain, particularly in respect of freight.

 

Sales of the Group's W7 branded products through Tesco stores continue to
perform well, with more stores and space being allocated to the Group across
the Tesco estate.  In February 2022, the Group successfully launched 45 W7
products in an initial 80 Boots stores and the brand is performing in line
with Group management's and Boots' expectations.  The Group has also secured
a significant contract with a further major UK grocer to produce a range of
all year-round products and Christmas gifting.

 

Warpaint's activities in the USA continue to grow, aided by the Group having
taken on a number of experienced US based salespeople, resulting in six new
accounts being opened in the US and several Christmas gifting orders being
received from new customers, the most notable being a significant order from
CVS to be delivered in September this year.

 

Online sales continue to accelerate and for the first quarter of 2022 were 29%
ahead of the same period in 2021.  The growth in online sales has been aided
by sales of the W7 brand in China, following the launches in 2021.  Online
sales in China are growing month on month and the board believes that over the
next 18 months online revenues in China will make a meaningful contribution to
the Group's online sales.

 

To aid the Group's focus on the environment and sustainability, including a
drive to reduce plastics and manage the Group's waste, Kevin Laughton has been
appointed as the Group's packaging technologist and sustainability lead.
Kevin is an experienced technical packaging professional who will be focussed
on ensuring that the Group not only complies with the increasing legislation
in this area, but also that the Group embraces the challenges proactively and
ensures the use of environmentally sustainable materials while focusing on the
core Group strategy of producing affordable quality cosmetics.

 

An update on the outlook for the remainder of 2022 will be provided with the
release of the results for the year ended 31 December 2021.

 

Investor Presentation

 

Warpaint's management will be hosting an online presentation and Q&A
session on Tuesday 26 April 2022 at 5.30 p.m. BST.  This session is open to
all existing and prospective shareholders.  Those who wish to attend should
register via the following link and they will be provided with access details:

 

https://us02web.zoom.us/webinar/register/WN_RAnJgEoaSdiUqNkdO9yt0w
(https://us02web.zoom.us/webinar/register/WN_RAnJgEoaSdiUqNkdO9yt0w)

 

Participants will have the opportunity to submit questions during the session,
but questions are welcomed in advance and may be submitted to:
warpaint@investor-focus.co.uk.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

Enquiries:

 Warpaint London                                                          c/o IFC

 Sam Bazini - Chief Executive Officer

 Eoin Macleod - Managing Director

 Neil Rodol - Chief Financial Officer

 Singer Capital Markets (Nominated Adviser & Joint Broker)                020 7496 3000

 Shaun Dobson, Tom Salvesen, Jen Boorer, Alex Bond - Investment Banking
 Shore Capital (Joint Broker)                                             020 7408 4090

 Patrick Castle, Daniel Bush - Corporate Advisory

 Fiona Conroy - Corporate Broking

 IFC Advisory (Financial PR & IR)                                         020 3934 6630

 Tim Metcalfe, Graham Herring, Florence Chandler

 

Warpaint London plc

 

Warpaint 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.

 

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