REG - Warpaint London PLC - Trading Update

Warpaint LondonAnnouncement

08/09/2022 07:01

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RNS Number : 6801Y  Warpaint London PLC  08 September 2022

8 September 2022

 

 

Warpaint London PLC

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

 

Trading Update

 

Strong trading performance continues and results for the year ending 31
December 2022 now expected to be ahead of market expectations

 

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 interim results for the
six months ended 30 June 2022 on 21 September 2022.

 

As outlined in the Company's 'AGM Statement', announced on 27 June 2022, the
Group experienced strong trading in the first half of 2022.  The Company is
pleased to report that this positive momentum has continued since the end of
the first half and consequently the results for the year ending 31 December
2022 are now expected to be ahead of market expectations.

 

Group sales for the year ending 31 December 2022 are now expected to be at
least £61 million, with the key pre-Christmas sales period for the Group
still to come.  The Group's gross product margin remains robust and continues
to be at a level in excess of that achieved in 2021.  Adjusted profit before
tax* for the year ending 31 December 2022 is now expected to be in excess of
£9 million.

 

In addition to the strong operating performance referred to above, the Group
expects to potentially further benefit from favourable foreign exchange gains,
through its existing hedging arrangements, although the exact quantum will
depend on the prevailing exchange rates for the remainder of the year.

 

An update on the outlook for the remainder of 2022 will be provided with the
release of the interim results for the six months ended 30 June 2022.

 

* Adjusted for exceptional costs, amortisation of intangible assets and share
based payments. Adjusted numbers are close to the underlying performance of
the business which is regularly monitored and measured by management.

 

 

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, 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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