REG - Warpaint London PLC - Trading Update

Warpaint LondonAnnouncement

10/11/2023 07:00

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RNS Number : 0105T  Warpaint London PLC  10 November 2023

10 November 2023

 

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.

 

Warpaint London PLC

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

 

Trading Update

 

Strong trading performance continues and results for the year ending 31
December 2023 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 provide an update on
current trading.

 

The Company announced on 20 September 2023, with its results for the six
months ended 30 June 2023, that the Group had traded strongly post period
end.  The Company is pleased to report that the strong trading has continued,
with significant growth in all geographic areas, and consequently the results
for the year ending 31 December 2023 are now expected to be ahead of market
expectations.

 

Group sales for the year ending 31 December 2023 are now expected to be at
least £85 million (2022: £64.1 million), with the key pre-Christmas sales
period for the Group still ongoing.  The Group's gross product margin remains
robust and continues to be at a level in excess of that achieved in 2022.
 Profit before tax for the year ending 31 December 2023 is now expected to be
in excess of £16 million (2022: £7.7 million).

 

The Group's expansion strategy continues, with further scheduled launches in
2023 and 2024 with new major retailers and the expansion of the range of
products stocked with certain existing customers.  Launches in November 2023
include a range of W7 products in 400 Etos stores in the Netherlands and 100
Watsons stores in the Philippines, together with a range of Technic products
being launched in over 200 Wibra stores in the Netherlands.  Further
expansion is also scheduled with existing retailers, including W7 being
stocked in an additional 372 CVS stores in the US and 102 Boots stores in the
UK during Q1 2024.

 

Enquiries:

 

 Warpaint London                                    c/o IFC

 Sam Bazini - Chief Executive Officer

 Eoin Macleod - Managing Director

 Neil Rodol - Chief Financial Officer
 Shore Capital (Nominated Adviser & 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 and Chit Chat.

 

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