REG - Warpaint London PLC - Trading Update

Warpaint LondonAnnouncement

06/02/2025 07:00

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RNS Number : 0875W  Warpaint London PLC  06 February 2025

6 February 2025

 

Warpaint London PLC

 

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

 

Trading Update

 

Strong trading performance for the year ending 31 December 2024 and a positive
start to 2025

 

Warpaint London plc (AIM: W7L; OTCQX: WPNTF), the specialist supplier of
colour cosmetics and owner of the W7 and Technic brands is pleased to provide
a trading update for the year ended 31 December 2024.

 

Revenue for the year ended 31 December 2024 is expected to be approximately
£102 million (2023: £89.6 million) and profit before tax to be approximately
£24 million (2023: £18.1 million).

 

The strong trading performance has continued into January 2025, with revenue
approximately 15% ahead of January 2024, at an improved margin.

 

The Company expects to release its results for the year ended 31 December 2024
in late April 2025.

 

Commenting, Sam Bazini, Chief Executive Officer of Warpaint, said: "I am
pleased with the Group's performance in 2024 and the strong start to 2025,
despite ongoing consumer spending headwinds. It was also pleasing that
improved margins were maintained throughout the year.

 

"We expect to see continued growth across the Group in 2025 and we look
forward to completing the acquisition of Brand Architekts later this month and
integrating the business into the Group."

 

Note: All figures used in this announcement, other than those in respect of
the financial year ended 31 December 2023, remain subject to audit.

 

 

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 major 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
cosmetics under its other brand names of Man'stuff, Body Collection and Chit
Chat, each targeting a different demographic.

 

Appendix: Profit forecasts

 

Warpaint London plc Profit Estimate for FY 2024

 

 1.1.  The guidance in relation to FY 2024 included in this announcement
constitutes an ordinary course profit estimate ("FY 2024 Profit Estimate") for
the purposes of the City Code on Takeovers and Mergers (the "Code"):

 

1.2.  Basis of preparation

 

The basis of accounting used for the FY 2024 Profit Estimate is consistent
with the Group's existing accounting policies, which are in accordance with
UK-adopted International Accounting Standards and in accordance with the
Companies Act 2006 and the accounting policies which were applied in the
preparation of the Group's financial statements for the year ended 31 December
2023.

 

Although the financial period to which the FY 2024 Profit Estimate relates has
been completed, the Company's audited accounts for the year ended 31 December
2024 are not available as at the date of this trading update. Accordingly, the
FY 2024 Profit Estimate is based on the Company's unaudited interim results
for the six months ended 30 June 2024 and the Company's unaudited management
accounts for the six months ended 31 December 2024.

 

1.3.  Principal assumptions

 

1.4.  In confirming the FY 2024 Profit Estimate remains valid, the directors
of Warpaint have made the following principal assumptions in respect of the
financial year ending 31 December 2024:

 

Factors outside the influence or control of the Company

 

•        there will be no retrospective change in legislation or
regulatory requirements that will have a material impact on the Company's
operations.

 

Factors both outside and within the influence or control of the Company

 

•        no events will arise between the date of this trading update
and the date on which the Company announces its audited results for the
financial year ended 31 December 2024, which would require incorporation in
the FY 2024 results in accordance with UK-adopted International Accounting
Standards and/or the Company's accounting policies.

 

 

1.5.  Directors' confirmation

 

The Directors confirm that the FY 2024 Profit Estimate remains valid and that
it has been properly compiled on the basis of the principal assumptions stated
above and that the basis of accounting used is consistent with Warpaint's
accounting policies set out above.

 

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