REG - Warpaint London PLC - Ward & Hagon Contract Renewal

Warpaint LondonAnnouncement

01/02/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240201:nRSA6047Ba&default-theme=true

RNS Number : 6047B  Warpaint London PLC  01 February 2024

1 February 2024

 

Warpaint London PLC

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

 

Ward & Hagon Contract Renewal

 

Warpaint London plc (AIM: W7L), the specialist supplier of colour cosmetics
and owner of the W7 and Technic brands, announces that on 31 January 2024, it
renewed its contract (the "Contract") with Ward & Hagon Management
Consulting LLP ("Ward & Hagon") for a period of 24 months, effective 1
January 2024. At the end of the 24 month period, the Contract will continue on
the same terms subject to a six month notice period which can be served by
either party.

 

The Company originally appointed Ward & Hagon, a provider of practical
business solutions, in February 2020 to assist it in implementing its
strategic growth plan. The contract was renewed on 19 February 2021 for a
period of 12 months and was again renewed on 1 March 2022 for a period of 24
months effective from 1 January 2022. The objective of the Contract renewal is
to continue to accelerate Warpaint's growth and drive further business
transformation.

 

The Contract has a total fixed value over 24 months of £450,000 (£225,000
per annum) and includes the services of Paul Hagon, an executive director of
the Company and Martyn Ward, together with other members of the Ward &
Hagon team. In addition, Ward & Hagon has an opportunity under the
Contract to earn up to £175,000 per annum through non-discretionary
performance related sales bonuses and commissions. Payments under the Contract
will be satisfied from the Group's operating cash flows.

 

The Board is of the view that Ward & Hagon has been important to the
Group's success over the last few years and the services provided under the
Contract represent good value to shareholders.

 

 

Related Party Transaction

 

Paul Hagon, an executive director of Warpaint, is a member of Ward &
Hagon.  Accordingly the renewal of the Contract is classified as a related
party transaction pursuant to the AIM Rules for Companies.  The independent
directors of the Company (being all executive and non-executive directors
except Mr Hagon), having consulted with Shore Capital, the Company's Nominated
Adviser, consider that the terms of the Contract renewal are fair and
reasonable insofar as the Company's shareholders are concerned.

 

Enquiries:

 Warpaint London                                      c/o IFC

 Sam Bazini - Chief Executive Officer

 Eoin Macleod - Managing Director

 Neil Rodol - Chief Financial Officer

 Shore Capital (Nomad and 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.

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  CNTEAPFFDFALEFA