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Warpaint London PLC on Wednesday upped its interim dividend and reported improved revenue, but lowered its outlook for the full-year, citing market uncertainty and subdued consumer confidence. Shares in the Buckinghamshire, England-based colour cosmetics supplier and owner of W7 and Technic brands fell 19% to 231.90 pence on Wednesday morning in London. Warpaint reported pretax profit of £6.4 million for the six months that ended June 30, down 41% from £10.8 million a year earlier. Revenue however grew 7.5% to £49.3 million from £45.8 million, with increased administrative expenses hampering the bottom line as they more than doubled to £19.4 million from £8.5 million. W7 sales were down slightly at £29.8 million from £30.2 million, but with Warpaint expecting a return to growth in the second half. Technic sales were 15% lower at £12.4 million from £14.5 million as Warpaint reported a fall in sales of retailer own brand white label cosmetics. Ecommerce, by contrast, saw revenue surge 48% to £3.4 million from £2.3 million, including the impact of Brand Architekts. Warpaint acquired Brand Architekts for £13.9 million back in February of this year, with it stating that it is already benefitting from the expansion of its brands into its customers. The company increased its interim dividend by 14% to 4.0p from 3.5p, ‘given the available cash and ongoing profitability of the group.’ Cash and cash equivalents at June stood at £17.0 million, multiplied from £5.5 million a year earlier. Looking ahead, the company said it was lowering its expectations for the full-year. It cited a weak UK consumer environment, an uncertain US market tied to tariffs and noted that long-term customer, GR & MM Blackledge plc, known as Bodycare, has entered administration. Warpaint said it expects to achieve revenue of between £107 million and £112 million in 2025, compared to £101.6 million realised last year. It also anticipates adjusted earnings before interest, tax, depreciation and amortisation of between £23.5 million and £25.5 million. In 2024, it reported adjusted Ebitda of £25.0 million. Chief Executive Sam Bazini commented: ‘The group traded satisfactorily during the first half despite the challenging macroeconomic environment, but we have seen conditions remain difficult in recent months, with both consumer and customer confidence being subdued, which now seems likely to remain for some time. ‘Coupled with continuing US market uncertainty, alongside a specific customer recently going into administration, we are disappointed to be lowering our expectations for the full year. ‘Nevertheless, we continue to have a strong second half roll out and see excellent medium- and long-term growth opportunities across the group, particularly in the UK and Europe, and further opportunities from the addition of the Brand Architekts’ brands. We also remain focused on achieving additional improvements in margins across the group.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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