Warpaint London plc (LON:W7L; OTCQX: WPNTF), the specialist supplier of colour cosmetics and owner of the W7, Technic, Skin & Tan, Super Facialist, Dirty Works and Fish Soho brands, has announced its audited results for the year ended 31 December 2024.
| Audited 12 months to31 December 2024 | Audited 12 months to31 December 2023 | Growth | |
| Revenue | £101.6m | £89.6m | +13% |
| Gross profit margin | 41.2% | 39.9% | +130bps |
| EBITDA | £24.2m | £20.9m | +16% |
| Adjusted profit before tax* | £24.6m | £18.4m | +33% |
| Profit from operations | £24.0m | £18.5m | +30% |
| Basic earnings per share (EPS) | 23.5p | 18.1p | +29% |
Financial Highlights
· Continued growth in sales, margins and profits to reach record levels for the Group. Significant organic growth in all key geographic regions reflecting the focus on growing sales of the Group’s branded products
· Group sales for 2024 grew by 13% to £101.6 million (2023: £89.6 million)
· EU revenue increased by 22% to £54.7 million (2023: £45.1 million)
· UK revenue increased by 8% to £35.0 million (2023: £32.4 million)
· US revenue increased by 19% to £8.7 million (2023: £7.3 million), an increase of 22% in US dollar terms
· Gross profit margin increased to 41.2% (2023: 39.9%)
· EBITDA increased 16% to £24.2 million (2023: £20.9 million)
· Adjusted profit before tax* up by 33% to £24.6 million (2023: £18.4 million)
· Earnings per share up 29% to 23.5p (2023: 18.1p)
· Cash of £21.9 million (including £14.0 million held in escrow to fund the Brand Architekts Group PLC consideration paid post-year end) as at 31 December 2024 (31 December 2023: £9.1 million), with no debt
· Recommended final dividend of 7.5 pence per share (2023: 6.0 pence per share), bringing the total dividend for the year to 11 pence per share (2023: 9.0 pence per share), an increase of 22%
*Adjusted for amortisation costs, share-based payments and costs associated with the acquisition of Brand Architekts Group PLC
Operational Highlights
· Sales of the Group’s branded products were £95.1 million (2023: £84.8 million), up 12%, driven by the Group’s lead brand W7, which increased by 14% to £65.4 million (2023: £57.4 million)
· Direct online sales continue to grow significantly, with an increase of 35% in 2024 to £8.4 million, accounting for 8.3% of Group sales (2023: £6.2 million, 6.9% of Group sales)
· Continuing brand sales momentum, both internationally and the UK, including:
o In Europe: further range and store expansions with existing customers including Etos and Normal
o In the UK: a full range of Technic products were launched in an initial 202 Morrisons stores; further expansion with Boots, with an over fourfold increase in retail space; further rollout with Superdrug; and expansion with Tesco
o In the US: expanding the W7 range stocked and roll-out to a further 387 stores with CVS; significant order received from Walmart, for W7 and Chit Chat product; significant expansion with Five Below
Post-Period End Highlights and Outlook
· Solid start to trading in Q1 2025, with unaudited Group sales for the three months to 31 March 2025 of £26.7 million, an increase of 14% on the same period in 2024 (3 months to 31 March 2024: £23.5 million). Excluding the contribution from Brand Architekts (from 12 February 2025), Group sales up 7% in Q1 2025 compared to Q1 2024
· Margins in Q1 increased and were better than those achieved in the full year 2024
· Maintained a strong balance sheet, with no debt. Cash balances as at 8 April 2025 were £17.3 million (2 April 2024: £7.5 million)
· Completion of the acquisition of Brand Architekts on 12 February 2025, adding a portfolio of health, beauty and personal care brands to the Group, including Skin & Tan, Super Facialist, Dirty Works and Fish Soho, sold throughout the UK and internationally. The integration of Brand Architekts into the Group is progressing well and the Warpaint directors continue to believe that the acquisition will be earnings enhancing in the year ending 31 December 2025
· Continuing brand sales momentum expected in 2025, both internationally and the UK, including:
o In Europe: Tigota in Italy launching a range of products in 200 stores with a capsule collection going into an additional 400 stores and in the Netherlands Etos is expected to expand its product assortment in all 546 stores with a permanent fixture and an enhanced range in selected stores
o In the UK: Superdrug rolling out W7 into 140 new stores and travel size products in all stores from June 2025. Tesco have confirmed a 150 store expansion of the Group’s W7 impulse offering during 2025. Boots to take gifting products for the first time for Christmas 2025 (to be stocked in 350 stores) and accessories going into 250 stores
o In the US: expanding the W7 range stocked and roll-out to a further 399 stores with CVS from August 2025, taking the number of CVS stores stocking the Group’s products to 918
o In talks with other large retailers in Europe, the UK and the US to stock the Group’s products
· Despite continuing headwinds, including the effect of increased US tariffs, the Group has significant planned expansion opportunities and the board expects the Group’s performance to remain strong and for sales and profits to grow in line with previous expectations over the remainder of 2025 and beyond. Accordingly, the board’s expectations for the Group’s financial performance in 2025 are unchanged
Commenting, Clive Garston, Warpaint London Chairman, said: “I am very pleased with the Group’s record 2024 financial performance. in 2024 which has continued into 2025, despite the challenging macroeconomic environment. This reflects the delivery of Warpaint’s consistent and focussed strategy of ensuring its branded products are sold through an ever-expanding network of large retailers globally, by gaining more space within these retailers, entering relationships with new ones and increasing the Group’s online sales presence.
“The board expects the Group performance to remain strong and for sales and profits to continue to grow over the remainder of 2025 and beyond. We continue to see significant growth opportunities, particularly in the UK and Europe, and with the addition of the Brand Architekts’ brands we have further opportunities for growth. The recently implemented increased US tariffs are having an impact on our US business, but the US remains a modest part of the Group’s overall business, and with significant growth opportunities elsewhere and strategies in place to mitigate their effect, we do not expect tariffs to have a material impact on the Group’s financial performance in 2025. Accordingly, the board’s expectations for the Group’s financial performance in 2025 are unchanged.”
