Warpaint London plc (LON:W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands has announced an update on current trading.

Following a continuation of the improving trends seen in the first half of the year, and outlined in the Company’s interim results announcement on 22 September 2021, the Company now expects its results for the year ending 31 December 2021 to be ahead of market expectations.

Sales for the year ending 31 December 2021 are now expected to be similar to those achieved in 2019 (2020: £40.3 million, 2019: £49.3 million), the most recent financial year that experienced no impact from the Covid-19 pandemic.  This has been driven by growth both from existing customers and those new to the Group, and is despite continuing Covid-19 related disruption in 2021, particularly with government imposed lockdowns in the early part of the year.

Gross margins are currently being maintained ahead of those achieved in 2020 and 2019 (2020: 31.1%, 2019: 33.5%), despite some increased costs in the supply chain, particularly with freight.  The Company therefore anticipates that the Group’s Adjusted EBITDA* (2020: £4.2 million, 2019: £7.0 million) and Adjusted Profit Before Tax** (2020: £2.3 million, 2019: £5.2 million) for the year ending 31 December 2021 will be ahead of 2019 and current market expectations, and the performance delivered in 2020.

The previously declared interim dividend of 2.5p per share will be paid on 26 November 2021 to shareholders on the register at 12 November 2021.  The shares will go ex-dividend on 11 November 2021. 

* Adjusted for foreign exchange movements, share based payments and exceptional items.

** Adjusted for exceptional costs, amortisation of intangible assets, and share based payments. Adjusted numbers are close to the underlying cash flow performance of the business which is regularly monitored and measured by management.

Commenting, Sam Bazini Warpaint London Chief Executive, said: “I am pleased to report that the encouraging trends experienced in the first half of 2021 have continued.  We are continuing to see particularly strong growth in the UK, significant growth elsewhere internationally and further increases in online sales.

“In line with our stated strategy, we have significant opportunities for further growth, both with our existing retailers, those such as Boots where we are expecting to launch soon, and with others that we are in discussions with.  I look forward to the remainder of the year and into 2022 with a high degree of confidence.”