Warpaint London – the 2024 results showed strength, 2025 will see further growth, shares at 405p and heading higher

29.04.2025

This morning’s results from Warpaint London (LON:W7L), the affordable colour cosmetics group, reported a strong showing for the company’s year to end-December 2024.

They revealed that revenues were up 13% at £101.6m (£89.6m), while adjusted pre-tax profits were 33% better at £24.6m (£18.4m), generating earnings up 29% at 23.5p (18.1p) per share, easily covering a dividend of 11.0p (9.0p).

Management Comment

Chairman Clive Garston stated that:

"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."

Analyst Views

At Shore Capital Markets its analysts Clive Black and Darren Shirley noted the cost control in the last year was outstanding, with operating costs up only 1% year on year.

Maintaining their recent revenue and profit estimates for the next few years the analysts conclude:

“We reiterate our view that such multiples represent an attractive entry point for a business with multiple years of growth ahead, supported by a strong balance sheet and robust sustained cash generation.

In a more volatile world, we see Warpaint’s strong balance sheet a major source of strength.”

They look for sales in 2025 of £128.6m (£101.6m), with adjusted pre-tax profits of £29.0m (£24.6m), earnings of 27.0p (24.4p) and an increasing dividend of 12.2p (11.0p) per share.

In My View

Warpaint London shares were up over 5% yesterday 20p better at 405p, I see them progressing even further this year.