Warpaint – Trading Update for the 2024 year shows a big advance but price collapses

06.02.2025

This morning’s announcement of a Trading Update for the year to end-December 2024 reports that Warpaint (LON.W7L) had a very positive business period.

The specialist supplier of colour cosmetics stated that it had a strong trading performance last year and has already seen a positive start to 2025.

Last year’s revenue is expected to be some £102m (£89.6m) with pre-tax profits of around £24.0m (£18.1m).

The group also reports that it has already seen that strong trading performance having been continued into January 2025, with sales some 15% ahead and at an improved margin.

The £430m-capitalised group sells branded cosmetics under the lead brand names of W7 and Technic, W7 products are sold in the UK primarily to major retailers and internationally to local distributors or retail chains, while 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.

Warpaint also supplies cosmetics under its other brand names of Man'stuff, Body Collection and Chit Chat, each targeting a different demographic.

CEO Sam Bazini stated that:

"I am pleased with the Group's performance in 2024 and the strong start to 2025, despite ongoing consumer spending headwinds.

It was also pleasing that improved margins were maintained throughout the year.

We expect to see continued growth across the Group in 2025 and we look forward to completing the acquisition of Brand Architekts later this month and integrating the business into the Group."

Having touched 650p in July last year, the shares of the company, which expects to release its 2024 Final Results in late April, saw its shares rise 15p yesterday to close at 532p.

This morning they have subsequently collapsed to 508p in response to today’s news, before heading down to 430p by the close.

It looks as though there are further price

falls to ensue.