Warpaint FY results to beat market expectations

Cosmetics group Warpaint said on Tuesday that its full-year results are set to be ahead of market expectations following a continuation of the improving trends seen in the first half of the year.

Sales for the year to the end of December are now expected to be similar to the £49.3m achieved in 2019. Warpaint said this has been driven by growth both from existing and new customers and is despite continuing Covid-related disruption, 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 despite some increased costs in the supply chain, particularly with freight, it said.

As a result, group adjusted earnings before interest, tax, depreciation and amortisation and adjusted pre-tax profit for the year to the end of December will be ahead of 2019, 2020 and current market expectations.

Chief executive Sam Bazini said: "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."

Warpaint owns the W7 and Technic brands.

At 0945 GMT, the shares were up 14% at 173.92p.