Warpaint warns of hits to profitability from 'a number of factors'

Cosmetics supplier Warpaint warned investors on Tuesday that a number of factors had impacted its profitability in the current financial year.

Warpaint said that whilst trading conditions remained "challenging" in the UK, it continued to see encouraging international sales growth, particularly in the EU and the US.

However, factors including the geographic mix of sales, adverse exchange rate movements and Warpaint's investment in its strategy for future growth, were having an impact on profitability.

As a result, the AIM-listed company expected adjusted pre-tax profits for the year ending 31 December 2019 to be in the range of £6.0m to £7.0m, while group sales were projected to come in at approximately £50.0m.

Looking forward, Warpaint said it continued to have "a robust balance sheet" and noted that it would look to actively implement its strategy for growth.

As of 1050 BST, Warpaint shares had tumbled 27.20% to 57.14p.