Warpaint warns on profits; to split joint CEO roles

Cosmetics company Warpaint warned on profits on Friday and said it would split the positions of its joint chief executives.

In an update on trading for the year to the end of December, the group said adjusted pre-tax profit will be between £5.1m and £5.5m as it has taken a hit from geographic mix of sales, adverse exchange rate movements and investment in its strategy for future growth, particularly in the US. Warpaint had said in an update in August that full-year adjusted pre-tax profit was set to come in between £6m and £7m.

Group sales for the year will be about £50m, in line with the guidance given in August, it said.

The company also said it would be splitting the positions of the joint chief executives from 1 January 2020, with Sam Bazini remaining as chief executive and Eoin Macleod being appointed to the newly-created position of managing director, "reflecting his more operational focus".

Chairman Clive Garston said: "Whilst the unprecedented volatility in exchange rates in recent months has had a negative impact on the profits of the company, both from a translational and margin perspective, I am pleased by our overall trading performance."

At 0920 GMT, the shares were down 16% at 68.25p.