InnovaDerma soars as 'Skinny' self-tan sales lead to maiden profit

Beauty products developer InnovaDerma said it expects full year revenues and profits will be "significantly higher" than last year thanks to strong growth from its Skinny Tan self-tanning lotion.

InnovaDerma, which only shifted its main listing onto the London Stock Exchange from Paris' Euronext, said a key driver of growth had been the expansion of its international distribution and retail network from 250 to 2,500 retail outlets, including Superdrug in the UK and two of the largest pharmacy chains in Australia and South Korea.

Since the acquisition in May last year of Australia-based Skinny Tan, maker of a self-tanning lotion that also masks the appearance of cellulite, the group said revenue for the year to 30 June will have grown more than 800% to £4.2m and therefore producing a maiden net profit.

This was attributed to underlying organic growth across the product range but mainly from the contribution of Skinny Tan, which received investment from Kelly Hoppen after appearing on the Dragon's Den TV show, has widened its range since the acquisition and has been a best-selling product at Superdrug.

"In tandem with its growing network of key retailers, the company is highly focused on its digital direct to consumer strategy which has supported revenue growth and enabled Skinny Tan to grow in popularity," the company said.

"Brand loyalty in multiple markets is building strongly as the company continues to expand its international footprint."

Shares in InnovaDerma soared 400% to 400p in early trading, but by the afternoon had receded to 237p, still well up on the 85p at which it floated in London on 9 September.