Warpaint London PLC (LON:W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, today provided a trading update for the current financial year.
As reported at the time of the Company’s AGM in May 2019, whilst trading conditions remain challenging in the UK, the Company continues to see encouraging international sales growth, in particular in the EU and the US. The Board anticipates that Group sales for the financial year to 31 December 2019 will be approximately £50 million.
However, a number of factors including the geographic mix of sales, adverse exchange rate movements and the Group’s investment in its strategy for future growth, particularly in the US, are having an impact on profitability in the current financial year. Consequently, the Company’s board currently expects adjusted profit before tax for the year ending 31 December 2019 (excluding amortisation in connection with acquisitions, share incentive scheme costs and exceptional items, which the board expects to total approximately £2.8 million) will be in the range of £6 million to £7 million.
The Group continues to have a robust balance sheet and to actively implement its strategy for growth.
A further update on current trading will be provided at the time of release of the Company’s interim results for the six months to 30 June 2019, which will be announced on 18 September 2019.