Warpaint London profit slips on rising costs

Writer, Stock Market Wire
Monday, September 17, 2018 - 07:56

Cosmetics supplier Warpaint London said its first-half profit more than halved, after higher costs offset rising revenue.

Pre-tax profit for the six months through June fell to £1.3m, down from £2.9m on-year.

Sales jumped 39%% to £18.4m, but were offset by higher amortisation charges, the cost of new hires at the recently-acquired Retra bsuiness and the renting of a second warehouse ahead of Christmas.

Renting the new warehouse would create overall cost and efficiency savings in the second half, the company said.

'We are pleased with the progress we have made in the first half of 2018,' joint chief executives Sam Bazini and Eoin Macleod said.

'The Retra acquisition has been successfully integrated into the business and we are confident that our additional acquisition of Leeds Marketing will provide us enhanced access to the US.'

"The additional revenues in the second half, particularly from Christmas gifting, are expected to result in overall revenue being two thirds weighted to the second half of this financial year and with a fixed cost base that is evenly spread over the full year, we expect to deliver overall group earnings in line with management's expectations.'

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