Warpaint London warns challenging UK conditions to weigh on profits

Writer, Stock Market Wire
Monday, October 29, 2018 - 07:19

Cosmetics company Warpaint London warned that challenging trading conditions in the UK would weigh on its annual sales and profits.

The company said that the UK market, which accounted for 44% of sales in the first half, had recently seen further softening, with retailers reducing stock levels and Christmas orders.

'This reduction in previously anticipated UK sales will have an impact on group performance for the full year that will not be completely offset by better-than-anticipated performance in our major overseas sales territories,' Warpaint said.

The company said it expected to post revenue for the year through December of £48m-to-£52m and adjusted pre-tax profit of £8.5m-to-£10m.

The company did not mention comparative figures, but last year it booked annual statutory revenue of £22.5m and adjusted pre-tax profit of £6.7m.

Warpaint said sales in its international territories, in particular the US and the EU excluding the UK, had remained strong.

At 30 September, sales in the US were up 60% on-year and and sales in the EU were up 13% on-year.

'Whilst the current UK market conditions are challenging we are seeing strong growth in our overseas sales,' co-chief executives Sam Bazini and Eoin Macleod said.

'We remain well positioned to take advantage of any improvement in UK market conditions and will continue our strategy of growing and diversifying our international sales.'

'Warpaint is a profitable and cash generative business that is well positioned for continued growth and the maintenance of our progressive dividend policy.'

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