Warpaint London profit slips 32% despite sales boost

Writer, Stock Market Wire
Wednesday, April 10, 2019 - 07:59

Cosmetics retailer Warpaint London booked a 32% fall in annual profit after rising sales were more than offset by acquisition and impairment expenses.

Pre-tax profit for the year through December fell to £4.7m, even as revenue jumped 49% to £48.5m.

Sales were offset by LMS and Retra acquisition costs plus expenses from a Retra staff restructuring and impairment charge.

Adjusted profit rose 6.5% to £8.2m.

The company declared a final dividend of 2.9p per share, bringing total dividends for the year to 4.4p, up 10% on-year.

'2018 was a challenging year for the company as it faced continuing uncertainty caused by the prospect of Brexit, a fluctuating Sterling exchange rate and a severe decline in retail sales on the UK high street,' chairman Clive Garston said.

'However, despite the challenges of 2018 I believe the company is well placed for the future.'

'Whilst trading conditions remain difficult in the UK, we have had a promising start to the current financial year.'

'We continue to grow internationally and expect our sales outside the UK to be an ever greater proportion of group sales going forward.'

'In particular, I am encouraged by the sales of the Retra brands and our growth in the US.'

"The group has a sound financial footing with a strategy for growth across all our markets.'

'The board is cautiously optimistic for the 2019 financial outturn, with growth in sales and Ebitda anticipated.'

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