Warpaint says trading ‘difficult’, but signs of improvement ahead
Warpaint London PLC on Tuesday noted some signs of improvement against a challenging market backdrop, in a statement ahead of its annual general meeting.
Shares in the Buckinghamshire, England-based colour cosmetics supplier were flat at 215.00 pence on Tuesday afternoon in London, and are down 52% over the past year.
Warpaint explained that the trading conditions seen in 2025 had persisted in the first quarter of 2026.
‘While trading conditions continue to be difficult, Q2 so far has been more encouraging, with sales from 1 April to 31 May 2026 ahead of the same period last year. Pleasingly, group sales overall continue to be achieved at an improved margin compared to that achieved in 2025,’ said Chair Clive Garston.
In 2025, pretax profit fell 24% to £18.1 million from £23.8 million, though revenue was up 3.4% to £105.1 million from £101.6 million. Administrative expenses swelled to £29.8 million from £17.9 million. In the April results announcement, Garston pointed to ‘subdued consumer confidence in many parts of the world’, but said the company expected an improvement, specifically in the second half of 2026.
He added on Tuesday: ‘The group has further significant planned expansion opportunities, particularly for later in 2026, and expects continued margin improvement. Therefore, whilst the board is mindful of the ongoing macroeconomic headwinds and challenging trading conditions, expectations for the full year remain unchanged.
‘As previously indicated, sales in 2026 are expected to be more second half weighted than prior years due to the timing of certain larger orders and planned customer rollouts. These include Dirk Rossmann in Germany, which launched, as expected, a capsule range of W7 products into 2,200 of its stores in May 2026 and early sales are encouraging. In the US, in addition to the previously announced significantly improved Christmas order received from Walmart, the group will be launching an online Christmas gift range with Ulta Beauty, the largest specialty beauty retailer in the US, which may lead to further opportunities in 2027.’
At the end of May, Warpaint held £20.6 million in cash, up from £15.0 million a year earlier, and was debt-free.
At the AGM, shareholders will vote on whether to approve the final dividend of 9.0p per share proposed for 2025.
Warpaint also noted that it is talks to renew the contract of Ward & Hagon Management Consulting LLP, which Warpaint previously renewed back in 2024. The renewal may involve ‘an update to the arrangements, with extra services also being provided, with the objective of accelerating Warpaint’s growth and driving business transformation,’ the company said.
These changes will reflect Warpaint’s enlarged scale since the previous contract was signed, with the company having acquired Brand Arkitekts and cosmetics seller Barry M.
As part of the renewal, Paul Hagon is stepping down from Warpaint’s board, and thus will not seek re-election at the AGM. Warpaint plans to update further on the renewal ‘in due course’.
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