Warpaint London plc (LON:W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands has announced a trading update for the year ended 31 December 2022.
The Company announced in its interim results on 21 September 2022 that sales for the year ending 31 December 2022 were expected to be at least £61 million (2021: £50.0 million). Following particularly strong trading in Q4 2022, the Company is pleased to report sales for the full year have exceeded previous expectations and are expected to be approximately £64 million.
In addition, in its full year results, the Group expects to report adjusted EBITDA* of approximately £11.8 million (2021: £7.6 million) and adjusted profit before tax** of approximately £10 million (2021: £6.9 million), both of which are ahead of current market expectations and the board’s previous guidance for adjusted profit before tax**, as outlined in the interim results on 21 September 2022, of in excess of £9 million.
The Company continues to have a strong balance sheet with cash balances as at 31 December 2022 totalling £5.8 million (31 December 2021: £4.1 million) and no debt.
The Group expects to release its results for the year ended 31 December 2022 in April 2023.
Commenting, Sam Bazini Chief Executive, said: “I am delighted with the performance of the Group in 2022 and I am pleased to report that we ended 2022 ahead of expectations, both for sales and profits. We enjoyed a strong trading performance in Q4 2022 across the Group, with sales growth in the US and online being particular highlights. We were also able to improve our margins year-on-year.
“We expect to see a continuing strong performance in 2023 and I look forward to updating further at the time of the release of the Group’s results in April.”
Note: All figures used in this announcement relating to the financial year ended 31 December 2022 remain subject to audit.
* Adjusted for foreign exchange movements, share based payments and exceptional items.
** Adjusted for exceptional items, amortisation of intangible assets, and share based payments.
Adjusted numbers are close to the underlying cash flow performance of the business which is regularly monitored and measured by management.
