20th Jul 2023 16:22
(Alliance News) - Brand Architekts Group PLC on Thursday said it expects revenue in the financial year that ended on June 30 to climb, backed by its acquisition of InnovaDerma, which it completed in May last year.
The London-based challenger brand business in beauty sector said it eyed full-year revenue of around GBP20.1 million, up 41% from GBP14.2 million a year prior. Excluding InnovaDerma, revenue rose around 7%, helped by "strong" international sales despite challenging trading conditions in UK channels.
InnovaDerma is a London-based developer of beauty, personal care and life science products which was bought in May 2022 by Brand Architekts in a deal that valued InnovaDerma at around GBP13.6 million.
Architekts's net cash as at June 30 was around GBP8.2 million, down 27% from GBP11.3 million a year prior.
"Despite the challenging trading environment the group generated a reduced operating loss in H2, a significant improvement on the performance in H1, due to a focus on better targeted advertising &
promotions resulting in improved contribution. Full year losses are expected to see similar improvement," Brand Architekts said.
Looking ahead, Chief Executive Quentin Higham said: "We continue to focus our resources on our key invest and nurture brands. I am positive about the future and optimistic to see the growth potential in our performance focussed portfolio. We are confident that our brand development and brand reach strategic pillars will help us achieve our profit goals."
The company expects to release its results for the financial year ended June 30 in late October.
Brand Architekts shares rose 15% to 33.45 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News reporter
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