10th Apr 2019 10:48
LONDON (Alliance News) - Warpaint London PLC on Wednesday reported a drop in its annual profit as administrative costs surged, despite revenue rising 49%.
For 2018, the colour cosmetics firm posted pretax profit of GBP4.7 million, 32% lower from GBP6.9 million a year ago.
Meanwhile, revenue rose 49% to GBP48.5 million from GBP32.5 million.
The fall in profitability was due to administrative costs rising to GBP12.3 million from GBP5.7 million a year prior, of which GBP2.3 million amounted to amortisation charges.
"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. However, despite the challenges of 2018 I believe the company is well placed for the future," Chair Clive Garston said.
He added: "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."
The company declared a final dividend of 2.9 pence per share for the year, taking its total payout to 4.4p. This compares to a total dividend of 4.0p a year ago.
Warpaint London shares were trading 6.0% lower at 92.50 pence each on Wednesday.
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