29th Oct 2018 09:21
LONDON (Alliance News) - Shares in Warpaint London PLC plunged on Monday as it said the UK market has remained challenging for the company with softening sales, even as it expects a rise in profit and revenue for 2018.
The colour cosmetics supplier was down 40% to 123.62 pence early Monday, setting a new 52-week low of 121.00p along the way.
Warpaint said its UK market, which accounted for 44% of group's sales in the first half of the year, saw further softening following the end of the interim period due to retailers reducing their stock levels and Christmas orders.
The group said the reduction in previously anticipated UK sales will hurt its performance for 2018, which will not be completely offset by an outperformance in its sales territories overseas.
As at September 30, sales in the US were up 60% compared to the same period in 2017, and sales in the EU were up 14% year-on-year.
In addition, Warpaint London made its first domestic sales in China from its newly established trading subsidiary and has also made its first sales in Russia.
Based on the company's current expectations, pretax profit for 2018 is set to be in the range of GBP8.5 million to GBP10 million, up from GBP6.9 million the year before, and revenue is expected in the range of GBP48 million to GBP52 million, up from GBP32.5 million the year before, on a statutory basis.
"Whilst the current UK market conditions are challenging we are seeing strong growth in our overseas sales. We remain well positioned to take advantage of any improvement in UK market conditions and will continue our strategy of growing and diversifying our international sales," said joint chief executives Sam Bazini and Eoin Macleod.
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Warpaint London