20th Dec 2019 11:41
(Alliance News) - Cosmetics firm Warpaint London PLC warned on annual profit on Friday due to "a number of factors".
The stock was 14% lower on Friday morning in London at a price of 70.30 pence per share.
Warpaint has guided for adjusted pretax profit of between GBP5.1 million and GBP5.5 million in 2019, compared to previous guidance of between GBP6 million to GBP7 million.
The company has, however, reiterated sales guidance of around GBP50 million. Pretax profit in 2018 was GBP8.2 million, on revenue of GBP48.5 million.
"As the company has previously outlined, a number of factors, including the geographic mix of sales, adverse exchange rate movements and the group's investment in its strategy for future growth, particularly in the US, are having an impact on profitability in the current financial year," said Warpaint.
Warpaint also has decided to end its joint chief executive structure. Sam Bazini will remain as CEO, with his counterpart Eoin Macleod moving to the new role of managing director.
Chair Clive Garston said: "I am pleased we anticipate reporting sales for the current financial year in line with the guidance we provided in August. Whilst the unprecedented volatility in exchange rates in recent months has had a negative impact on the profits of the company, both from a translational and margin perspective, I am pleased by our overall trading performance.
"Following a review of the roles being undertaken by our joint chief executives we have decided to formally split the role. Sam and Eoin have always split the chief executive role so that they have distinct responsibilities within the company, but with the company's growth and diversification since admission to AIM, we think these new positions are now an appropriate way to formally reflect this."
"With the company's robust balance sheet, profitable trading performance and strategy for growth, we continue to look forward to the new year with confidence," Garston continued.
By George Collard; [email protected]
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