18th Sep 2019 11:05
(Alliance News) - Cosmetics firm Warpaint London PLC posted a resilient interim performance, it said on Wednesday, in a "challenging" retail market.
However, Warpaint has posted a pretax loss for the six months to June of GBP210,000, after a pretax profit of GBP1.3 million the year prior. Profit was hit by a rise in depreciation.
Warpaint shares slumped early August after the company warned on a decline in profitability. They were 1.9% lower on Wednesday at 50.50 pence apiece, but were as high as 267.50p just under a year ago.
Warpaint's sales for the year rose 2.9% to GBP18.9 million, with International sales particularly strong, growing by 7.8% to GBP11.1 million.
The company has maintained the interim dividend flat at 1.5p per share.
Joint Chief Executives Sam Bazini and Eoin Macleod said: "In a challenging retail market, particularly in the UK, the business is showing resilience and adapting to the changing market conditions, increasing international sales by 7.8% and seeing an improvement in the performance of Retra.
"The group's cosmetic brands remains the primary strategic focus of the group, with significant sales of Christmas gifting being delivered in the second half of the year. As in 2018, we expect overall group earnings to be weighted to the second half of this financial year."
Overall, Bazini and Macleod said, the company is confident on future performance. Sales guidance for 2019 is held at GBP50 million, and adjusted pretax profit will be between GBP6 million and GBP7 million.
In 2018, revenue was GBP48.5 million, and adjusted pretax profit GBP8.2 million.
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