Warpaint London shares continue meteoric rise as profits top £20m

  • Warpaint London shares have increased by 146% in the last year  

Warpaint London shares rose on Wednesday after the group hailed record annual sales and profits on the back of booming demand for its branded make-products. 

The London-listed group, which owns the W7 and Technic brands, enjoyed ‘significant’ growth in all territories as sales soared 40 per cent -year-on-year to £89.6million. 

The boost saw pre-tax profits rocket 136 per cent to £18.1million, as earnings before interest, tax, depreciation and amortisation jumped 74 per cent to £20.4million.

Warpaint shares were up 4.68 per cent or 22p to 492.00p on Wednesday afternoon, having risen by 146 per cent in the last year.    

On the up: Warpaint London enjoyed a sharp increase in online sales last year 

Revenue growth was driven by European Union sales, which surged 60.5 per cent to £45.1million, while UK and US revenue grew 17.6 and 36.8 per cent respectively to £32.4million and £7.3million.

Warpaint has been expanding its presence in major retailers around the world, while its W7 products were last year rolled-out in 200 New Look and 71 Superdrug stores in the UK.

The group said growth reflected ‘the focus on growing sales of the group’s branded products’, which rose 47 per cent in the year to £84.8million, driven by W7. 

Direct online sales increased by 121 per cent in 2023 to £6.2million, accounting for 6.9 per cent of sales.

The group recommended a final dividend of 6p per share, taking the total dividend for the year to 9p, up 27 per cent. 

Chairman Clive Garston, said: ‘This reflects the delivery of Warpaint’s consistent and focused strategy. The key to our growth has been, and will continue to be, expanding our presence in large retailers globally, by growing our sales with existing customers, entering into relationships with new ones and increasing our online presence.

‘Notwithstanding the continuing volatile economic environment and challenges facing our customers, I am optimistic that the strong performance we have seen in 2022, 2023 and now into 2024 will continue and that we have the right offering and strategy in place to continue to deliver profitable future growth.’

Milo Bussell, an analyst at Edison Group, said: ‘The significant growth in branded products, particularly the stellar performance of lead brand W7, underscores the efficacy of Warpaint’s product portfolio and market positioning. 

‘Expansion efforts into major retailers, particularly across the UK and US have paid off, yielding record sales for Q1 2024 and positioning Warpaint optimistically for the future. 

‘With a solid foundation and momentum, Warpaint remains poised to capitalise on its strategic initiatives and continued growth in major retailers, fostering confidence for the year ahead.’

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