Warpaint issues profit warning, changes joint CEO roles
Warpaint London, the beauty specialist that owns the W7 and Technic brands, issued a trading update for 2019 on Friday and it came with a profit warning. It also announced that it’s changing its current joint CEO set-up.
On the trading front, it said group sales for the financial year to December 31 will be around £50 million, in line with the guidance provided in an update in August.
But “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”.
That means it expects adjusted profit before tax for the year (excluding exceptional items of around £2.8 million) will now be in the range of £5.1 million to £5.5 million. It had previously expected profits of £6 million to £7 million.
It has seen a “further negative margin impact” in recent months that contributed to the profits downgrade.
Meanwhile, as far as its current joint CEOs are concerned, from January 1, Sam Bazini will remain as sole CEO and Eoin Macleod will take up the newly created position of managing director, “reflecting his more operational focus”.
The company stressed that both Bazini and Macleod “remain significant shareholders and as executive directors of the company on its board”.
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