Warpaint London PLC (AIM:W7L), the AIM-listed cosmetics group behind the W7, Barry M and Dirty Works brands, saw its shares fall 7% to 175p as difficult trading conditions that dogged 2025 extended into the new year, with first-half 2026 sales running materially below the prior year.
Unaudited group sales for the four months to 30 April 2026 are expected to come in at approximately £26.1 million, against £32.6 million in the same period last year.
The group said sales are expected to be more second-half weighted than in prior years, owing to the timing of larger orders and planned customer rollouts from May 2026 onwards.
Signs of recovery emerged in April, with sales expected to exceed those achieved in April 2025. Full-year 2025 results reflected the broader pressure, with adjusted EBITDA falling 15% to £21.3 million despite revenues growing 3% to £105.1 million, including an £11.8 million contribution from Brand Architekts, acquired in February 2025.
Gross profit margin improved 140 basis points to 42.6%, reflecting new product launches, a modest price increase and sourcing efficiencies.
Profit before tax fell 24% to £18.1 million. The group ended 2025 with £16 million in cash and no debt, rising to £17.3 million by end of March 2026.
Post-period, Warpaint acquired the Barry M cosmetics brand out of administration for £1.4 million.
The board is recommending a final dividend of 9.0 pence per share, bringing the full-year total to 13.0 pence, up from 11.0 pence in 2024.