Warpaint London plc (LON:W7L) warned full-year before tax will drop even further than previously announced due to slower sales in the UK and increased investment in US growth.
The owner of the W7 and Technic make-up brands said it now expects to report adjusted profit before tax of between £5.1mln to £5.5mln, while in August it was estimated to be in the range of £6mln to £7mln.
READ: Warpaint profits under pressure as it invests in US growth amid slower UK sales
Sales for the year to 31 December will be £50mln, in line with guidance.
The cosmetics maker said the reasons were the adverse exchange rate movements, costing £250,000 since September, and investment in the US, as well as a different mix of sales.
The AIM-listed firm also said the positions of joint chief executives will be split from 1 January.
Sam Bazini remains as chief executive and Eoin Macleod will be appointed to the newly created position of managing director, reflecting his more operational focus.
They both are shareholders and executive directors.
“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,” chairman Clive Garston said in a release.
“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.”
Shares dropped 17% to 16.05p on Friday morning.