**Summary of Warpaint London PLC Interim Results for H1 2025**
Warpaint London PLC, a specialist supplier of color cosmetics and owner of brands like W7, Technic, and Skin & Tan, reported its unaudited interim results for the six months ended 30 June 2025. Key highlights include
### **Financial Performance**
**Revenue Growth**Revenue increased by 8% to £49.3 million (H1 2024: £45.8 million), driven by strong UK and international sales, including contributions from the acquisition of Brand Architekts.
**Gross Profit Margin**Improved to 45.0% (H1 2024: 42.5%) due to successful product launches, sourcing efficiencies, and volume savings.
**Adjusted EBITDA**Declined slightly to £10.8 million (H1 2024: £11.4 million).
**Profit Before Tax**Fell to £6.4 million (H1 2024: £10.9 million), impacted by non-cash foreign exchange losses, exceptional costs related to the Brand Architekts acquisition, and a gain from the bargain purchase of Brand Architekts.
**Cash Position**Increased significantly to £17.0 million (H1 2024: £5.5 million), boosted by the acquisition of Brand Architekts.
**Interim Dividend**Raised by 14% to 4.0p per share (H1 2024: 3.5p).
### **Operational Highlights**
**Brand Architekts Acquisition**Completed in February 2025, contributing £6.1 million to Group revenue in H1 2025.
**UK and International Sales**UK revenue grew by 15.9% to £18.0 million, while international revenue increased by 3.2% to £31.3 million.
**Direct Online Sales**Rose by 48% to £3.4 million, representing 6.8% of Group sales.
**Store Rollouts**Significant expansions planned for H2 2025 in the UK, Europe, and the US, including partnerships with Superdrug, Tesco, Boots, and CVS.
### **Challenges and Outlook**
**Customer Administration**A long-term customer, G.R. & M.M. Blackledge plc (Bodycare), entered administration, leading to a £0.5 million provision for amounts due.
**Market Conditions**Subdued consumer and customer confidence in the UK and US market uncertainty due to tariffs are expected to impact full-year performance.
**Full-Year Guidance**The company expects revenues between £107 million and £112 million, and adjusted EBITDA between £23.5 million and £25.5 million, reflecting a second-half weighted performance.
### **Strategic Focus**
**Margin Improvement**Continued focus on enhancing margins through sourcing strategies and cost efficiencies.
**Brand Expansion**Leveraging the Brand Architekts acquisition to expand into new markets and customer segments.
**Supply Chain Optimization**Investigating opportunities to manufacture products outside China to mitigate tariff impacts and ensure supply consistency.
Despite short-term challenges, Warpaint London remains confident in its medium- and long-term growth prospects, particularly in the UK and Europe, supported by its robust brand portfolio and strategic initiatives.