Warpaint shares surge on 'encouraging growth'
Colour cosmetics specialist Warpaint London said on Friday that trading in the year-to-date had been “encouraging”, with brand sales in the UK for the first five months up 64% year-on-year, and up 18% over 2019, before the effect of the Covid-19 pandemic.
The AIM-traded firm, which was holding its annual general meeting, said growth in UK sales for the W7 brand had been assisted by its roll out in Tesco.
Chairman Clive Garston said that in June last year, W7 products were in 56 Tesco stores, with them now in more than 1,300 shops across the various store formats, with a further expansion of the W7 full cosmetic displays in Tesco planned for later in the year.
The group's other brands were also performing well in the UK, he added.
“We are also seeing encouraging growth elsewhere,” Garston explained.
“In the US, for example, we have recently completed a trial launch of W7 products in 50 Francesca's stores where sales have exceeded expectations and we anticipate rolling out products across a significant portion of their 444 store estate later this year.
“E-commerce sales of W7 products across all markets for the first five months of the year were approximately three times the level in the same period in 2020 and we anticipate further significant growth, albeit from a modest base.”
Clive Garston said that, as the company had previously announced, pending approval by shareholders at the meeting on Friday, a final dividend of 3p per share would be paid on 5 July to shareholders on the register on 18 June.
“I am optimistic that these positive trends will continue and with cash today of approximately £6.6m and no debt, I believe we are well placed to deliver profitable future growth.”
At 1400 BST, shares in Warpaint London were up 17.14% at 164p.