Warpaint London (W7L) H1 2025 earnings summary

Executive summary

• Revenue reached £49.3m in H1 2025, up 7.6–8% year-over-year, driven by the Brand Architekts acquisition and international expansion despite challenging macroeconomic conditions.

• Gross profit margin improved by 250bps to 45.0%, with like-for-like margin (excluding Brand Architekts) up 300bps to 45.5%.

• Adjusted EBITDA was £10.8m, down 5–5.3% year-over-year, and profit before tax fell 41% to £6.4m, mainly due to £4.6m in non-cash FX losses and £1.3m in exceptional acquisition costs.

• Cash and cash equivalents at period end were £17.0m, including £14.0m held in escrow for the Brand Architekts acquisition, aided by £6.2m acquired from Brand Architekts.

• Interim dividend increased 14–14.3% to 4.0p per share.

Financial highlights

• Revenue increased to £49.3m from £45.8m in H1 2024, a 7.6–8% year-over-year rise.

• UK revenue up 15.9% to £18.0m; international revenue up 3.2% to £31.3m.

• Brand Architekts contributed £6.1m in H1 2025, 12% of group revenue.

• Adjusted EPS fell 13% to 8.5p, reflecting increased share count post-acquisition.

• Net cash flow from operations was £5.4m, up from a £2.0m outflow in H1 2024.

Outlook and guidance

• Full-year 2025 revenue expected between £107m and £112m, with adjusted EBITDA between £23.5m and £25.5m.

• H2 performance expected to be stronger, supported by price increases, store rollouts, and Christmas gifting.

• Cautious outlook due to weak UK consumer environment, US tariff uncertainty, and a key customer administration.