Warpaint London (W7L) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was £40.5m, down 17.8% year-over-year, reflecting challenging trading conditions, order timing, and non-recurring prior year sales, partially offset by a £2.5m contribution from the newly acquired Barry M brand.

• Gross profit margin improved to 47.3%, up 230bps year-over-year, aided by sourcing strategies, new product development, and a one-off benefit from discounted Barry M inventory.

• Adjusted EBITDA was £6.8m, down 36.4% year-over-year, but the business remains profitable, cash-generative, and debt-free.

• Integration of Barry M was completed, contributing to group performance and expanding distribution.

• Interim dividend increased to 4.25p per share, up 6.3% year-over-year.

Financial highlights

• Revenue: £40.5m (H1 2025: £49.3m), down 17.8%.

• Gross margin: 47.3% (H1 2025: 45.0%), including a 150bps one-off from Barry M inventory.

• Adjusted EBITDA: £6.8m (H1 2025: £10.7m), down 36.4%.

• Profit before tax: £4.9m (H1 2025: £7.3m), down 33.2%.

• Cash at period end: £20.7m, up £3.7m from 30 June 2025.

Outlook and guidance

• FY26 revenue expected towards the lower end of market expectations (£103.3m–£112.6m); adjusted EBITDA forecasted within analyst range (£22.4m–£24.0m).

• H2 2026 expected to be significantly more weighted than prior years due to timing of large orders, Christmas gifting, ecommerce growth, and Barry M contribution.

• Q3 2026 sales expected to be £28.5m, up 5% year-over-year.

• Share buyback program of up to £2.5m commenced in July 2026.