Warpaint London (W7L) H2 2024 earnings summary

Executive summary

• Achieved record revenue of £101.6m, up 13% year-over-year, with strong growth across all key geographies and brands.

• Gross profit margin improved by 130bps to 41.2%, and profit before tax rose 31% to £23.8m compared to FY 2023.

• Maintained a debt-free, cash-generative position, ending the year with £21.9m in cash, including £14.0m held in escrow for the Brand Architekts acquisition.

• Proposed final dividend of 7.5p, bringing the total 2024 dividend to 11.0p, up from 9.0p in 2023.

• Completed the acquisition of Brand Architekts in February 2025, expected to bolster growth and deliver cost synergies.

Financial highlights

• Revenue increased to £101.6m (FY 2023: £89.6m), with UK up 8%, Europe up 22%, and US up 22% in local currency.

• Gross profit rose to £41.9m (FY 2023: £35.7m), with gross margin at 41.2% (FY 2023: 39.9%).

• Adjusted operating profit reached £24.8m, up from £18.8m in FY 2023.

• Profit before tax was £23.8m (FY 2023: £18.1m); basic EPS increased to 23.5p (FY 2023: 18.1p).

• Cash and cash equivalents at year-end were £21.9m (FY 2023: £9.1m), including escrowed funds.

Outlook and guidance

• Q1 2025 sales up 14% to £26.7m; excluding Brand Architekts, sales up 7%.

• Margins in Q1 2025 improved over FY 2024; cash at £17.3m as of April 2025.

• Board expects continued strong performance, with sales and profits to grow in line with previous expectations for 2025.

• Major retail expansions planned in Superdrug, Tesco, Boots, CVS, Tigota, and Etos.