Warpaint London (W7L) H2 2025 earnings summary

Executive summary

• Achieved record revenue of £105.1m for FY 2025, up 3% year-over-year, with improved gross margin despite challenging trading conditions.

• Completed and integrated the Brand Architekts acquisition, contributing positively to Adjusted EBITDA.

• Direct online sales grew 38% to £11.6m, now 11% of total sales.

• Maintained a strong balance sheet, remaining debt-free and increasing cash to £16.0m.

• Proposed total dividend for 2025 is 13.0p, up from 11.0p in 2024.

Financial highlights

• Revenue increased to £105.1m (FY 2024: £101.6m), up 3% year-over-year.

• Gross profit margin improved to 42.6% (up 140bps YoY).

• Adjusted EBITDA was £21.3m, down 15% year-over-year.

• Profit for the period was £14.4m, down from £18.2m in FY 2024.

• Basic EPS was 17.8p (2024: 23.5p); Adjusted EPS was 16.7p (2024: 22.3p).

Outlook and guidance

• Q1 2026 sales were £26.1m, down from £32.6m in the prior year, but April 2026 sales exceeded April 2025, indicating signs of recovery.

• 2026 sales expected to be more second-half weighted due to timing of large orders and customer rollouts.

• Expansion planned in Europe (notably Germany), South America, and India.

• Continued brand sales momentum and significant expansion opportunities anticipated for 2026.