TIDMW7L
RNS Number : 0565A
Warpaint London PLC
21 September 2022
21 September 2022
Warpaint London PLC
("Warpaint", the "Company" or the "Group")
Interim Results for the six months ended 30 June 2022
Record first half sales and significantly improved gross
margin
Warpaint London plc (AIM: W7L), the specialist supplier of
colour cosmetics and owner of the W7 and Technic brands is pleased
to announce its unaudited interim results for the six months ended
30 June 2022.
Financial Highlights
-- Strong growth in sales during the period to reach a record
first half level for the Group, reflecting the focus on growing
sales of the Group's branded products
-- Group sales increased by 37% to GBP25.2 million in H1 2022
(H1 2021: GBP18.4 million)
-- UK revenue increased by 17% to GBP10.4 million (H1 2021:
GBP8.9 million)
-- International revenue increased by 55% to GBP14.8 million
(H1 2021: GBP9.5 million)
-- Gross profit margin increased to 39.0% (H1 2021: 34.5%), despite
continued supply side price inflation and higher than historic
freight costs
-- Adjusted EBITDA of GBP4.4 (*) million (H1 2021: GBP2.1 (*)
million)
-- Adjusted profit from operations of GBP4.8 (**) million (H1
2021: GBP1.6 (**) million)
-- Statutory profit from operations of GBP3.5 million (H1 2021:
GBP0.3 million)
-- Cash of GBP4.3 million as at 30 June 2022 (30 June 2021: GBP6.7
million)
-- The board has declared an increased interim dividend of 2.6p
per share (2021 interim dividend 2.5p per share)
-- Consistent with previous years, the Group's financial performance
is expected to be second half weighted
* Adjusted for foreign exchange movements, share based payments
and exceptional items.
** Adjusted for exceptional costs of which there were GBP0.1
million in the period (H1 2021: GBP0.005 million), GBP1.1 million
of amortisation of intangible assets (H1 2021: GBP1.2 million) and
share based payments of GBP0.1 million (H1 2021: GBP0.1 million).
Adjusted numbers are close to the underlying cash flow performance
of the business which is regularly monitored and measured by
management.
Operational Highlights
-- Successful launch in Boots of 45 W7 products in an initial
80 stores in February 2022
-- Six new accounts opened in the US, including CVS, where a
significant Christmas 2022 order has also been received
-- Online sales continue to accelerate in the UK and the US,
with an increase of 44% in e-commerce sales in H1 2022 compared
to H1 2021
Post-Period End Highlights
-- Continued positive business momentum post period end, with
unaudited Group sales for the eight months to 31 August 2022
of GBP37.5 million (8 months to 31 August 2021: GBP27.1 million)
-- Revenue and adjusted PBT guidance for the full year increased
on 8 September 2022, reflecting this continued strong trading
momentum across the business. Adjusted profit before tax (adjusted
for exceptional costs, amortisation of intangible assets and
share based payments) is expected to be in excess of GBP9
million, on anticipated sales of at least GBP61 million, for
the year ending 31 December 2022
-- The Group's expansion strategy continues with planned launches
in H2 2022 and 2023 with new major retailers and the expansion
of the range of products stocked with certain existing customers,
particularly in the UK and the US
-- Launch of an initial range of 96 W7 products in 280 H-E-B
stores, a Texas, US, based supermarket group, from October
2022
-- Launch of a range of 60 W7 cosmetic products in 190 CVS stores,
in the US, from January 2023
-- To provide some assistance with increased living costs and
to recognise exceptional efforts in a record period for the
Group, all of the Group's 122 employees (which excludes the
board members) are being awarded a payment of GBP1,000 over
and above their normal remuneration in October 2022
Commenting, Sam Bazini Chief Executive, said:
"I am pleased that following the return of the Group to growth
in 2021 this trend has continued in the first half of 2022. We have
grown sales in the UK, continental Europe and elsewhere
internationally in the period, all at an improved margin, despite
supply side inflationary and other cost pressures.
"We have been, and continue to be, successful in both adding new
retailers to our list of customers and expanding the number of
products and outlets served with our existing major customers. I am
confident that this can continue and w e are working in partnership
with a number of our larger existing retailers, both in the UK and
internationally, to grow sales further. We are also in active
discussions with additional major retailers.
"We are well capitalised with a healthy balance sheet and have
significant opportunities for further growth, both already planned
with customers and additional ones in discussion. I am confident
that the Group will continue to perform well for the remainder of
the year and beyond."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018
Investor Webinar
Warpaint's management will be hosting an online presentation and
Q&A session at 5.30 p.m. BST today, Wednesday 21 September
2022. This session is open to all existing and prospective
shareholders. Those who wish to attend should register via the link
below and they will be provided with access details:
https://us02web.zoom.us/webinar/register/WN_B6FTpxwySIicNsb9e3l5Ww
Participants will have the opportunity to submit questions
during the session, but questions are welcomed in advance and may
be submitted to: warpaint@investor-focus.co.uk .
Enquiries:
Warpaint London c/o IFC
Sam Bazini - Chief Executive Officer
Eoin Macleod - Managing Director
Neil Rodol - Chief Financial Officer
Shore Capital (Nominated Adviser & Broker)
Patrick Castle, Daniel Bush - Corporate Advisory
Fiona Conroy - Corporate Broking 020 7408 4090
IFC Advisory (Financial PR & IR)
Tim Metcalfe, Graham Herring, Florence Chandler 020 3934 6630
Warpaint London plc
Warpaint sells branded cosmetics under the lead brand names of
W7 and Technic. W7 is sold in the UK primarily to retailers and
internationally to local distributors or retail chains. The Technic
brand is sold in the UK and continental Europe with a significant
focus on the gifting market, principally for high street retailers
and supermarkets. In addition, Warpaint supplies own brand white
label cosmetics produced for several major high street retailers.
The Group also sells cosmetics using its other brand names of
Man'stuff, Body Collection, Very Vegan, and Chit Chat.
CHIEF EXECUTIVE'S REVIEW
In the first half of 2022, the Group achieved a record level of
sales, reflecting the success of the Group's strategy of focusing
on growing sales of its branded product. This was achieved at a
much improved gross margin, despite a number of continuing
operational challenges being faced, particularly with regard to
supply side price inflation, and freight availability and cost.
Our strategy of producing a wide range of high quality cosmetics
at an affordable price remains our key focus, growing sales through
our existing customers' outlets and winning new customers with
significant sales footprints, both in the UK and internationally,
together with continuing to grow our online sales. The global
cosmetics market is increasingly seeing customers transferring to
more value orientated brands, such as those produced by the Group,
and I believe we are very well placed with our high quality focused
offering to capture further market share. The Group is also in
active discussions with new major retailers globally and with
certain existing customers, particularly in the UK and the US,
regarding expanding of the range of the Group's products
stocked.
Following the rationalisation of our brand portfolio in 2020,
removing from sale those small number of brands that were sub-scale
and did not have a compelling market position, the Group has
concentrated on its core W7, Technic, Body Collection, Man'stuff
and Chit Chat brands during the period, with profitable close-out
opportunities being taken where appropriate. In H1 2022 sales of
the Group's branded product accounted for 88% of revenue (H1 2021:
87%) with the remainder being close-out and a modest level of white
label cosmetics for certain major high street retailers.
W7
The Group's lead brand remains W7, with sales in H1 2022
increasing by 38%, accounting for 57% of total Group revenue (H1
2021: 57%). In the UK, W7 revenues were up 5% in H1 2022 compared
to H1 2021, and the strongest growth was seen in continental
Europe, with sales increasing by 124% compared to H1 2021.
W7 sales in the UK represented 34% of W7 sales in the period,
down from 45% in H1 2021, as stronger growth was experienced in
regions outside of the UK. However, W7 sales in the UK continued to
grow, assisted by increased sales into Tesco, together with a
growth in sales from the Group's other larger customers in the UK.
W7 sales in the UK also received a further boost with Boots
starting to stock a range of approximately 45 W7 products in an
initial 80 stores from February 2022. Sales to date from Boots have
been encouraging and we anticipate growth in the presence with
Boots in due course.
Technic
In the five years since the Company's acquisition of Retra
Holdings Limited ("Retra") and its Technic, Body Collection and
other brands in November 2017, the focus has been on growing the
sales of all year-round cosmetics in addition to its strong and
established Christmas gifting proposition. It was therefore
pleasing to see sales of Technic and the other Retra brands,
including Body Collection, grow by 37% in H1 2022.
In H1 2022, UK revenues from the Retra brands were up 42% on H1
2021, with strong growth also seen in continental Europe, with
sales up 36%. Sales of the Retra brands in the US and the rest of
the world remain small in the context of the Group as a whole,
representing under 2% of Group revenues. Overall sales of the Retra
brands were 31% of total Group revenue (H1 2021: 30%).
The Retra business also produces and sells own brand white label
cosmetics for several major high street retailers, including Asda
in the UK. These sales grew by 51% in H1 2022, but remain a small
proportion of overall Group sales, being 1% of Group revenue (H1
2021: 1%).
Close-out
Close-out sales continue not to be a core focus for the Group,
although advantage is taken of profitable close-out opportunities
as they become available. The close-out division was a similar
proportion of Group sales in the first half of 2022, compared to H1
2021, representing 11% of the overall revenue of the Group (H1 2021
12%). Whilst not a core focus, this side of the business continues
to provide a significant and profitable source of intelligence in
the colour cosmetics market and access to new market trends.
E-commerce
In addition to growing sales through the W7 and Technic brands'
own bespoke e-commerce sites, the Group has continued to focus on
growing sales of our brands in the UK and the US on Amazon, and in
China through official W7 brand stores owned by the Group on Taobao
Mall (Tmall), the most visited B2C online retail platform in China
and Xiaohongshu (Red), one of China's foremost social media,
fashion and luxury shopping platforms. Online sales grew in all
regions in H1 2022 to reach GBP0.63 million (H1 2021: GBP0.44
million), an increase of 44%, at a similar operating margin to
other Group sales. Online sales for the eight months to 31 August
increased further, up by 59% to GBP0.90 million compared to the
same period in 2021 (eight months to 31 August 2021 GBP0.57
million).
Customers & Geographies
The largest markets for sales of our Group brands are in the UK,
continental Europe and Australia, with a growing presence in the
US. In H1 2022 our top ten customers represented 66% of revenues
(H1 2021: 55%). Group sales are now made in 46 countries.
UK
Group sales in the UK were up by 17% in H1 2022, with growth in
sales of both our lead brand W7, up 5%, and the Retra brands, which
increased by 42%.
The top ten UK Group customers accounted for 80% of UK sales in
H1 2022 (H1 2021: 74%).
Europe
Prior to the onset of the Covid-19 pandemic, continental Europe
was for some time an area of excellent growth for the Group.
Following significantly reduced demand caused by country wide
lockdowns in 2020, the gradual opening up, but with some continuing
lockdowns, boosted Group sales in Europe in H1 2021 by 28% compared
to the same period in 2020. In H1 2022 we have seen further
recovery, together with additional growth, particularly through
increased sales to certain existing customers as the number of
these customers stores served by the Group was expanded.
In H1 2022 continental European sales increased by 84%, making
this the largest sales region for the Group, accounting for 48% of
Group sales in H1 2022.
Sales for the Group's brands into Europe are mainly to France,
Denmark, Spain and Sweden and during the period strong growth was
seen particularly in sales to customers headquartered in
Scandinavia.
US
Sales in the US in H1 2022 in US$ terms were at the same level
as H1 2021 at US$1.7 million. In the US 88% of sales in H1 2022 (H1
2021 79%) were from the sale of the Group's brands. Additionally,
we continue to focus on growing our US online sales via Amazon
FBA.
The focus in the US is to increase the sales of the Group's
brands as the emphasis on close-out in our business continues to
reduce. Post period end we are pleased to have secured agreements
to launch an initial range of 96 W7 products in 280 H-E-B stores, a
Texas based supermarket group, from October 2022; and to launch a
range of 60 W7 cosmetic products in 190 CVS stores, in the US, from
January 2023.
Rest of the World
Sales in the rest of the world for the Group in the period
reduced by 21%, primarily as a result of the timing of sales orders
in Australia, which is a key country for Warpaint in the rest of
the world region. The rest of the world region accounted for 6% of
Group sales in H1 2022 (H1 2021: 10%) and the focus continues to be
on Australia, China and other countries where profitable sales in
appropriate volumes can be made.
Dividend
In accordance with the Group's policy to continue to pay
appropriate dividends, the board is pleased to declare an increased
interim dividend of 2.6p per share (2021 interim dividend 2.5p per
share) which will be paid on 25 November 2022 to shareholders on
the register at 11 November 2022. The shares will go ex-dividend on
10 November 2022.
People - Cost of Living Bonus
The board recognises that we are living in difficult times, with
inflationary pressures causing significant increases in the cost of
living. To provide some assistance with these increased living
costs and to recognise the exceptional efforts in a record period
for the Group, all of the Group's 122 employees (which excludes the
board members) are being awarded a payment of GBP1,000 over and
above their normal remuneration in October 2022.
Summary and Outlook
The Group has had a strong first half of 2022, with a record
level of first half sales delivered. That these sales have been
achieved at a significantly improved gross margin, despite supply
side inflationary pressures is particularly pleasing. To date the
Group has been largely able to mitigate supply side inflation with
price rises where appropriate and we remain confident that margins
can be maintained going forward.
We have seen good growth in the UK, significant expansion in
continental Europe and have secured a number of relationships with
significant retailers in the US. Warpaint is a global business with
the capacity, expertise and strategy, coupled with balance sheet
strength, to drive future growth from both our existing and new
customers.
As in previous years, the Group's sales are expected to remain
second half weighted, reflecting Christmas seasonal sales. As of 30
June 2022, the Group had an order book of GBP12.9 million (30 June
2021: GBP9.9 million), which will be delivered during H2 2022. This
includes a significant increase in Christmas orders, in particular
for Asda in the UK and for retailers in the US.
I anticipate updating further on our progress later in the year
and with significant opportunities for further growth, both already
secured and in discussion, I am confident that the Group will
continue to perform well for the remainder of the year and
beyond.
Sam Bazini
Chief Executive Officer
21 September 2022
CHIEF FINANCIAL OFFICER'S REVIEW
The first half of 2022 has seen the Group achieve results
significantly ahead of the first half of 2021, with improved sales,
gross margin and profit before tax. The Group continues its
strategy of building the W7 and Technic brands in the UK and
internationally, and we remain focused on margin, being debt free,
and generating cash.
Headline results, shown below, represent the performance
comparisons between the consolidated statements of income for the
half years ended 30 June 2022 and 30 June 2021.
Revenue
Total revenue increased by 37% from GBP18.4 million in H1 2021
to GBP25.2 million in H1 2022.
Company branded sales were GBP22.1 million in the first half of
the year (H1 2021: GBP16.1 million). Our W7 brand had sales in the
first half of the year of GBP14.5 million (H1 2021: GBP10.5
million). Our Technic brand contributed sales of GBP7.6 million in
the first half of the year (H1 2021: GBP5.5 million).
Our Retra subsidiary business had sales of retailer own brand
white label cosmetics of GBP0.3 million in the first half of the
year (H1 2021: GBP0.2 million). The white label business is
traditionally cost competitive and Retra chooses which projects to
undertake based on commercial viability, in particular margin.
The close-out business had sales in the first half of the year
of GBP2.8 million (H1 2021: GBP2.1 million), nevertheless the
Group, in line with its strategy, is reducing its focus on
close-out opportunities.
In the UK sales increased by 17% to GBP10.4 million (H1 2021:
GBP8.9 million). Internationally, revenue increased 55% from GBP9.5
million in H1 2021, to GBP14.8 million in H1 2022. In Europe Group
sales increased by 84% to GBP12.1 million (H1 2021: GBP6.5
million). In the rest of the world Group sales decreased by 21% to
GBP1.4 million (H1 2021: GBP1.7 million). In the US Group sales
increased by 7% to GBP1.3 million (H1 2021: GBP1.2 million).
E-commerce sales continued to grow in the first half of the year
and now represent 2.5% or GBP0.6 million of group revenue (2021:
2.4% / GBP0.4 million).
Product Gross Margin
Gross margin was 39.0% for the half year compared to 34.5% in H1
2021.
Our management teams across the Group were swift to recognise
and navigate cost headwinds that started in 2021. New product
development, sourcing, and an inflationary price increase to
customers at the start of the year, have all helped achieve a
significant gross margin improvement in the first half of 2022.
We remain focused on improving gross margin where possible in
all our businesses and are making good use of our Hong Kong buying
office to ensure this happens. To counter currency pressure, we
continue to move production to new factories of equal quality to
retain or improve margin and have a natural hedge from our US
dollar revenue which is growing.
At 31 December 2021 options were in place for the purchase of
US$27 million at US$1.3849/GBP, this has helped to protect our
margin in the turbulent foreign exchange markets. Since the start
of this year, we have purchased more options to help protect our
gross margin in 2022.
As we enter the second half of the year the US dollar has
strengthened, at the same time container freight rates priced in
dollars have fallen by half compared to rates in 2021. The currency
options we have for the rest of the year, the falling container
rates, new product development, sourcing, and growing sales in the
USA, will all help to protect our margin from the strengthening
dollar.
In the USA our strategy to exit sales of locally sourced
close-out brands and to focus on the sale of our Group brands was
completed in 2021. This has helped improve the gross margin in the
USA to be more in line with the rest of the Group and this has
improved further in the first half of the year.
Operating Expenses
Total operating expenses before exceptional items, amortisation
costs, depreciation, foreign exchange movements and share based
payments, grew more slowly than sales, increasing by 27.3% to
GBP5.4 million in the first half of the year (H1 2021: GBP4.3
million). Operating costs as a percentage of sales reduced from 23%
to 21%.
The overall increase of GBP1.1 million year on year was
necessary to support the growth of the business and was made up of
increases in wages and salaries, office costs, the spend on PR and
marketing as e-commerce sales continue to grow, travel costs,
professional fees and the cost of a larger sales team based in the
US.
Warpaint remains a business with most operating expenses
relatively fixed and evenly spread across the whole year. We
continue to monitor and examine significant costs to ensure they
are controlled and strive to reduce them. In addition, the
increased scale of the business has given the Group increased
buying power.
Adjusted EBITDA
The board considers Adjusted EBITDA (adjusted for foreign
exchange movements, share based payments and exceptional items) a
key measure of the performance of the Group and one that is more
closely aligned to the success of the business. Adjusted EBITDA for
the half year to 30 June 2022 was GBP4.4 million (30 June 2021:
GBP2.1 million).
Profit Before Tax
Group profit before tax for the half year to 30 June 2022 was
GBP3.5 million (H1 2021: GBP0.2 million). The material changes in
profitability between 30 June 2021 and 2022 were:
Effect on Profit
GBP3.4 million
* Gross margin on increase in sales in H1 2022
(GBP1.1) million
* Increase in operating expenses (see above heading)
GBP1.0 million
* FX gain in H1 2022 of GBP1.13 million (H1 2021:
GBP0.16 million)
Exceptional Items
Exceptional costs in H1 2022 included a GBP0.11 million
provision for content use and associated legal fees (H1 2021
included GBP5,000 of legal costs).
The Group has recently agreed a settlement regarding a dispute
with a third party relating to the historic use of content on the
Group's social media platforms in the period from 2018 through to
early 2021. The total settlement including associated legal costs
is expected to total GBP480,000, of which GBP370,000 was provided
for in the year to 31 December 2021. The payment and the
restriction of content use will not affect the ongoing operations
of the Group's businesses.
Earnings Per Share
The statutory interim basic and diluted earnings per share were
3.54p and 3.53p respectively in H1 2022 (H1 2021: 0.18p and
0.18p).
The adjusted interim basic and diluted earnings per share before
exceptional items and amortisation costs were 5.07p and 5.05p
respectively in H1 2022 (H1 2021: 1.75p and 1.75p).
LTIP, EMI & CSOP Share Options
On 25 May 2021 CSOP share options were granted over a total of
400,000 ordinary shares of 25p each in the Company under the
Warpaint London PLC Company Share Option Plan and the Warpaint
London plc Enterprise Management Incentive Scheme. The options
provide the right to acquire 400,000 ordinary shares at an exercise
price of 122.0p per ordinary share.
The LTIP, EMI & CSOP share options had an immaterial
dilutive impact on earnings per share in the period. The
share-based payment charge of the LTIP, EMI and CSOP share options
for the half year to 30 June 2022 was GBP0.09 million (H1 2021:
GBP0.07 million) and has been taken to the share option
reserve.
Cash Flow and Cash Position
Net cash flow generated from operating activities was GBP(0.4)
million compared to GBP2.8 million in H1 2021. The Group's cash
balance decreased by GBP2.4 million to GBP4.3 million as at 30 June
2022 (30 June 2021: GBP6.7 million). The fall in cash year on year
was due to the Group investing in inventory to insure we continue
to meet customer delivery expectations whilst global distribution
issues remain.
We expect capital expenditure requirements of the Group to
remain low, however as part of our strategy to grow market share in
the UK and US there will be occasions where investment in store
furniture is required to secure that business. In H1 2022, GBP0.4
million (H1 2021: GBP0.1 million) was spent on store furniture, on
new computer software and equipment, warehouse racking, and other
general office fixtures and fittings and plant upgrades.
Balance Sheet
The Group's balance sheet remains in a very healthy position.
Net assets totalled GBP39.0 million at 30 June 2022, with the
majority made up of liquid assets of inventory, trade receivables
and cash. Included in the balance sheet is GBP7.3 million of
goodwill and GBP1.2 million of intangible fixed assets arising from
acquisition accounting.
Goodwill represents the excess of consideration over the fair
value of the Group's share of the net identifiable assets of the
acquired business / cash generating units at the date of
acquisition. The carrying value at 30 June 2022 of GBP7.3 million
included Treasured Scents Limited (Close-out business) GBP0.5
million, Retra Holdings Limited GBP6.2 million and Marvin Leeds
Marketing Services, Inc. GBP0.6 million. Management have performed
a mid-year review at 30 June 2022 and have concluded that no
impairment is indicated for Treasured Scents Limited, Retra
Holdings Limited or Marvin Leeds Marketing Services, Inc. as the
recoverable amount exceeds the carrying value.
The balance sheet also includes GBP5.4 million of right-of-use
assets, this is the inclusion of the Group leasehold properties,
now recognised as right-of-use assets as directed by IFRS 16. An
equivalent lease liability is included of GBP5.6 million at the
balance sheet date.
Trade receivables are monitored by management to ensure
collection is made to terms, to reduce the risk of bad debt and to
control debtor days, which have improved on the prior half year.
Trade receivables, excluding other receivables, at 30 June 2022
were GBP7.4 million (30 June 2021: GBP6.2 million). The provision
for bad and doubtful debts carried forward is GBP0.12 million/1.6%
of gross trade receivables (30 June 2021: GBP0.06
million/1.0%).
Inventories at 30 June 2022 were GBP21.9 million (30 June 2021:
GBP16.7 million). The rise in inventory is a function of growth in
the business and to ensure delivery disruption is avoided for our
customers. One of the Group's unique selling propositions is that
it can deliver a full range of colour cosmetics to our customers,
in good time all year round. Having appropriate inventory levels is
vital to providing that service. The provision for old and slow
inventory was GBP0.4 million/1.9% at 30 June 2022 (30 June 2021:
GBP0.7 million/4.2%). Across the Group we have worked hard in the
last year to sell through older stock lines, allowing our provision
for old and slow inventory to fall 2.3% in percentage terms. Our
Group policy is to provide for 50% of the cost of perishable items
that are over two years old. However, we remain comforted by the
fact that many such items in the normal course of business are
eventually sold through our close-out division without a loss to
the Group.
Included within borrowings and lease liabilities is an invoice
and stock finance facility used to help fund imports in our gifting
business. At 30 June 2022 the outstanding balance on the invoice
and stock finance facility was GBP1.4 million (30 June 2021:
GBPnil).
Working capital increased by GBP4.9 million from 30 June 2021 to
30 June 2022. The main components were an increase in inventory of
GBP5.3 million, an increase in trade and other receivables of
GBP2.3 million, a decrease in cash of GBP2.4 million, a decrease in
trade and other payables of GBP1.1 million, and an increase in the
invoice and stock finance facility of GBP1.4 million.
Foreign Exchange
The Group imports most of its finished goods from China paid for
in US dollars, which are purchased throughout the year at spot as
needed, or by taking forward purchase foreign exchange options when
rates are deemed favourable, and with consideration for the budget
rate set by the board for the year. Similarly, foreign exchange
options are taken to sell forward our expected Euro income in the
year to ensure our sales margin is protected.
We started 2022 with options in place for the purchase of US$27
million at US$1.3849, and the sale of EUR3.9 million @ EUR1.1558 (1
January 2021: US$18 million @ US$1.3260/GBP, and EUR5.1 million @
EUR1.1077/GBP).
We have a natural hedge from sales to the US which are entirely
in US dollars, in H1 2022 these sales were US$1.7 million (H1 2021:
US$1.7 million).
Together with sourcing product from new factories where it makes
commercial sense to do so, new product development, and by buying
US dollars when rates are favourable, we are able to mitigate the
effect of a strong US dollar against sterling.
Dividend
The board is pleased to have declared an increased interim
dividend of 2.6p per share which will be paid on 25 November 2022
to shareholders on the register at 11 November 2022. The shares
will go ex-dividend on 10 November 2022.
Neil Rodol
Chief Financial Officer
21 September 2022
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 Months 6 Months Year ended
ended ended 31 December
Notes 30 June 30 June 2021
2022 2021
GBP'000 GBP'000 GBP'000
------------------------------------ -------- ------------------- ------------------- -------------
Revenue 25,197 18,417 50,003
Cost of sales (15,359) (12,064) (33,095)
------------------------------------ -------- ------------------- ------------------- -------------
Gross profit 9,838 6,353 16,908
Administrative expenses 3 (6,305) (6,039) (13,095)
Other operating income - - 2
Analysed as:
Adjusted profit from operations(1) 4,791 1,588 6,972
Amortisation (1,063) (1,204) (2,394)
Exceptional items 3 (109) (5) (586)
Share based payments (86) (65) (177)
------------------------------------ -------- ------------------- ------------------- -------------
Profit from operations 3,533 314 3,815
------------------------------------ --------
Finance expenses 4 (79) (148) (90)
------------------------------------ -------- ------------------- ------------------- -------------
Profit before tax 3 3,454 166 3,725
Tax expense 5 (737) (31) (895)
------------------------------------ -------- ------------------- ------------------- -------------
Profit for the period attributable
to equity holders of the
parent company 2,717 135 2,830
Other comprehensive income
(net of tax):
Exchange gain on translation
of foreign subsidiary 54 14 (4)
Total comprehensive income
for the period attributable
to equity holders of the
parent company 2,771 149 2,826
=================== =================== =============
Basic earnings per share
(pence) 6 3.54 0.18 3.69
------------------- ------------------- -------------
Diluted earnings per share
(pence) 6 3.53 0.18 3.68
------------------- ------------------- -------------
Note 1 - Adjusted profit from operations is calculated as
earnings before interest, taxation, amortisation, impairment costs,
share based payments and exceptional items
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at 30 As at 30 As at 31
June June December
2022 2021 2021
GBP'000 GBP'000 GBP'000
----------------------------- ------ -------------- -------------- --------------
ASSETS
Non-current assets
Goodwill 7,274 7,274 7,274
Intangible assets 1,188 3,434 2,260
Property, plant and
equipment 1,409 1,198 1,385
Right-of-use assets 5,382 3,205 3,073
Deferred tax assets 580 569 500
-------------- -------------- --------------
15,833 15,680 14,492
Current assets
Inventories 21,944 16,687 18,139
Trade and other receivables 10203 7,898 10,322
Cash and cash equivalents 4,313 6,723 4,072
Derivative financial
instruments 1,158 41 545
--------------
37,618 31,349 33,078
-------------- -------------- --------------
Total assets 53,451 47,029 47,570
-------------- -------------- --------------
LIABILITIES
Current liabilities
Trade and other payables 6,100 7,244 6,293
Borrowings and lease
liabilities 2,184 625 610
Corporation tax payable 999 413 1,050
Provisions - - 370
--------------
9,283 8,282 8,323
Non-current liabilities
Borrowings and lease
liabilities 4,803 2,695 2,537
Deferred tax liabilities 355 771 557
--------------
5,158 3,466 3,094
-------------- -------------- --------------
Total liabilities 14,441 11,748 11,417
-------------- -------------- --------------
NET ASSETS 39,010 35,281 36,153
============== ============== ==============
EQUITY
Share capital 19,188 19,187 19,188
Share premium 19,360 19,359 19,360
Merger reserve (16,100) (16,100) (16,100)
Foreign exchange reserve 139 103 85
Share option reserve 1,896 1,698 1,810
Retained earnings 14,527 11,034 11,810
-------------- -------------- --------------
Total equity attributable
to
shareholders 39,010 35,281 36,153
============== ============== ==============
CONSOLIDATED STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December
Notes 2021
GBP'000 GBP'000 GBP'000
---------------------------------- ------- --------------- --------------- ------------
Profit before tax for the
period 3,454 166 3,725
Adjusted by:
Interest paid 4 79 148 90
Depreciation of property,
plant and equipment 3 770 683 1,338
Amortisation of intangible
assets 3 1,077 1,204 2,394
Net interest expense
Share based payment 86 65 177
Movement in inventories (3,805) (2,274) (3,726)
Movement in trade and other
receivables 39 1,290 (1,135)
Movement in trade and other
payables (561) 2,174 3,542
Movement in derivative financial
instruments (613) (401) (905)
Other adjustments - (84)
Foreign exchange translation
differences 54 15 (4)
--------------- --------------- ------------
Cash inflow generated from
operations 580 3,070 5,412
Income tax paid (990) (310) (325)
Cash flows from operating
activities (410) 2,760 5,087
Purchase of property, plant
and equipment (417) (122) (596)
Purchase of intangible assets (6) (3) (3)
Cash flows used by investing
activities (423) (125) (599)
Proceeds from issued share
capital - - 2
Principal elements of lease
payments (279) (591) (933)
Repayment of borrowings - (48) (48)
Increase in stock and invoice
finance facilities 1,432 - -
Interest paid (79) (148) (90)
Dividends - - (4,222)
--------------- --------------- ------------
Cash flows used by financing
activities 1074 (787) (5,291)
Net change in cash and cash
equivalents 241 1,848 (803)
Cash and cash equivalents
at beginning of period 4,072 4,875 4,875
--------------- --------------- ------------
Cash and cash equivalents
at end of period 4,313 6,723 4,072
=============== =============== ============
Cash and cash equivalents
consists of:
Cash and cash equivalents 4,313 6,723 4,072
--------------- --------------- ------------
4,313 6,723 4,072
=============== =============== ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Merger Foreign Share Retained
capital Premium reserve exchange option earnings Total
reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- -------- --------- -------- --------- -------
As at 1 January 2021 19,187 19,359 (16,100) 89 1,633 13,202 37,370
On translation of foreign
subsidiary - - - 14 - - 14
Profit for the period - - - - - 135 135
---------------------------- -------- -------- -------- --------- -------- --------- -------
Total comprehensive income
for the period - - - 14 - 135 149
---------------------------- -------- -------- -------- --------- -------- --------- -------
Transactions with owners
Share based payments - - - - 65 - 65
Dividends paid - - - - - (2,303) (2,303)
Total transactions with
owners - - - - 65 (2,303) (2,238)
---------------------------- -------- -------- -------- --------- -------- --------- -------
As at 30 June 2021 19,187 19,359 (16,100) 103 1,698 11,034 35,281
---------------------------- -------- -------- -------- --------- -------- --------- -------
As at 1 January 2021 19,187 19,359 (16,100) 89 1,633 13,202 37,370
Equity shares issued 1 1 - - - - 2
On translation of foreign
subsidiary - - - (4) - - (4)
Profit for the year - - - - - 2,830 2,830
Total comprehensive income
for the year 1 1 - (4) - 2,830 2,828
---------------------------- -------- -------- -------- --------- -------- --------- -------
Transactions with owners
Share based payments - - - - 177 - 177
Dividends paid - - - - - (4,222) (4,222)
Total transactions with
owners - - - - 177 (4,222) (4,045)
---------------------------- -------- -------- -------- --------- -------- --------- -------
As at 31 December 2021 19,188 19,360 (16,100) 85 1,810 11,810 36,153
---------------------------- -------- -------- -------- --------- -------- --------- -------
As at 1 January 2022 19,188 19,360 (16,100) 85 1,810 11,810 36,153
On translation of foreign
subsidiary - - - 54 - - 54
Profit for the period - - - - - 2,717 2,717
Total comprehensive income
for the period - - - 54 - 2,717 2,771
---------------------------- -------- -------- -------- --------- -------- --------- -------
Transactions with owners
Share based payments - - - - 86 - 86
Total transactions with
owners - - - - 86 - 86
---------------------------- -------- -------- -------- --------- -------- --------- -------
As at 30 June 2022 19,188 19,360 (16,100) 139 1,896 14,527 39,010
============================ ======== ======== ======== ========= ======== ========= =======
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
The consolidated interim financial information for the 6 months
to 30 June 2022 has been prepared in accordance with the
measurement and recognition principles of UK adopted international
accounting and accounting policies that are consistent with the
Group's Annual report and Accounts for the year ended 31 December
2021 and that are expected to be applied in the Group's Annual
Report and Accounts for the year ended 31 December 2022. They do
not include all of the information required for the full financial
statements and should be read in conjunction with the 2021 Annual
Report and Accounts which were prepared in accordance with UK
adopted international accounting standards.
The comparative financial information for the year ended 31
December 2021 in this interim report does not constitute statutory
accounts for that period under section 435 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2021 have
been reported on by the Group's auditors and delivered to the
Registrar of Companies.
The auditors' report on the accounts for the year ended 31
December 2021 was unqualified, did not draw attention to any
matters by way of emphasis, and did not contain a statement under
498(2) or 498(3) of the Companies Act 2006.
2. Changes in significant accounting policies
The accounting policies applied in these interim financial
statements are the same as those applied in the Group's
consolidated financial statements as at and for the year ended 31
December 2021.
3. Profit from operations
Profit from operations is arrived at after charging/
(crediting):
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December
2021
GBP'000 GBP'000 GBP'000
------------------------------ ---------------- ---------------- -------------
Depreciation of property,
plant and equipment 393 344 648
Amortisation of right-of-use
assets 377 339 690
Amortisation of intangible
assets 1,077 1,204 2,394
Write down inventories at
net realisable value (90) 167 (5)
Exchange differences (1,126) (163) (614)
Exceptional costs 109 5 586
================ ================ =============
4. Finance expenses
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December
2021
GBP'000 GBP'000 GBP'000
-------------------------- ---------------- ---------------- -------------
Interest on loans - 64 5
Lease liability interest 63 43 84
Other interest 16 41 1
---------------- ---------------- -------------
Finance expenses 79 148 90
================ ================ =============
5. Tax expenses
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December
2021
GBP'000 GBP'000 GBP'000
------------------------------------ ---------------- ---------------- -------------
Current tax expense
Current income tax charge 939 248 1,262
Adjustment in respect of - - -
previous periods
---------------- ---------------- -------------
1,262
Deferred tax expense
Relating to original and
reversal of temporary differences (202) (217) (367)
---------------- ---------------- -------------
Total tax in income statement 737 31 895
================ ================ =============
6. Earnings per share
Profit for the period used in the calculation of the basic and
diluted earnings per share:
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December
2021
GBP'000 GBP'000 GBP'000
-------------------------- ---------------- ---------------- -------------
Profit after tax for the
period 2,717 135 2,830
================ ================ =============
The weighted average number of shares for the purposes of
diluted earnings per share reconciles to the weighted average
number of shares used in the calculation of basic earnings per
share as follows:
Unaudited Unaudited Audited
6 Months ended 6 Months ended Year ended
30 June 2022 30 June 2021 31 December
2021
--------------------------------- ---------------- ---------------- -------------
Weighted average number
of shares
Weighted number of ordinary
shares for the purpose of
basic earnings per share 76,751,187 76,749,999 76,751,187
Potentially dilutive shares
awarded 278,693 251,863 62,699
----------------
Weighted number of ordinary
shares for the purpose of
diluted earnings per share 77,029,880 77,001,862 76,813,886
---------------- ---------------- -------------
Basic Earnings per share
(pence) 3.54 0.18 3.69
Diluted earnings per share
(pence) 3.53 0.18 3.68
================ ================ =============
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFVDADIIFIF
(END) Dow Jones Newswires
September 21, 2022 02:00 ET (06:00 GMT)
Warpaint London (LSE:W7L)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Warpaint London (LSE:W7L)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
