Updates

Warpaint - £21m cosmetic acquisition

December 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Warpaint firmed after it said it had acquired Retra, a UK-based colour cosmetic business, for £21.2m (£16.2m cash plus new shares).Retra has a significant focus on cosmetic gift sets (51% of sales in 2016) principally for high street retailers and supermarkets including Boots, Superdrug and Asda. It also has three own brands: Technic, Body Collection and Man's Stuff. Exports represented 42% of sales.It has a good growth record with £2.3m pretax profit on sales of £17.5m in 2016, up from £0.9m on sales of £12.4m the year before.To fund the cash element, Warpaint has placed 11.1m new shares at 190p to raise £21.2m with the directors subscribing for £670,000 of shares. The acquisition is eps enhancing from day one. I r ...

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Victoria

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