Updates

Warpaint - Barnstorming 500bps improvement in operating margin

May 2024

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.

Shares in Warpaint, which sells branded value cosmetics, shot to 490p, valuing it at £379m, after it beat even its recently raised expectations. Sales were up 40% to £89.6m, reflecting growth in all geographies: EU sales +60% to £45.1m, UK +18% to £32.4m and US sales +37% to £7.3m. Sales growth reflects pipe fill with new customers plus strong performance from existing customers through increased listings and store numbers - and it was especially the EU (Denmark, France, the Netherlands, Spain and Sweden with listings in Normal, Etos and Wibra) that was the swing factor. By the standards of this sector, where gross margins can be 20-30% and ebit margins 10%, Warpaint widened gross margins by 350 bps to 39.9% and operating margin ...

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Future - Returns to organic growth in Q2

Gaming Realms

Warpaint (October 2024)

Warpaint (February 2024)

Warpaint (December 2023)

Warpaint (July 2023)

Warpaint - Forecast busting outlook (May 2023)

Warpaint (April 2023)

Warpaint (February 2023)

Warpaint - Forecasts upgraded as international growth comes through (October 2022)

Warpaint (October 2019)

Warpaint (October 2018)

Warpaint (September 2018)

Warpaint (July 2018)

Warpaint - Eps forecast of 13.6p lifting to 16.7p (June 2018)

Warpaint - £21m cosmetic acquisition (December 2017)

Warpaint (October 2017)

Warpaint - US sales going gangbusters (August 2017)

Warpaint (July 2017)

Warpaint (June 2017)

Warpaint -Notes from meeting with Finance Director (April 2017)

Warpaint - Going global following IPO (January 2017)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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