Revolution Beauty has appointed a new chief executive as it published annual results showing losses fell amidst a turbulent period for the company.
Lauren Brindley will become the cosmetics firm’s boss on 18 September, having most recently been in charge of beauty and personal care at the American pharmacy giant Walgreens Boots Alliance.
Brindley also spent many years at Boots, where she was the head of its prestige beauty and fragrance division and the No.7 skincare brand.
Improvement: Revolution Beauty revealed pre-tax losses fell from £45.9million the previous year to £33.9million thanks largely to a drop in freight costs and stock provision charges
She replaces Bob Holt, who agreed earlier this summer, along with chairman Derek Zissman, to stand down following a row with online retailer Boohoo.
Boohoo, which is Revolution’s largest shareholder, was among the majority of investors who voted to remove the pair, as well as finance chief Elizabeth Lake, at an annual general meeting in June.
However, the three were reinstated hours later by an independent director, although Boohoo subsequently reached a deal that meant Holt and Zissman departed.
Alistair McGeorge, executive chairman of Revolution Beauty, said: ‘Lauren’s extensive knowledge of the beauty and retail industries, and proven track record of driving meaningful results, will be critical as we build Revolution Beauty into a global beauty leader.’
Brindley faces the major challenge of reviving a business that has struggled with slowing trade since going public on the London Stock Exchange two years ago.
Revolution reported on Thursday that its revenue only increased by £3.2million to £187.8million for the 12 months ending February.
Stronger store demand from rolling out new products in Boots and Walgreens stores helped offset declining turnover from digital partners caused by customers reducing stock levels.
Yet pre-tax losses fell from £45.9million the previous year to £33.9million thanks largely to a drop in freight costs and stock provision charges.
Following the announcement, Revolution Beauty Group shares had plummeted 17.1 per cent to 28.4p by Thursday afternoon.
Trading in the Kent-based firm’s shares was suspended last September when the group failed to publish accounts for the 2022 financial year on time.
An accounting probe found Revolution had inflated sales figures by £9million to meet its annual targets, while co-founder Tom Allsworth and former CEO Adam Minto provided loans or other investments without the board’s knowledge.
Revolution’s shares were eventually allowed to start trading again in late June.
Since then, though, the Financial Conduct Authority has launched an investigation into the business over suspected breaches of market abuse.
The company said it was ‘cooperating fully’ with the inquiry and would update the markets ‘in due course.’
Revolution has reported a bumper trading performance, with revenue soaring by 60 per cent in the first quarter.
The challenging economic backdrop could even benefit the firm, according to Julie Palmer, a partner at corporate restructuring specialist Begbies Traynor.
She said this was because, during such times, consumers tend to purchase cheaper luxuries instead of big-ticket items – a phenomenon known as the ‘lipstick effect.’
