Revolution Beauty Group shares rose on Tuesday after the group upped in annual forecasts and posted a pre-tax profit.
The London-listed group’s revenue increased by 20 per cent to £90.4million In the six months to the end of August, with UK sales growth of 14 per cent driven by revenues from Boots and Superdrug stores.
The business ended the period with a pre-tax profit of £400,000, against a loss of £13.7million in its first half.
Boost: Revolution Beauty Group shares rose on Tuesday after the group upped in annual forecasts
Revolution Beauty’s operating losses narrowed from £12.5million to £500,000 during the period amid ‘lower levels of exceptional costs’.
Revolution Beauty shares were up 3.97 per cent or 1.10p to 28.75p on Tuesday, having surged over 240 per cent in the last year.
The group enjoyed growth across all regions and ‘softer first-half year’ trading comparatives.
Revolution Beauty said it had made a ‘good start’ to the second-half and ahead of Christmas trading, has boosted its annual guidance.
It now expects adjusted EBITDA ‘to be not less than double-digit millions’ for the financial year, marking an increase from the previously guided high single digit millions. Sales growth is expected ‘to be in the high single digits’.
The results will be cheered by investors after two years of turmoil, with CFO Elizabeth Lake barely holding onto her job at Revolution’s most recent AGM in the wake of a shareholder revolt.
The Kent-based make-up company has had a turbulent two years since it went public, including shareholder showdowns and a stock exchange suspension.
Boohoo, Revolution’s biggest shareholder, was among the group of disgruntled investors who voted to remove Lake, former boss Bob Holt and ex-chairman Derek Zissman in June this year.
Lauren Brindley, the group’s chief executive, said: ‘With improved internal controls and the right leadership in place with clearer roles and responsibilities, momentum has built across the business in the first half of the year.
‘Our strengthened financial performance and the return to positive EBITDA represents a significant milestone in the next phase of this business, while new retail partnerships in the US and strengthened retail partnerships elsewhere around the world are representative of our operational progress.
‘Looking ahead, I believe there are significant and compelling opportunities for Revolution Beauty within a large and attractive market.’
Brindley will be unveiling a three-year strategic plan for the group in the new year.
On Monday, it was revealed that Avon is to open its first physical UK stores in its 137-year history.
The group said it would open its first stores in the UK under the Avon brand in the next two months, with its sales representatives running the ‘mini beauty boutiques’ as franchisees.
