Warpaint London Share Chat (W7L)

Interesting trading today. Several sizeable blocks, including one of over 166k shares, have changed hands while W7L continues to hold around 210p. Encouraging to see this volume being absorbed without any material weakness, which is often a healthier backdrop than sharp moves on light volume.

The macro backdrop also looks a little friendlier than it did a few months ago.

Lower oil prices, easing inflation concerns and stabilising consumer confidence should be more supportive for an affordable cosmetics business than persistent inflation shocks.

Dividend payment date next week, should bring some traction while lower energy prices here can help with disposable income.

Brent prices continuing to go down, hopefully further reducing general costs including shipping 🤞

Another quietly encouraging development today.

The headline is the contract renewal, but the more interesting point for me is that Martyn Ward has now been appointed Group Head of Sales with responsibility for coordinating all Group sales activities across the Group.

This comes immediately after management confirmed at the AGM:

• Q2 sales ahead of last year

• improving margins

• £20.6m cash and no debt

• encouraging early Rossmann sales

• unchanged FY expectations

With Barry M now added to the portfolio and opportunities developing through Rossmann, Walmart and Ulta, the appointment suggests management remains focused on driving growth and expanding distribution rather than simply integrating recent acquisitions.

It is also worth noting that Paul Hagon has now stepped down from the Board following the contract renewal, which simplifies the governance structure while retaining the Ward & Hagon team’s involvement through a performance-linked commercial arrangement.

Not a transformational RNS on its own, but it appears consistent with the broader message from last week’s AGM that the focus remains firmly on growth.

Let's not forget that the dividend is arriving on Friday so we could well imagine that a lot of this gets reinvested to give some upwards pressure to the SP.

I am very tempted to add at these prices but am holding fire for now just in case it gets cheaper.

It is borring time as no new and the war on and off fighting. We are sure this is a good management and business on its correct recover. As long as end of this year report we will see this share fly .

Agreed. The share price has drifted lower despite no obvious deterioration in the underlying business. At current levels, the risk/reward appears increasingly asymmetric.

Share price drifting down for no good reason. Generally that means Buying Opportunity.

I would be buying more at current low price 200p, but already heavily invested.

They are more hands on than management consultants. Given their background in clearance and the discount sector, the Warpaint team has credited Ward & Hagon with getting them into Tesco/Boots etc. Going forward, looks like Martin Ward will be leading the group's sales function, which is understandable given that the group now has four sales teams that need to be joined up to not p!ss off their customers.

“Meanwhile in the RNS did anyone look at the amount these management consultants are being paid? Or the fact they are related parties and therefore have been forced to disclose?”

In a company majority owned by founders (~40% in W7L), share price performance is everything and even looking at this specific contract, large chunk of it is performance based:

“Ward & Hagon has an opportunity under the Contract to earn up to £300,000 per annum through non-discretionary performance related sales bonuses and commissions”

Very strange board this.

Most of the posts are entirely AI generated. Absurdly high number of recommends.

Mancunian77, TysonX, AlexTrader0. Those accounts are all managed by the same person, who will also be using a multi account bots to boost the bullish AI guff.

Meanwhile in the RNS did anyone look at the amount these management consultants are being paid? Or the fact they are related parties and therefore have been forced to disclose?

Interesting post from ADVFN today:

nawaralsaadi17 Jun '26 - 15:37 - 4793 of 4793

9 0

I regularly track social media chatter around Warpaint brands, and of late there has been a surge of influencer videos for Technic products on YouTube/TikTok and the like, many of which are in Spanish (and some in French). You can check them yourself by going to YouTube and searching for “Technic” “Makeup” (filter for this month). Some of the videos appear independent of Warpaint, while other influencers are explicitly stating that Technic is sending them free samples. I have been tracking such social media chatter for over a year, and I’ve never seen as much chatter around any of Warpaint brands happening within a such a narrow period of time, all within the last month or so.

Another encouraging development today.

Schroders have increased their holding from 10.04% to 11.09%, taking their position to almost 9 million shares.

What I find particularly interesting is that this increase became reportable at the same time as the AGM update highlighting Q2 sales ahead of last year, improving margins, unchanged guidance, encouraging Rossmann sales and a cash balance of £20.6m with no debt.

One of the UK’s largest and most sophisticated fund managers now owns almost 9 million W7L shares and has recently increased that position. Combined with the disappearance of disclosed shorts, strengthening trading trends, improving margins and strong cash generation, that strikes me as a constructive signal and another indication that confidence in the recovery story may be gradually returning.

Schroders PLC is increaseing to hold over 11% company share so they place confident on this company . that is a good sign as we will see more blue to come soon.

Much of it is reiterating what we already knew, but the new information seems most certainly to be positive, especially when seen in the light of recent (fingers crossed) changes in the Middle East.

Q2 sales are already exceeding 2025, despite the sky high oil price, which is what we wanted to hear, but it depends how much of that includes new acquisition revenue. Are legacy brand sales also increasing? The margin has also increased, which is even more impressive, and if that's happening under current conditions, it bodes well for July onwards when wholesale prices may start reducing.

Factor in the changes in European postal charges for small parcels from Eastern Asia, and suddenly there's a material advantage against the likes of Temu. Those two elements combined, along with increased shelf space in significant stockists in the US and Europe is a real eye catcher.

The depressed American economy may be pushing more customers toward value cosmetics, and with the impressive new roll outs, it may well be indicative of new customers shifting their future spend as repeat customers.

The increase in cash is also highly appealing, whether for further acquisitions to diversify the brand, or as an acquisition target itself.

It's mainly all upside going forward.

Another encouraging takeaway from today’s AGM.

Shareholders overwhelmingly backed the board, dividend and strategy, with most resolutions receiving over 99% support. The share buyback authority was approved with 99.95% support, while the Rule 9 waivers were also comfortably passed by independent shareholders.

Combined with this morning’s update of improving margins, stronger cash (£20.6m), encouraging Rossmann sales and unchanged full-year expectations, management now has significant flexibility to allocate capital through growth initiatives, acquisitions and potential buybacks.

Overall, today’s AGM appears to have strengthened both confidence and optionality.

A growth Company with own brand products increasingly in demand with global reach, with growing cash pile, with Dividends above 5%, with share price only just 220p, with PE-Ratio of barely 12. Only one word for it: Ridiculous!

Correction up the way is bound to come.

IMHO.

Too much emphasis on being cautious..It will put off new potential investors

Post from ADVFN:

nawaralsaadi11 Jun '26 - 17:19 - 4754 of 4759

10 0

I think the market is still missing the bigger picture with Warpaint.

The company is steadily evolving from a mostly single-brand platform, W7, into a broader multi-brand beauty platform. If Warpaint can maintain its operating discipline and margin profile, this has important implications for revenue durability, cash flow certainty and valuation.

One of the biggest risks in beauty is fashion risk. Brands move in and out of favour. Products trend, mature and get replaced. Consumer attention shifts quickly. That risk is much higher when a company depends too heavily on one brand. A broader portfolio reduces that risk because weakness in one brand, category or channel does not have to derail the whole group.

When Warpaint came public in 2016, W7 represented roughly 80% of group revenue. Today, that has fallen to about 61%, even though W7 revenue has grown roughly 2.5x since the early public-company years. With Barry M now in the mix, I expect W7’s share of group revenue to move into the mid-50s over the next year or two.

I think Barry M could become a more important asset than the market appreciates. It has long UK heritage, strong brand recognition, existing retailer relationships, and significant room to grow outside the UK. In Warpaint’s hands, Barry M does not need to become a blockbuster. It simply needs to be stabilized, refreshed and gradually expanded.

The benefits are not just about diversification. More brands also give Warpaint more leverage with retailers. Retailers want newness, category coverage, gifting ranges, seasonal products, exclusive launches, different price points and brands that appeal to different customers. A broader portfolio gives Warpaint more reasons to be in the room with Tesco, Superdrug, Boots, Rossmann, Etos, Tigotà, CVS, Walmart and others.

Many investors focus almost entirely on growth. But cash flow certainty can matter just as much. A business with more predictable revenues, more diversified brands, and less dependence on any one product cycle should deserve a higher multiple than a business where everything rests on a single brand staying fashionable.

That is the valuation point I think matters. If Warpaint becomes a broader house of brands while maintaining margins, the quality of its earnings improves. The market should be willing to pay more for £1 of earnings that comes from a diversified portfolio of brands and retailers than for £1 of earnings that depends almost entirely on W7.

In other words, the multiple can expand not just because the company grows faster, but because the cash flows become more dependable. A positive update on Barry M integration at the AGM next week should prove highly constructive in this context.

9p dividend and only down 3p, strong showing, onwards and upwards from here

Now looking forward to the AGM here along with relating updates including on any global expansions planned/in progress (AGM next week, 16 June).

Market need confirmation from next trade update to see how it growth. If everything are in hood manner it will drive share price go up very quickly.

At moments it is still in negatives point from 2025 trade report but company in a good position to growth as thing are being sorted so well .

The war mess up the whole market but again it will stop sometimes soon .

As long as there is no warning trading so good so far .

Interesting how several factors now seem to be aligning at the same time.

Ex-dividend tomorrow, AGM next week, no disclosed shorts remaining above the reporting threshold, buyback authority expected to be renewed and recent trading volume has been significantly above average.

For the first time in a while, it feels as though both the technical backdrop and the fundamental backdrop are beginning to point in the same direction.

What makes it even more interesting is that the shares are still trading at a substantial discount to most published broker valuations.

Daily bullish fractal pattern completed on Tuesday, that is a 3 day fractal. Also partial bullish weekly outside price bar, which comprises the first 2 days, implies future sp target of 255, calculated as partial outside bar range X 2, added to partial outside bar high, which is Tuesday high. The weekly outside bar will require review after Wed-Friday prices are known.

The RSI(relative strength index) has completed a bullish failure swing in the monthly chart by crossing above the last two RSI swing highs. DYOR.

Markets rarely wait for full confirmation before moving. In reality, markets tend to price probability rather than certainty.

The market already knows about the weak FY26 start, the forecast cuts and the loss of confidence. Those issues are hardly a secret and have already been reflected in the SP.

The more important question now is whether the future turns out to be better than currently feared.

With the ex-dividend date approaching, the AGM shortly afterwards, buyback authority expected to be renewed, disclosed shorts now gone from ShortTracker and management still guiding towards an H2 recovery, it may not take full verification for sentiment to continue improving from here.

TheComposer4 Jun '26 - 07:22 - 4746 of 4746 Edit

9 0

Interesting backdrop developing here.

The ex-dividend date is now only a week away, the AGM follows shortly afterwards, disclosed shorts have disappeared from ShortTracker, buyback authority is expected to be renewed and the broader macro backdrop appears to be improving as oil prices continue to ease.

The market already knows about the weak FY26 start. The key question now is whether trading is stabilising and whether management remains confident in the expected H2 recovery.

With a debt free balance sheet, strong cash generation, a growing dividend, ongoing international expansion, entry into new South American markets and continued online growth, it feels to me as though the market is still focusing far more on what went wrong than what could go right.

It's taken a bit of pause on reduced activity the last few days so maybe there isn't that much demand for the dividend. That's fine with me, I'll take the dividend then a slice of profits at a slightly lower price.

Relative strength index around 59 so there are not many sells as it seem but share down for reason as MMs need share for big buy guy . it will come back blue tomorrow when they collect enough and Finnish sell for big buyer.

Ex-dividend day next week with company AGM/Updates the week after while disclosed shorts are now at 0%.

Can’t get a quote to buy on HL, but can sell any number…..

Wonder if the Mello event has sparked some interest…

As I have said before, this is headed to £4+ here based on undeniable forward fundamentals (should never have dropped this low from 600p+), I believe Berenberg bank will also upgrade their current 470p price target/Buy rating post AGM and especially looking at H2, Barry M was another master stroke, GLA.

Market down, red everywhere, but not red here at Warpaint. Good to see confidence returning here, Warpaint is still seriously undervalued though.

In case of interest, Warpaint London will be presenting (Sam Bazini) and also exhibiting (Hot Stand) at the MELLO2026 London event tomorrow, please find links for details here below:

https://www.melloevents.com/mello2026

https://static1.squarespace.com/static/67a65939ef881a7e4d1b51e6/t/6a1d5628c057810a68840520/1780307496306/WEBSITE+MELLO2026+SCHEDULE+FINAL.pdf

Rising a decent bit now, more to come, expect a pause at around 220, then a further leg ahead.

This share is simply too cheap to be true.

A lot of red everywhere, but here at Warpaint showing blue. Onward and forward, that will become clearer as the days go by.

Worth noting DividendMax is currently showing a very attractive yield profile here, especially considering W7L remains debt free, cash generative and still increasing dividends despite the difficult FY26 start.

The market still seems heavily focused on short-term sentiment while perhaps underappreciating the longer-term fundamentals and recovery potential.

https://www.dividendmax.com/united-kingdom/london-stock-exchange/personal-goods/warpaint-london-plc/dividends

Showing the expected resistance at 200p now so settle down for a short battle. Fully expecting it to break through quite soon and then we can see to the next hurdle.

Once again, be aware that the ex-div date is not far away so if you are trading based on DY, be aware that the annualised return will be higher than the quoted DY due to the proximity of the dividend payments - eg at 202.5p, the dividend yield is 6.42% but the IRR figure is 6.76%.

At least w7l share dont worry about any debt and interest payment that dent into profit. Then next month we do nothing but collect dividend so it is please to hold as long as it is. The next update trade will show true change its direction . if everything is on its couse and start growth again this share will go over 400p mark.

Interesting that W7L is now back testing the 200p area after recently touching ~165p, yet sentiment still remains extremely cautious.

To me, the debate now seems to be gradually shifting from:

“is the business broken?”

toward:

“did the market overreact to a weak FY26 start?”

Still massively below historic valuation levels despite:

➡️ debt free balance sheet

➡️ strong cash position

➡️ improving margins

➡️ attractive yield

➡️ and ongoing global expansion catalysts

We’ll soon be passing the 200p mark, thereafter 220p in sight. Yet, that is still making the shares dirt cheap.

A profit making company with cash in the bank, selling quality own brand products on a widening market, what is there not to want! Target price should be in excess of 400p.

I hold long term, very long term, till death do me part term. If Warpaint does not have a bright future, then what Company does?

202.50...7.40 (3.85%) ...Bid: 200.00...Ask: 205.00...Spread: 5.00 (2.50% )

Market Cap: £161.09m

Sliced the last top up executing at 4.29pm 200p

Reducing as built up large holding .

Cavendish are on it May 1st

It was a challenging day for Warpaint on Wednesday following the FY25 results, reflecting the softer start to FY26 and subsequent downward revision to consensus. We have updated our forecasts on the back of Wednesday’s results, lowering revenue by 7% to £107.5m and EPS (adj., dil.) by 8% to 19.5p for FY26E. This implies just 2.3% YoY growth, relatively conservative given the additional store rollouts and orders discussed on the results call (Dirk Rossmann, Walmart) but reflects the c20% decline in sales through to April in FY26. Having downgraded several times over the past 12 months, it will take time to rebuild trust with the market. However, if Warpaint can start to deliver momentum, it could warrant a material rerating in the stock. Gross margin is progressing, the balance sheet remains healthy, and the dividend yield is an attractive 7.6% for FY26E. We reiterate our Buy recommendation but lower our target price to 340p, reflecting 100% upside.

Close ..172.50...2.00 (1.16%) ...Bid: 170.00...Ask: 175.00...Spread: 5.00 (2.941%)

Market Cap: £140.57m

Topped up 170p

Been sitting on the side for what seemed like ages was £4 at that point. Dipoed toe in today GLA

Looks like an extremely good deal, acquiring the brand for only £1.4m, and out of admin of course means it's shorn of any liabilities. Management being nimble like this and taking advantage of those opportunities when they arise what you want to see.

SP wise looks like we could be into breakout territory here, and no wonder.

Recent bearish down trendline value is 212.77 for current week from February & April peaks. Sector chart shows bullish break above last price high, on Tuesday. Warpaint sp is above price trough of 27/3/26, which is bullish. However a break/close above the current week trendline value of 212.77, is preferred. The bearish down trendline is reducing at 4.44 weekly, so next week value will be 208.33, then 203.89 in the subsequent week. DYOR.

I view the Warpaint shares the most under-priced shares on the market.

I have built quite a holding, looking forward to massive improvement some time in the near future.

Cheers to all who join me,

No not the WW2 surrender but W7L going in en-mass - 22000 stores WOW

I'm buying in first thing tomorrow, they do the right things and it's a choppy sea in the world so in the end they will do great I reckon

Yes, management stated the Rossmann Germany launch is expected to begin from May 2026 and referenced a pilot rollout into ~2,200 stores.

Importantly, even though it starts as a capsule/pilot range, the significance here is the sheer scale of the distribution opportunity if sell-through performs well.

Rossmann is one of Europe’s largest drugstore chains, so this could become a very meaningful long-term growth driver for W7L if expanded further over time.

Significantly improved Christmas order received from Walmart, now that tariff levels in the US have settled compared to 2025

· Expansion of the Group's footprint in Europe in 2026 is expected to include a contribution from Dirk Rossmann in Germany, part of the AS Watson group, which is launching, as a pilot, a capsule range of W7 products into all of its 2,200 stores from May 2026

Is it 2,200 stores to start with? Is it opening this month in Germany guys? Just got an AI prompt so not sure if anybody hearn anything?

I’m convinced. Bought in. Nearly divi time 🙂

Something also to note that while W7L might be trading on a dividend yield of 7.5%, that figure is a simple Dividend/Price number. If you take into account the timing of the dividend payments, your IRR is close to 8%.

W7L Intrinsic value worth more than 350p so it is too cheap now. Only matter of time when they will come back normal and expanding more markets. Including US and Germany.

It is notmal when down trend more sell than buy as peoles just sell as it losing Thiers money. . we are just holding and buy more when it is as cheap as now and waiting to 1 year from now.

Courtesy of back2basics1 on the advfn board

back2basics1: What makes W7L interesting at current levels is the increasingly significant disconnect between sentiment and fundamentals.

The market is currently valuing the company more like a structurally impaired ex-growth business, despite it still having:

➡️ £16m+ cash

➡️ absolutely NO debt

➡️ improving gross margins

➡️ strong cash generation

➡️ a 13p dividend yielding close to 8%

Operationally the company is also still expanding:

➡️ Rossmann Germany rollout into 2,200 stores

➡️ stronger Walmart orders

➡️ Barry M integration

➡️ online growth

➡️ India & South America launches

Clearly the weak FY26 start damaged confidence badly and the market now wants proof that H2 recovery materialises.

But if management delivers even a moderate recovery through H2, today’s valuation could eventually look extraordinarily pessimistic in hindsight for patient investors.

Based on fundamentals and forward potential here, W7L is clearly one of the most Undervalued & Oversold AIM shares trading today, sometimes markets provide rare opportunities, particularly for patient investors, DYOR!

You convinced me to buy in, onwards and upwards, fingers crossed

Anybody with a date for Bankruptcy of Warpaint.

The share price down to 172p surely points to imminent bankruptcy…

Or have I got this all wrong?

I think the latter is the case, better Buy some shares at current bargain base price.

Cheers to all who join, there won’t be regrets, IMHO.

.

.

You dont need to looking who shorted thí share . just looking at post from Stanleyb and know he is shorter.

No, just seeing the fact that no organic growth, the Iran Conflict will probably impact next set of results and then things may well recover after that...160p is possible in the next few weeks if Iran war doesn't end soon. JAO Adyor!

Pretty clear who’s put a short in, ehh stan?!

At current levels, the risk/reward now looks increasingly asymmetric to me.

If recovery does materialise through H2 as management expects, the upside from these levels could eventually prove materially greater than any remaining downside.

Agree, this looks to be heading back to test the 160 lows again on no news....? JAO Adyor

It’s hard to understand but I suspect ‘the market’ wants to see evidence of organic growth before the share price rises. The fundamentals of Warpaint are good and I think they have a bright future, but I have thought that for a while and the share price continues to drop.

Hopefully things will improve .

The share price is at nonsensical low level for no good reason at all.

Profitable, cash in the bank, bright future, this is a Buy, not a Sell.

Some of the macro fears being discussed here seem a bit overstated to me.

Higher freight, energy and input costs are not unique to W7L — every cosmetics/import-led brand faces the same backdrop. The difference is that Warpaint has already shown previously that it can protect margins through pricing, sourcing flexibility and scale efficiencies.

Importantly, cosmetics are also relatively high-margin, low-weight products, so freight/logistics costs are not as structurally damaging as in many other sectors.

What also stands out to me is that despite all the doom posts:

gross margins still improved to 42.6%

cash rose to £16m+

the business remains debt free

dividend increased 20%

short interest has actually reduced materially over time rather than increased

Meanwhile operationally the company is still expanding:

Rossmann Germany rollout

stronger Walmart orders

Barry M integration

India/South America launches

Clearly the weak FY26 start hurt sentiment badly. But the current valuation already seems to assume long-term stagnation rather than temporary weakness during a difficult macro period.