Warpaint London Share Chat (W7L)

Added. Smidge of blue 👍🏻

Should be a nice few week rise into ex-divi date. Will add on any weakness.

Some very good posts here on reasons the drop is overdone and yield is going to attract plenty of buyers from now on.

Warpaint on and ready for battle.

AIMO DYOR GLA

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.

W7L just need a bit of tailwinds to get the recovery started. Not that I'm complaining but I just top sliced my calnex, now standing over 100x+ forward PE yet keep climbing with the AI tailwinds makes you wonder, what W7L will need to jump over 300p and starts flying towards it's old glory? It can't do AI, what else then? Consolidation? New market expansion? It's earning all these millions with £0 debt yet sitting duck under £2. Other than US-Iran conflict, I can't see any other reason so it should bounce back hard once they sign a deal I suppose?

It js main point to buy now and waiting it cime back

The key point for me is that the market is currently pricing W7L more like a structurally impaired ex-growth business than a temporarily weakened one.

Yet the company still has:

➡️ £16m cash

➡️ NO debt

➡️ improving gross margins

➡️ 13p dividend

➡️ expanding global distribution

➡️ Rossmann Germany rollout into 2,200 stores

➡️ Barry M acquisition

➡️ improving April sales YoY

➡️ management guiding for H2 improvement

To me, this looks far more like a cyclical earnings reset than a broken business.

If the recovery signs continue through H2, today’s valuation could eventually look extraordinarily pessimistic in hindsight.

It just seems so undervalued from over 500p last year, numbers off a little ok maybe 400p ish but this seems like the bargain of the century. Looking forward to the next results and a re-Ratating

I couldn't stop myself so bought some. Its not one of those overhyped AI stocks but it's definitely on the path to gradual recovery so fingers crossed.

GLA

AIM stocks are out of favour as the Labour Party continues it's war on Business and implementing out of control Tax and Spend Policies..!!!

Anyone worried about their pensions, investments, mortgages and taxes please look away now!!!!! 👀 it's frightening 🫣!!!! Only 1 day left to save the UK from Starmer!!!!!

UK Debt Markets Signal Growing Doubts Over Fiscal Discipline https://www.stonex.com/en/insights/uk-debt-markets-signal-growing-doubts-over-fiscal-discipline/ has brought the UK to the verge of Bankruptcy...

More thew 250 and the Small Cap index, the likes of WARPAINT AND WOSG should easily out on 25% n- too oversold

Https://www.cnbc.com/2026/05/06/oil-prices-trump-pauses-strait-of-hormuz-escort-effort.html

If it is signed, UK markets will get an almightly bounce for sure, the black cloud from W7L will also clear so I expect to see over 230p fairly quick. Might be a bit optimistic but given where the SP is now, any good news will hopefully push the SP up north really hard. Let's wait and see.

GLA

Dint buy share and hope it will go up tomorrow but thinking next year when all things are on operations and steady income without debt. I buy more now and leave it 6 months from now as it is very a good point to buy now .

As all bad new out and company still making money without paying and debt at all . at least you will have divide this year so just leave it and collect that free money.

"Does not have the skills, education...." or you can just look at the recent history of the company and its ability to generate and increase profits. That history suggests to me that the BoD know how to oversee a growing company and we can presume that they will continue to do so. Even if the dividend stalls from here, you're getting close to 8% and there's plenty of upside on the SP just to bring that down to more normal levels.

OR you gamble that the growth story has finished suddenly and you're left only with a 8% yield. Hardly a doomsday scenario.

Markets appear to be otherwise engaged so stocks like these can drift on small volumes or from strategic shifts in direction from institutions. Once all the noise has disappear, those holding onto their shares here will get their rewards.

Comparing a small AIM cosmetics company to the S&P 500 is meaningless.

W7L already scaled from a tiny AIM stock into a £100m+ global cosmetics business with:

➡️ NO DEBT

➡️ £16m cash

➡️ strong cash generation

➡️ expanding international distribution

And importantly:

➡️ today’s valuation is NOTHING like IPO valuation.

At ~170p:

➡️ valuation heavily compressed

➡️ yield now ~7–8%

➡️ margins improving

➡️ Barry M adds scale

➡️ Rossmann Germany rollout could become a major revenue driver

➡️ India + South America only just starting

The market is currently pricing this as if growth is permanently broken.

Management clearly disagrees — otherwise they would NOT have increased the dividend 20%.

TR since ipo 2017?

5.39% pa.

S&P?

13.4%

100 yr advanced economies 9.3%

Normal concentration risk is well known and already heavily discussed by the market — but the key point bears miss is that W7L is actively EXPANDING beyond that base, not shrinking into it.

➡️ Rossmann Germany rollout into 2,200 stores

➡️ CVS expansion in the US

➡️ Boots/Superdrug/Tesco expansion

➡️ India + South America launches

➡️ Barry M acquisition adding major UK footprint

➡️ Online sales +38%

That is not a company “standing still”.

Also:

➡️ £105m revenue

➡️ £16m cash

➡️ NO DEBT

➡️ 13p dividend

➡️ improving gross margins

hardly screams “poor management”.

The founders already built this from a tiny AIM business into a globally distributed cosmetics group sold across thousands of stores internationally.

Today’s issue is clearly weaker trading/sentiment — not inability to scale.

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.

Https://www.express.co.uk/news/uk/2172370/barry-m-makeup-administration-rescue

Just been reviewing and trying to understand the chart/trend here, and chart here now looks to be forming an inverse head & shoulders, which is usually a bullish reversal pattern.

Basically, it often signals the end of a downtrend and the start of a new upward move as sellers get absorbed and buyers take control.

With shorts reducing, institutions adding, and fundamentals improving (M&A is a cherry on top!), the technical setup here looks increasingly positive.

This could be the base before the next leg higher, fingers crossed.

(Roughly:)

M/Cap is £138.75mil

Pre tax profit is £18.1mil

Cash + cash eqivalents is £16mil

NAV is £80.353mil

M/cap / PTP = 138.75/18.1 = 7.67

strip out the cash and

M/cap / PTP = (138.75-16)/18.1 = 6.78

That's cheap.

M/cap/NA's = 138.75/80.353 = 1.73

So you're paying less than twice the net assets to own it - compare that to other companies in the same sector.

Dividend is 13p. Based on a share price of 172, that's 7.56%

And there's no reason that dividend should drop, expecially when all the chaos settles down.

So if you look at a term farther away than the end of your nose, it's dirt cheap and an absolutely insane bargain at this price IMHO.

And would still be fair value with a share price of a minimum of 50% higher. Again IMHO.

Post from ADVFN today:

nawaralsaadi29 Apr '26 - 07:59 - 4693 of 4699

11 0

If you are trading the stock, there will be plenty of volatility. If you are in for the long haul, as they continue to expand their distribution, broaden their product offering, and deepen relationships with major retailers, then sit still, relax and collect the higher dividend while they continue building the foundation for a much larger, highly profitable business.

In my opinion, the valuation is already extremely depressed, and quite reflective of a weak start to 2026. I am loving that they've finally gotten into Germany, and I think India and South America have the potential to be big markets for them considering their low price points. I still see Warpaint positioned for £200m in sales and EBITDA at £45m-£50m by 2030. If the stock sells off here, this would be an excellent opportunity to take a long term position.

--

Some helpful additional context from Shore Capital on trading conditions in 2026:

The c£6.5m sales shortfall includes a c.£1.5m loss of sales from Bodycare year-on-year, a c.£2m headwind from the USA, as everyday sales materially struggle even post lower tariffs, coupled with lower sales activity from a number of customers in the UK and EU. However, whilst one swallow does not make a summer, we note a stronger April is reported, with we believe sales ahead by c.£2m YoY. Looking forward from here, the Board states it expects the improved performance to continue through the year “particularly in the second half’, such confidence is underpinned by an anticipated £8m of income from the Barry M acquisition announced as pending in February 2026, further supported by new distribution agreements noting an expected launch with Dirk Rossman in Germany (2,200 store, part of the AS Watson Group), a “significantly improved” Christmas order from Walmart USA, and new markets opened in India and South America (Panama, Argentina and Chile).

Warpaint - 2017 capital raise at 190p. P/E 6.6 at 175p pays 7% divi. (Looks too cheap at 175p). Was 630p less than 2 years ago, £5 less than 1 year ago.

Interesting that Berenberg only modestly cuts W7L target to 470p (510p) and keeps BUY.

That’s hugely telling after today’s panic sell-off.

➡️ Still sees massive upside from current SP

➡️ No downgrade to Hold/Sell

➡️ No balance sheet concerns

➡️ Dividend UP 20%

➡️ Cash UP

➡️ NO DEBT

Looks far more like:

“temporary earnings reset”

than anything else here.

At these levels, risk/reward looks increasingly compelling.

Berenberg cuts Warpaint London price target to 470 (510) pence - 'buy'

Overtrader - You're quite right, there's a distinct pong of manure on this board today...

or alternatively another bull****ter on a bulletin board. taking a postition into results (in either direction) is nothing other than gambling.

Play big - win big, i suppose it was a no brainer trade up there.

Well done DSymons

If I’m understanding your figures correctly, that would mean you were running a short position of over £250,000 on Warpaint?

Well done to you, nice little earner.

We are all here to make money, just some of us prefer to be long.

Yes my small initial holding is down, but its just a paper loss and I've added at what I consider to be a very low price this morning.

I'm happy to hold for medium to long term gains and take the dividend in the meantime

Any sort of resolution in the Middle East will see all bargain basement stocks bounce. Its just a matter of time.

When you build in all the headwinds that the Iran crisis is causing.

Easy 30^% upside shot term here

I've also added at £1.70 and £1.725

Clearly someone (fund?) had dumped some big blocks this morning, but at this price with 7.5% yield, no debt, big cash position, business looks good for medium to long term.

Based on Q1 2026 numbers, 10% increase every quarter gives us 2026 Annual Sales = £121M which is very much achievable based on their recent acquisitions and future business plan…

Probably going to sit arouthese levels until H1 2026 results are out and the Iran conflict could make those look worse than the underlying performance 🤔. JAO Adyor

As predicted 165p to 170p open..!

"Only real issue there is the increase in OPEX but I'm assuming that can be offset by revenue growth in the next year."

Yes, that will be the company's plan. They've taken two big new brands in Brand Architekts and BarryM. They've got to staff those brands with sales teams and additional back end staff. I don't think it would be possible to simply dump them on the existing sales teams and back end and expect them to flourish.

Thanks Kensal. Only real issue there is the increase in OPEX but I'm assuming that can be offset by revenue growth in the next year.

"I'd like to understand how the revenue and margin can increase but the EBITDA and PBT are showing large reductions. What are the additional costs hitting the profits?"

These are the main points why EBITDA and profit have declined notwithstanding revenue and margin increases. Some of them, including significant items (Bodycare and FX), are one off. Increase in operating expenses (increased staff count) is the biggest single item and is obvs recurring. However, one would hope that this increase reflects the increase in staffing to work the acquisitions of Brand Architects in anticipation of doing the same with Barry M

Sales volume growth+£1.6m

Margin growth+£1.6m

Bargain purchase gain (Brand Architekts)+£4.5m

Increase in operating expenses-£5.6m

Bad debt charge (Bodycare, Factory Shop)-£1.0m

FX: loss £2.2m vs 2024 gain £2.0m-£4.2m

Exceptional items-£1.0m

Amortisation, depreciation, other-£1.6m

Net change-£5.7m

At current low price the shares are jolly cheap, they are a Buy in my view.

Shocking TS

I'm assuming initial drop on the negative as seem to be par fir the course on aim. And an eventual re rate as investors buy into the positive upside?

Lots going on, bad debt one off write off’s. Strategic role outs look very good and need time to to flower. Cash on hand and no debt is powerful. Only paid £1.4M for brand architects. Revenue up a bit in total like for likes variable. On line doing great but small numbers. EPS down, divi up….Holistically I’m quite bullish but staying humble as with global wars etc will people adding War Paint 🤗

These are concrete and positive aspects for the future:

In Europe: launch of W7 into 200 Tigota stores in Italy, with a capsule collection going into a further 400 stores; expanded W7 assortment into all 546 Etos stores in the Netherlands, with permanent fixtures and an expanded range and W7 going into an additional 150 Normal stores following the chain's expansion

In the UK: expanded into 140 additional Superdrug stores; gifting rolled out into 350 Boots stores for Christmas 2025, alongside an expansion of accessories into 250 additional stores and further expansion with 150 additional Tesco stores taking an Impulse offering

In the US: expanded the W7 range stocked and rolled out to a further 399 CVS stores

In the ROW: expanded sales in Chemist Warehouse in Australia and New Zealand and launched into the Warehouse Group, New Zealand

Direct online sales were £11.6 million, up 38% year on year, accounting for 11.0% of Group sales (2024: £8.4 million/8.3%)

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

The Group continues to expand outside of the UK, Europe and the US, with new markets opened in South America and an Indian subsidiary entity starting trading in Q2 2026

Despite continuing global macroeconomic headwinds the Group has significant planned expansion opportunities, particularly for later in 2026, and expects continued margin improvement

Warpaint London reported record 2025 revenue of £105.1m (up 3% year-on-year), bolstered by the Brand Architekts acquisition. However, challenging conditions caused adjusted EBITDA to drop 15% and pre-tax profit to decline by 24%. Despite this, they improved gross margins to 45% in H1, doubled cash to £16m, and remain debt-free.Key details:Performance: Record sales were driven by European and UK growth, though impacted by softer US sales and a £3m hit from a customer insolvency.Outlook: Management noted a tough start to 2026 but expects a second-half weighted recovery with further margin gains.Dividend: The total dividend was increased to 13p per share.Acquisitions: The company recently acquired the Barry M brand from administration to expand its portfolio.Stock Activity: Analyst sentiment remains 'Buy', though the share price has experienced volatility and a decline over the past year.Note: Data is as of April 29, 2026.

Warpaint London PLC reported a 3% increase in revenue to £105.1 million for the year ended 31 December 2025, alongside a 140 basis point improvement in gross profit margin to 42.6%. However, adjusted EBITDA decreased by 15% to £21.3 million, and profit before tax fell 24% to £18.1 million, impacting adjusted earnings per share by 25% to 16.7p. The company ended the year with a significantly strengthened cash position of £16.0 million, up 102% from the previous year, and maintained a debt-free balance sheet. The Group also recommended an increased final dividend of 9.0 pence per share, bringing the total for the year to 13.0 pence per share.

"Will we see 160 today?"

I don't think so. Much of the bad news over the last year is already priced in from the fall in the second half of 2025. I think that there will a modest recovery in the SP or it will remain flattish. As and when the Iran crisis ends (if it ends) and if the company reports on H1 2026 with recovery in sales from April 2026, the sp should pick up more strongly.

Key point:

➡️ This was NOT another profit warning.

Despite:

• US tariff chaos

• Bodycare collapse

• weak consumer backdrop

• FX hit

W7L still delivered:

✅ RECORD revenue £105m

✅ Gross margin UP again to 42.6%

✅ Cash DOUBLED to £16m

✅ NO DEBT

✅ Strong cash generation

✅ Online sales +38%

✅ Walmart orders improving

✅ Rossmann Germany rollout into 2,200 stores

✅ Barry M acquisition

✅ April 2026 already ahead of April 2025

✅ “Signs of recovery” explicitly mentioned

And MOST importantly:

✅ Final dividend INCREASED from 7.5p to 9p

✅ Total dividend now 13p

Companies expecting disaster do NOT raise dividends by ~20%.

To me this looks far more like:

➡️ “2025 trough year + H2 recovery setup”

than a broken business.

At sub-190p:

• huge yield

• debt free

• improving margins

• strong brands

• expanding distribution

Feels like fear/exhaustion selling into results rather than fundamentals collapsing

Would imagine we'll be opening down a lot of negative words there.

Will we see 160 today?

Nice divi;

net cash also 👍

Increase in online sales;

I'm quite pleased.