Warpaint London Share Price (W7L)

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.