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(Sharecast News) - Cosmetics company Warpaint said on Friday that results for the year to the end of December are set to be ahead of market expectations following a continued strong performance.
The company - which owns the W7 and Technic brands - said the strong trading announced in its results in September had continued, with "significant" growth in all geographic areas.
As a result, group sales for the year ending 31 December are now expected to be at least £85m, up from £64.1m in 2022, with the key pre-Christmas sales period still ongoing. Pre-tax profit for the year is expected to be "in excess" of £16m, versus £7.7m a year earlier.
Warpaint said the gross product margin remains robust and continues to be ahead of 2022.
"The group's expansion strategy continues, with further scheduled launches in 2023 and 2024 with new major retailers and the expansion of the range of products stocked with certain existing customers," it said.
It said launches in November include a range of W7 products in 400 Etos stores in the Netherlands and 100 Watsons stores in the Philippines, as well as a range of Technic products being launched in more than 200 Wibra stores in the Netherlands.
Further expansion is also scheduled with existing retailers, including W7 being stocked in an additional 372 CVS stores in the US and 102 Boots stores in the UK during the first quarter of 2024.
At 1005 GMT, the shares were up 5.8% at 331.20p.
House broker Shore Capital said the update "once again makes for very pleasant and welcome reading".
It said the growing list of new retail customers and store expansion with existing customers "bodes very well for the medium to long term".
The broker upgraded its FY23 earnings per share estimate by around 11% to 16p.
"We view Warpaint as being increasingly well set for sustained medium to long-term growth, with the quality of the growth building and driving significant cash generation as well, we see much to like," it said.
