Warpaint London Share News (W7L)

(Sharecast News) - Warpaint London said on Wednesday that 2023 had got off to strong start following a "record" full-year performance.

The specialist cosmetics group said strong demand for on-trend but affordable brands had helped deliver sales of £18.5m in the three months to 31 March, a 40% jump on the same quarter a year previously.

It follows a similarly strong performance in 2022, with annual sales rising 28% to reach an all-time high of £64.1m and earnings before interest, tax, depreciation and amortisation ahead 56% at £11.7m. Pre-tax profits strengthened to £7.7m from £3.7m.

The AIM-listed firm, whose brands include W7, Technic and Chit Chat, said it had strengthened existing relationships as well as pursuing new customers during the year. As well as selling its own brands through UK and European retailers, Warpaint supplies white label cosmetics for a number of major high street shops.

Clive Garston, chair, said: "This strategy of increasing sales to larger customers and providing products that their customers want is reflected in the results.

"Trading has continued to be strong in the first quarter of 2023, with the group enjoying record first-quarter sales. I am optimistic that the strong performance we have seen in 2022 and into 2023 will continue...despite the backdrop of macroeconomic uncertainty."

As at 1045 BST, shares in Warpaint - which is proposing a final dividend of 4.5p per share - were ahead 4% at 204.4p.

Shore Capital upped its 2023 earnings per share forecasts following the results, by 10% to 12.1p.

Analyst Darren Shirley said: "The 2022 results demonstrate outstanding trading, with very strong momentum clearly continuing through the first quarter.

"Margins are proving more than robust, which is expected to feed into the 2023 full year and beyond, while new business and trade relationships are building across the globe."

Warpaint is a house stock at Shore Capital.