(Alliance News) - Warpaint London PLC on Tuesday reported 3.1% growth in sales in the first half of 2019, but its profit was hurt by unfavourable exchange rates and increased investment costs.
Warpaint shares were down 27% in morning trade in London at 57.44 pence each.
The colour cosmetics supplier said it continues to see encouraging international sales growth, particular in the EU and the US, whilst challenging trading conditions remain in the UK.
Warpaint said it anticipates sales in 2019 to be GBP50 million, up 3.1% from GBP48.5 million in 2018.
However, the AIM-listed company noted that a number of factors, including the geographic mix of sales, adverse exchange rate movements, and its investment in future growth, particularly in the US, are hurting profitability in 2019.
Consequently, Warpaint said it expects adjusted pretax profit for 2019 will be in the range of GBP6 million to GBP7 million. This excludes amortisation in connection with acquisitions, share incentive scheme costs and exceptional items, which is estimates to total GBP2.8 million.
Last year, the company reported adjusted pretax profit of GBP8.2 million.
"The group continues to have a robust balance sheet and to actively implement its strategy for growth," Warpaint said in its statement Tuesday.
Warpaint said it will publish its half-year results on September 18.