Member Info for Amica1

They make 'bit's for SpaceX, pcb's etc. SpaceX are not into volume (mass production) projects so don't need a lot of stuff, I don't know their other clients but the loss of orders was big. Check out their accounts before getting carried away on the Space hype perhaps.

It's a bloomin wondeful share, my very best, I increased my holding by £7k 2 weeks ago which is large for me, glad I did.

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

Thank god no-one but me wrote anything, I don't count as I'm heavily invested ...:-)

As it's just galloping along, I would suggest checking out the charts pepes.

The sell off was totally unwarrented imho, the full year results were very good, but everyone got used to 'spectacular' and panicked for no good reason.

Hello all,

I see a few names here I recognise from OBD days...

Reading some comments here, it seems not much about the company but a lot of insults back and forth.

I would generally rate this as a buy rather than no opinion, but my small history of backing miners has always lost me money.

I am surprised there is very little share chat on the ADFVN board, I thought it would be swamped as this share is heavily hyped.

All I've read sounds good so I bought in however, mainly as the sites are in Europe and now America.

I've not really done due diligence on this stock but will do (not that I know much about mining itself) but need to see their website etc. and financial figures.

Hopefully this board will help each other to make some money or to at least save some if the hype turns out to be just that and nowt else.

I wish everyone good luck, cetainly more luck than with OBD!

From this weeks issue

A promising cosmetics brand

Last year I tipped Elixirr International, the digital, data and AI strategy consultancy, at 472p, because of its growth prospects, says Mike Tubbs. The 2024 results to 30 June showed pre-tax profits up 22%, with strong trading momentum in the early months of the second half of 2024. The recent share price is 765p, giving a price rise over the year of 62.1% or 8.2 times the 7.6% rise of the FTSE 100 over that period.

This year I am recommending Warpaint London (Aim: W7L), a company with a market value of £408m selling high-quality, affordable, branded cosmetics marketed globally. It is growing strongly, with revenue up 79% from 2021 to £89.6m in 2023 and operating profit up 385% to £18.5m over those two years. Warpaint was founded in 1992 by the current CEO and floated on Aim in 2016. The firm’s leading brands are W7 and Technic, with brands such as Man’Stuff, Body Collection and Chit Chat targeting specific demographic groups. The company is acquiring Brand Architekts, which has five primary cosmetic/skincare brands, and Warpaint’s latest brand ambassador is TikTok star Vickaboo.

Warpaint is sold in Tesco, Wilko, Boots and Superdrug and has a growing international presence. It started selling online in 2020, both on Amazon and via its own website. It also makes major high-street retailers’ own-brand cosmetics. Results to 30 June 2024, released in September, showed revenue up 25% to £45.8m, pre-tax profit up 75% to £11m and net cash of £5.5m. The forward p/e is 20 with a forward dividend yield 1.8%. The dividend has increased every year since 2017.

Thanks for the info Jinkar, I had not come that accross before.

Considering th growth potential of India, this trust is pretty slow in my opinion.

Today they are asking investors if they want to redeem shares or not. I did not redeem.

But Why??? Anyone have a clue?

Puzzled me

If someone could write in some detail in layman's language why this is a good share to own, i.e. the economic reasons it would be refreshing as opposed to the timewasting children's playground nonsense of ramp/de-ramp...

Editorial-team@simplywallst.com (Simply Wall St)

Thu 25 July 2024 at 9:05 am BST·4-min read

Amidst a backdrop of faltering global markets, as evidenced by the recent downturns in the FTSE 100 and FTSE 250 indices following disappointing trade data from China, investors might find potential opportunities in lesser-known UK stocks. In such uncertain times, stocks that demonstrate strong fundamentals and resilience could stand out as particularly compelling considerations.

Below we spotlight a couple of our favorites from our exclusive screener.

Warpaint London

Simply Wall St Value Rating: ★★★★★★

Overview: Warpaint London PLC, together with its subsidiaries, is a cosmetics producer and seller with a market capitalization of £490.64 million.

Operations: Warpaint London primarily generates its revenue from its own brand products, contributing £87.07 million, while a smaller segment comes from close-out sales amounting to £2.52 million. The company has seen a steady increase in gross profit margins over recent years, reaching 39.87% by the end of 2023, indicating efficient cost management relative to sales revenue growth.

Warpaint London, a notable player in the Personal Products industry, has demonstrated robust growth with earnings up by 122% last year, outpacing the industry's 16.5%. This growth trajectory is supported by its debt-free status and strong cash flow generation. Recently, Warpaint increased its dividend to £0.06 per share and successfully raised £31.5 million through an equity offering priced at £4.50 per share, indicating confidence from both management and investors in its future prospects.

Hi Monty9, If they are in Walmart, and we know they are, and Mr & Mrs US Joe public like the product which they probably will if the trend in other countries is followed, then any 'technical's' that are not 100% in line with norms will be irrelevant and soon changed to whatever norms are given to describe a rocket ship share imho.

I must admit I'm not too good with technical's but pretty good on understanding the fundamentals, no debt being one big one and using profits to expand another....

Based on what I've read, this should really fly - just on it's US Government contracts for security.

Despite an already strong run, Warpaint London PLC (LON:W7L) shares have been powering on, with a gain of 27% in the last thirty days. The annual gain comes to 135% following the latest surge, making investors sit up and take notice.

Since its price has surged higher, Warpaint London may be sending very bearish signals at the moment with a price-to-earnings (or "P/E") ratio of 35.7x, since almost half of all companies in the United Kingdom have P/E ratios under 16x and even P/E's lower than 9x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.

Recent times have been advantageous for Warpaint London as its earnings have been rising faster than most other companies. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

See our latest analysis for Warpaint London

AIM:W7L Price to Earnings Ratio vs Industry July 2nd 2024Want the full picture on analyst estimates for the company? Then our free report on Warpaint London will help you uncover what's on the horizon.

What Are Growth Metrics Telling Us About The High P/E?

In order to justify its P/E ratio, Warpaint London would need to produce outstanding growth well in excess of the market.

Retrospectively, the last year delivered an exceptional 122% gain to the company's bottom line. Still, EPS has barely risen at all from three years ago in total, which is not ideal. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.

Turning to the outlook, the next three years should generate growth of 17% each year as estimated by the three analysts watching the company. That's shaping up to be materially higher than the 15% each year growth forecast for the broader market.

With this information, we can see why Warpaint London is trading at such a high P/E compared to the market. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

The Final Word

The strong share price surge has got Warpaint London's P/E rushing to great heights as well. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

We've established that Warpaint London maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. Unless these conditions change, they will continue to provide strong support to the share price.

Having said that, be aware Warpaint London is showing 1 warning sign in our investment analysis, you should know about.

I used 'listing' lightly, wrong word, could have said presence, it's all good anyway. Todays RNS was a bit bland compared to previous knockout ones hence the tiny drop in SP. Hope for some more scintillating RNS's in the near future...

Doing very well today - again!

Https://cdn.prod.website-files.com/624aac5eec2229318e2db5e8/664de530cbb8fd160ca8b9e0_268382%20Warpaint%20Annual%20Report%20WEB.pdf

I took the post previous to this from ADFVN....

It confirmed what I was thinking about the US listing as some folk there may see it as a share like ELF was when it first started - same product niche - beauty, it raced away & now worth billions, but warpaint is cheap by comparison...

No time for research? Don't worry, thanks to AI you don't need to any more.

I asked ChatGPT-4 the following question ...would it be fair to say that Warpaint london is now, at the stage ELF Beauty was a few years ago?

He/It replied...

"Yes, it would be fair to suggest that Warpaint London is at a stage comparable to where e.l.f. Beauty was a few years ago, particularly in terms of market position and growth trajectory. Here's a breakdown of this comparison:

Growth and Market Position

e.l.f. Beauty (a few years ago):

- e.l.f. was expanding rapidly, increasing its market share by offering affordable, high-quality cosmetics.

- The company was building brand recognition and expanding its product lines.

- e.l.f. was investing in digital marketing and broadening its distribution channels.

- Warpaint London (currently):

- Warpaint London is in a growth phase, increasing its revenue and market presence.

- The company is gaining recognition for its value-for-money products that mimic higher-end brands.

- Warpaint is also focusing on expanding its distribution channels and enhancing its product offerings.

Financial Metrics Comparison

e.l.f. Beauty (a few years ago):

- Had smaller revenue but was growing quickly.

- Margins were improving as the company scaled.

- Investments in marketing and product development were paying off, leading to increased sales and profitability.

Warpaint London (currently):

- Shows similar revenue growth patterns with improving financial metrics.

- Margins indicate room for improvement, similar to e.l.f. at an earlier stage.

- Investment in brand development and market expansion reflects a strategy to capture more market share.

Brand Development and Market Strategy

e.l.f. Beauty (a few years ago):

- Focused on strong digital presence and influencer partnerships.

- Expanded rapidly in both physical retail and online marketplaces.

- Emphasized cruelty-free and vegan products, tapping into rising consumer trends.

Warpaint London (currently):

- Building its digital and social media presence.

- Expanding its footprint in both traditional retail and online platforms.

- Capitalizing on trends like cruelty-free cosmetics and affordable luxury.

Key Indicators of Early-Stage Similarities

- Market Expansion: Both companies have focused on expanding their market reach and product lines during their respective growth phases.

- Revenue Growth: Similar patterns of increasing revenue as they scale operations and enhance brand recognition.

- Investment in Marketing: Both invested significantly in marketing and branding to build customer loyalty and attract new consumers.

In summary, Warpaint London appears to be in a similar phase of growth and development as e.l.f. Beauty was a few years ago, showing potential for similar success as it continues to expand and refine its operations."