- Shares hit all-time high after company raises annual guidance
- Revenue to be at least £89.5 million
- Strong balance sheet with £9 million of cash
Shares in Warpaint London (W7L:AIM) jumped 3% to 393.4p on Friday, registering a new all-time high after the value-focused cosmetics company upgraded full-year revenue guidance once again.
The shares have more than doubled over the last year, gaining 111% compared with a 13% drop in the FTSE AIM All Share index.
Warpaint has enjoyed strong trading over the last year which is reflected in analysts revising their earnings forecasts up by around 60% compared with the start of the year, according to Refinitv data.
Since floating on AIM in 2016 the shares have gained around 213% which means they are up three-fold, equating to a compound annual growth rate of 17.6% a year.
WHAT DID THE COMPANY SAY?
Hard on the heels of informing investors in November that revenue for the year to 31 December was expected to be at least £85 million, the company has outdone itself and now anticipates reporting revenue of approximately £89.5 million which represents 40% annual growth.
The owner of the W7 and Technic brands said it has continued to see strong trading in the final quarter with gross margin remaining ‘robust’ and at a higher level than achieved in 2022.
Consequently, the group expects to report pre-tax profit of at least £18 million.
That is ahead of current market consensus forecasts and management’s November guidance of more than £16 million and implies pre-tax profit growth of at least 134% for the year.
Unencumbered by debt, Warpaint said it continues to have a strong balance sheet with cash increasing to £9 million from £5.9 million on 31 December 2022.
The full-year results are expected to be released in April.
