Source - Alliance News

Brand Architekts Group PLC on Thursday said it expects to post a fall in sales as a result of reduced customer confidence and challenges in the external environment.

Shares in Brand Architekts were 14% lower at 49.45 pence in London on Wednesday morning.

For the year ended June 30, Brand Architekts said sales are expected to be around £14.2 million, down 11% from £15.9 million the year prior. Organic sales are also set to decline 16%.

The group was impacted by lower revenue in the second half of the financial year and reported an operating loss in line with that of the first half of the year.

The Teddington, England-based cosmetics company reported a net cash position of £11.3 million as at June 30, from £19 million the same date a year prior.

This reduction is due to the costs of acquiring Innovaderma PLC, a developer of beauty and personal care products, it said. The acquisition delivered additional sales of £800,000 in June.

The group suffered a decrease in consumer confidence on demand, as well as inflationary headwinds and ‘challenging’ external environment and market conditions.

Brand Archikekts said: ‘Following the acquisition of Innovaderma, the combined group is of greater scale with strong financial foundations and a number of complementary competencies.’ It added: ‘The management team are now focused upon realising both the strategic and financial benefits of the newly transformed group’.

The group relaunched several brands during the financial year and was pleased with the performance of its largest brands, Skinny Tan, Super Facialist and Dirty Works, it said.

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