Investors can't buy shares in self-tanning treatment provider InnovaDerma (IDP) fast enough. As the company reveals revenue and profits for the year to 30 June will be significantly higher compared to the previous year, it has sent the share rpice into orbit, soaring a staggering 283% to 287.5p.
InnovaDerma has attributed its strong performance to underlying organic growth through its product range and the contribution of its Skinny Tan business.
It expects to report revenues of approximately AUD$8.3m (£4.2m), which is an increase of over 800% compared to AUD$1.05m (£0.52m) in the 2015 full year.
Skinny Tan, the first self-tanner with naturally derived skin smoothing actives to reduce the appearance of cellulite, was acquired in May 2015.
InnovaDerma has expanded its international distribution and retail network, which has been a key factor in its growth.
Skinny Tan has been launched in all Superdrug stores and is being sold in Korea’s largest beauty store chain Olive Young nationwide.
InnovaDerma has also expanded into Australia as leading pharmacy chain Chemist Warehouse agreed to distribute Skinny Tan across its 320 stores nationwide.
The company is expecting to report a maiden net profit and says it has little external debt, as well as a strong cash position.