Warpaint London (AIM: W7L) has warned investors that trading conditions in the first four months of 2026 remain significantly below the prior year, pushing shares down 7% to 175p on Wednesday.
Unaudited group sales for the four months to 30 April 2026 are expected to come in at approximately £26.1 million, well short of the £32.6 million achieved in the same period last year.
The cosmetics group, which owns the W7, Barry M and Dirty Works brands, said the weaker start reflects the timing of larger orders rather than any underlying demand problem.
Management said a number of significant customer rollouts are scheduled to kick in from May 2026, which should shift sales toward a more second-half weighted profile than in previous years.
Signs of an April recovery are already visible, with sales in April 2026 expected to exceed those achieved in April 2025.
Full-year 2025 results, released alongside Wednesday’s update, showed adjusted EBITDA fell 15% to £21.3 million despite revenues growing 3% to £105.1 million.
Profit before tax fell 24% to £18.1 million as the group absorbed costs from its February 2025 acquisition of Brand Architekts.
Post-period, Warpaint snapped up the Barry M cosmetics brand out of administration for just £1.4 million, a move the board called a strategically significant acquisition at an attractive price.
The board is recommending a final dividend of 9.0 pence per share, bringing the full-year total to 13.0 pence, up from 11.0 pence in 2024.