19 March 2020
Warpaint London PLC
("Warpaint", the "Company" or the "Group")
Update regarding Covid-19
Warpaint London plc (AIM: W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, confirms that it is continuing to closely monitor developments and make appropriate adjustments to its business following the outbreak and spread of Covid-19.
Whilst the Company is aware of disruption in the retail environment, particularly in Europe, caused by the restrictions in place, temporary shop clousures and changes in shopping behaviour, to date the impact on Group sales has been limited. However, the Company is closely monitoring the evolving impact of the current situation on demand on a country-by-country and retailer-by-retailer basis. Whilst the outbreak will inevitably have a negative impact on the business, given the uncertainty and rapidly evolving government and central bank response, it remains too early to determine the level of impact on the Company's results for the current financial year.
To date there have been no material issues with the Company's supply chain, Chinese suppliers are returning to normal levels of production and the Company is maintaining healthy levels of stock.
The Directors believe the Company's business model remains robust, with sales globally underpinned by a strong balance sheet with net cash.
The Company is also taking all necessary steps to protect its staff members. All those that can are working from home. For those that can't, the Company is focused on taking appropriate steps to ensure the health and wellbeing of its workforce which in turn will hopefully allow for an uninterrupted service to customers.
The Company will provide a further update at the time of announcing its results for the year ended 31 December 2019, expected to be on 22 April 2020.
Enquiries:
Warpaint London Sam Bazini - Chief Executive Officer Eoin Macleod - Managing Director Neil Rodol - Chief Financial Officer |
c/o IFC |
Shore Capital (Nominated Adviser and Joint Broker) Antonio Bossi - Corporate Advisory Daniel Bush - Corporate Advisory Fiona Conroy - Corporate Broking |
020 7408 4090 |
N+1 Singer (Joint Broker) Shaun Dobson - Corporate Finance Alex Bond - Corporate Finance |
020 7496 3000 |
IFC Advisory (Financial PR & IR) Tim Metcalfe Graham Herring Florence Chandler |
020 3934 6630 |
|
|
Warpaint London plc
Warpaint London plc is made up of two divisions.
The largest division sells cosmetics under the lead brand names of W7 and Technic. W7 is sold in the UK primarily to discount retailers and internationally to local distributors or retail chains. The Technic brand is sold in the UK and the rest of Europe with a significant focus on the gifting market, principally for high street retailers and supermarkets. In addition, this division supplies white label cosmetics produced for several major high street retailers. The Group also sells cosmetics using the smaller brand names of Man'stuff, Body Collection, Vintage, Outdoor Girl, Very Vegan, Chit Chat, Smooch, Copy Cat and Taxi.
The second division trades in close-out and excess stock of other branded cosmetics and fragrances from around the world.
