The market ticker for cosmetics maker Warpaint (W7L) is a reference to the London post code where the business began, but the company is increasingly international. Post period-end it bought Leeds Marketing, its US distributor, for $2.16m (£1.64m), which should give it greater access to the $11bn North American colour cosemtics market. Around two-thirds of Leeds’ sales come from Warpaint distribution in the US and Canada, and the remaining third from other cosmetics groups. But this isn't Warpaint's first acquisition. At the end of last year, it bought fellow UK-based cosmetics company Retra for £18.2m, funded via a £21.2m share placing.
Proportionally, UK sales are also shrinking as part of Warpaint’s revenues, down to 44 per cent from 49 per cent last year. And while the order book for Christmas is "significantly ahead" of last year at £8.2m, around two-thirds of full-year sales aren't expected until the second half. While half-year sales did rise, cash profits fell 9.7 per cent to £2.8m due to Retra being loss-making in the first half ahead of the all-important holiday period.
Analysts at Stockdale expect pre-tax profits of £12.7m during 2018, giving EPS of 13.9, compared with £7.7m and 9.6p in 2017.
| WARPAINT (W7L) | ||||
| ORD PRICE: | 248p | MARKET VALUE: | £190m | |
| TOUCH: | 240-255p | 12-MONTH HIGH: | 265p | LOW: 155p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 41 | |
| NET ASSET VALUE: | 52p* | NET CASH: | £4.6m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 13.3 | 2.88 | 3.59 | 1.4 |
| 2018 | 18.4 | 1.32 | 1.36 | 1.5 |
| % change | +39 | -54 | -62 | +7 |
| Ex-div: | 1 Nov | |||
| Payment: | 16 Nov | |||
| *Includes intangible assets of £17m, or 22p a share | ||||
