Interim losses narrow at Revolution Beauty
By Abigail Townsend
Date: Friday 02 Jun 2023
(Sharecast News) - Revolution Beauty Group saw losses narrow, the AIM-listed firm confirmed on Friday, as it published delayed interim results, despite a fall in revenues.
The make-up and skincare specialist - shares in which are currently suspended following an accountancy scandal - said group revenues fell 4% in the six months to 31 August 2022, to £75.3m.
Within that, UK store revenues jumped 21%, boosted by a good performance in Superdrug and new distribution in Boots.
Digital wholesale sales tumbled 22%, due to overstocking, while Revolution Beauty's own web sales were 8% lower.
The operating loss narrowed to £12.1m from £23.7m, however, while the pre-tax loss was £13.4m, compared to £28.9m a year previously. The firm benefited from a reduced stock provision charge and no IPO fees. Revolution debuted on AIM in July 2021.
Looking to the rest of the year, which ended on 28 February, Revolution said it had seen an "improving trend of performance", with full-year revenues showing low single digit growth.
Trading in the current year, meanwhile, had been "encouraging", it noted, adding: "Expectations for the 2024 full year is high single digit growth in revenues and constant currency adjusted EBITDA in the high single digit millions."
Revolution also said it had taken a number of steps aimed at lifting its share suspension, including recruiting two non-executive directors, who will join the board once the stock begins trading again.
Bob Holt, chief executive, said: "The publication of these first-half figures represents an important step as we work towards lifting the suspension of Revolution Beauty shares.
"Overall, performance was resilient in the first half of the 2023 financial year.
"Together with the board, Elizabeth Lake, our chief financial officer, and I remain focused on strengthening procedures and controls across the group."
Shares in Revolution were suspended last September. At the time, the firm said it was unable to release its 2022 results after its auditor flagged a number of accounting issues.
A subsequent independent investigation, commissioned by the firm, uncovered a number of problems, including director loans and potentially insufficient checks on an acquisition.
Co-founder and executive chair Tom Allsworth stepped down in October, while fellow co-founder and chief executive Adam Minto resigned in November.
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