LONDON (ShareCast) - (Sharecast News) - Revolution Beauty said on Tuesday that it expects to report adjusted EBITDA of about £4.7m for the year ended 28 February, following a revision to the treatment of stock provisions agreed with its auditors.
The AIM-traded company had previously guided to adjusted EBITDA of between £6m and £6.5m, which included an adjusting item of £10.3m linked to provisions for non-strategic stock.

Under the revised definition, which now only applies to inventory sold or expected to be sold through outlet channels, the adjusting item was expected to be £8.5 million.

Revolution said the provision was non-cash and non-recurring, reflecting a significant rationalisation of its product portfolio.

It added that the updated approach was preferable as it required less judgement in determining the estimated value.

The group reiterated that its formal sale process was progressing, with ongoing discussions with several parties, while it continued constructive engagement with stakeholders, including over a potential equity raise.

Audited results for the year were due to be published before the end of August.

At 1002 BST, shares in Revolution Beauty Group were up 9.32% at 4.11p.

Reporting by Josh White for Sharecast.com.

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