LONDON (ShareCast) - (Sharecast News) - Shares in Warpaint London lost their shimmer on Monday after the company warned that a challenging UK market will dent its profits for the year.
In an update for the year to the end of December, the owner of the W7 Cosmetics brand said that while US and EU sales have remained strong, the UK market - which accounted for 44% of group sales in the first half - remains challenging, with retailers reducing stock levels and Christmas orders.

"This reduction in previously anticipated UK sales will have an impact on group performance for the full year that will not be completely offset by better than anticipated performance in our major overseas sales territories," it said.

The company now expects full-year revenue in the range of £48m to £52m and pre-tax profit of £8.5m to £10m, which is around 25% below current market expectations.

Joint chief executives Sam Bazini and Eoin Macleod said: "Whilst the current UK market conditions are challenging we are seeing strong growth in our overseas sales. We remain well positioned to take advantage of any improvement in UK market conditions and will continue our strategy of growing and diversifying our international sales.

"Warpaint is a profitable and cash generative business that is well positioned for continued growth and the maintenance of our progressive dividend policy."

As at 30 September, group sales to the USA were up 60% compared to the same period in 2017, while sales in the EU (excluding the UK) were up 13% year on year.

At 0910 BST, the shares were down 39% to 125p.

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