Brand Architekts shares jump on decent first half

By Josh White

Date: Tuesday 21 Mar 2023

Brand Architekts shares jump on decent first half

(Sharecast News) - Beauty and personal care developer and supplier Brand Architekts Group reported significant growth in a number of areas in its first half on Tuesday, with revenues up 45% to £10.6m.
The AIM-traded company put the increase down to the acquisition of Innovaderma in May last year.

Its gross profit margin also improved to 38.9% for the six months ended 31 December, compared to 32.5% in the first half of 2022, as a result of the Innovaderma brand portfolio's impact.

Despite those gains, the underlying operating loss remained steady at £0.8m, consistent with the prior year.

Excluding Innovaderma, the underlying operating loss improved by £0.3m, narrowing to £0.5m, due to higher revenue and cost savings.

However, the loss before tax expanded by £0.7m to £1.8m, which the firm said was due to exceptional costs and intangible amortisation related to the Innovaderma acquisition.

At the end of the period, Brand Architekts Group reported a net cash position of £8.1m.

"Throughout the period we focused upon driving the strategic benefits of the enlarged group together with delivering the integration plan and simplifying the organisational structure," said chief executive officer Quentin Higham.

"We have secured new distribution gains against our key Invest - Skinny Tan and Super Facialist - and Nurture - Dirty Works and The Solution - brands, both online and offline, domestically and Internationally.

"Our focus has been on implementing strategies that focus on profitability, whilst capitalising on the group's new online and digital communications capabilities."

Higham said that despite facing a "very challenging" marketplace, with "well-documented" headwinds including inflation and a reduction in consumer discretionary spend, the firm was "pleased" that its results for the first half were in line with expectations.

"In the second half, as we enter the self-tanning season, we will look to implement an awareness and customer acquisition program for Skinny Tan so as to capitalise on its recent omnichannel distribution gains."

At 1356 GMT, shares in Brand Architekts Group were up 13.27% at 31.15p.

Reporting by Josh White for Sharecast.com.


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