Warpaint London Reports Record Sales and Profits for 2024
Why we think this is very good
The financial results for Warpaint London are exceptionally strong, showing impressive growth across all key metrics. Revenue increased by 13% to £101.6m, while adjusted profit before tax surged by 33% to £24.6m. The company's gross profit margin improved to 41.2%, and earnings per share grew by 29%. Cash position is robust at £21.9m with no debt. The company is expanding its customer base and geographic reach, with particularly strong growth in e-commerce sales. The outlook for 2025 remains positive, with the board's expectations unchanged despite potential headwinds from US tariffs. The acquisition of Brand Architekts presents new growth opportunities. While there are some risks to consider, such as customer concentration and US tariff impacts, the overall financial health and growth trajectory of the company are very impressive.
Key Points
- Revenue increased 13% to £101.6m
- Adjusted profit before tax up 33% to £24.6m
- Gross profit margin improved to 41.2% from 39.9%
- Earnings per share grew 29% to 23.5p
- E-commerce sales up 35%, now 8.3% of Group revenue
- Strong cash position of £21.9m with no debt
- Final dividend of 7.5p proposed, bringing total dividend for the year to 11p (up 22%)
- Solid start to Q1 2025 with 14% sales growth
- Acquisition of Brand Architekts completed in February 2025
- Board's expectations for 2025 financial performance unchanged despite US tariff challenges
Summary
Warpaint London has delivered an outstanding performance in 2024, with record sales of £101.6m (up 13%) and adjusted profit before tax of £24.6m (up 33%). The company saw growth across all key geographic regions, with e-commerce sales surging 35% to £8.4m. Gross profit margin improved to 41.2%, and earnings per share increased by 29% to 23.5p. The company maintains a strong cash position of £21.9m with no debt. Warpaint is expanding its customer base and geographic reach, securing new deals with major retailers like Morrisons and Walmart. The outlook for 2025 remains positive, with the board's expectations unchanged despite potential challenges from US tariffs. The recent acquisition of Brand Architekts is expected to provide additional growth opportunities. Broker targets suggest continued confidence in the company's performance, with price targets ranging from 580p to 680p.