London makeup specialist reports increase in sales after "challenging" 2020

A London cosmetics company has announced that it has seen sales increase in the first three months of the year following “significant challenges” in 2020.

Warpaint London, which owns W7 and Technic, reported that sales for the first three months of 2021 were 9 per cent ahead of the same period in 2020, with increases seen in all the group’s geographic regions.

This comes as the company announces its full year results for 2020, which saw revenue of £40.3m compared to 2019’s £49.3m, down by 18.26 per cent.

However, it also reported that it is now debt free, with the remaining £0.3m of loans and contracts repaid in full this month, and cash balances sitting at £5.8m.

Clive Garston, chairman of Warpaint London, commented: “2020 was a year dominated by the Covid-19 pandemic.

“These were unprecedented trading conditions, with the economy and industry facing some of its most significant challenges ever.

“Warpaint entered the pandemic in robust health, with a strong balance sheet and an agile management team capable of dealing with the challenges.

“I believe the group has weathered the pandemic storm well and has proved its flexibility and resilience in dealing with an unprecedented and unforeseeable situation.

“During the year we took the opportunity to reposition the business to increase our focus on mainstream high street stores and to build our online presence.

“We also worked to ensure that our product range, pricing and customer base gives us the best possible opportunity for future growth as the world recovers.

“I am particularly pleased to note the progress we have made with the expansion of the number and type of UK retailers stocking the group’s products and the growth of our online presence during 2020, together with the more recent roll out with Five Below in the USA.

“Trading improved in the second half of 2020 and we are pleased to report this trend has continued into the first quarter of 2021. I am optimistic that these encouraging trends will continue and that we have the right strategy in place to deliver profitable future growth.”