Warpaint London (LSE:W7L) said trading remained difficult through 2025 and Q1 2026 but that the start of Q2 had been "more encouraging", with group sales achieved at an improved margin versus 2025.
"The group has further significant planned expansion opportunities, particularly for later in 2026, and expects continued margin improvement," Clive Garston said ahead of the AGM.
The board said 2026 sales will be more second-half weighted because of the timing of larger orders and customer rollouts, including a May launch of a W7 capsule range into 2,200 Dirk Rossmann stores in Germany, a significantly improved Christmas order from Walmart in the US and a planned Ulta Beauty online Christmas gift range that could open further 2027 opportunities.
Warpaint said it has no debt and held cash of £20.6 million at 31 May, up from £15.0 million at 31 May 2025.
The company is in advanced discussions to renew and expand its contract with Ward & Hagon to add sales responsibilities and extra services following Warpaint's growth and the acquisitions of Brand Architekts and the Barry M brand, and as part of the Renewal Paul Hagon will step down from the board and his re-appointment resolution has been withdrawn from today's AGM business.
The company said it will make a further announcement regarding the Renewal in due course.
