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(Sharecast News) - Revolution Beauty Group struck an upbeat note on Thursday, despite a near doubling in interim losses, after the AIM-listed company's founders re-joined the struggling business.
The beauty brand, which sells make-up and personal care goods both direct to consumers as well as wholesale, saw revenues slump 32% in the six months to 31 August, to 49.4m.
Adjusted losses before interest, tax, depreciation and amortisation widened to 12.5m from 6.3m a year previously, while pre-tax losses came in at 18.4m. Last year Revolution posted pre-tax losses of 10.9m.
Revolution said: "While a degree of cost mitigation was taken by the previous management team to offset the declining sales performance, this was not enough to prevent a material worsening in adjusted EBITDA performance."
Co-founders Adam Minto and Tom Allsworth resigned in 2022 and 2023 respectively, following an accounting scandal.
However, in August Revolution confirmed the pair would return, having failed to find a buyer for the troubled business, which has been bit by still competition and rising costs.
Allsworth takes over as chief executive, while Minto has taken a consultancy role.
Revolution said: "Following the period end, the founders have brought renewed energy, clear leadership and strategy to the business."
It flagged a return to sales growth over the last two months across key US and key partners, helping to restore the business to EBITDA profitability.
As at 1100 GMT, the stock was trading up 1% at 2.46p, having eased off earlier highs. The stock has plunged 86% so far this year.
Allsworth said: "While I was not part of the business during the reporting period, it is clear that the group faced a number of significant challenges.
"However, with the actions taken since the period end, we have laid the foundations for a more disciplined, focused and resilient business."