Improved End of Year Financial Position

Good progress over the year has been made in consolidating and streamlining the enlarged business.

The business is focussed on a rationalised portfolio of brands and products that engender high levels of consumer loyalty and reflect the redefined company purpose of focusing on high-performance problem-solving solution-led brands. All underpinned by our company mission of “providing problem solving solutions for everyday beauty”.

Some of the highlights include:

• Group sales for FY23 are expected to be c.£20.1million (FY22: £14.2m) an increase of 41% on the prior year due primarily to the full year effect of the acquisition of InnovaDerma Plc, which completed end of May 2022. Excluding InnovaDerma, revenue increased by c7% due to strong international sales offset by challenging trading conditions in the UK channels.
• The group retains a healthy net cash position of c£8.2m at the year-end, slightly better than the position at the half year and also slightly ahead of market expectations.
• Continued implementation of the strategy to invest and support our five Invest & Nurture brands, which command higher retail prices, engender strong consumer loyalty and deliver stronger margins.
• Completed integration of InnovaDerma, all core functions are now based in the UK, full synergies to be realised by January 2024.
• Strong sales growth vs the prior year in the international channel driven by post COVID-19 rebound in volumes from General Merchandise stores across North America and Europe, primarily benefitting Dirty Works.
• Confirmed distribution roll out to AS Watson stores in 2023 & 2024 across the Middle East and Asia (Thailand – 200 stores, Vietnam – 7, The Gulf – 16, Philippines - 100, Malaysia – 66, Taiwan – 200, Singapore - 40, Turkey -100).
• New Super Facialist Clear Skin range, targeting problematic teenage skin care needs, launched on Amazon in September and in Boots in June 2023. In line with our omnichannel strategy, a new Super Facialist D2C site launched in March 2023.
• Skinny Tan’s 1^st 360 digital omnichannel brand awareness and customer acquisition campaign launched in July 2023 to capitalise on the 2^nd half of the tanning season.
• The Solution Menopause range is planned to launch in 2024.

This financial year will see many exiting launches for our focus brands and accelerated brand awareness and customer acquisition programmes (primarily Skinny Tan and Super Facialist).

Quentin Higham, CEO, comments:

“We have successfully integrated InnovaDerma and the new team has worked extremely hard in focussing on improving brand contribution. We continue to focus our resources on our key invest and nurture brands. I am positive about the future and optimistic to see the growth potential in our performance focussed portfolio. We are confident that our brand development and brand reach strategic pillars will help us achieve our profit goals.