Warpaint London PLC - listed on AIM under the symbol W7L - recorded a 2.5% share rise on Monday after confirming it had acquired the Barry M brand for £1.4 million and publishing a trading update for the year ended December 31, 2025.
The company said it expects to report FY25 revenue of approximately £105 million, up from £102 million in 2024 but below its earlier guidance range of £107-112 million. Adjusted EBITDA is forecast at about £22 million, missing the analyst consensus of £24.4 million and falling from £25 million the prior year. Despite those shortfalls, the market response to the Barry M deal and the companys outlook for growth was positive.
The Barry M acquisition covers the brands intellectual property, stock, and order book, while explicitly excluding manufacturing capabilities and liabilities. Barry M delivered roughly £15 million of revenue for the year ended February 28, 2025, and benefits from substantial retail coverage, with one-meter-plus stands in over 1,300 stores including Superdrug, Boots, Sainsbury's, Tesco, and Priceline Australia.
Warpaint attributed the weaker-than-expected FY25 performance to a combination of discrete impacts. Management cited the closure of Bodycare as accounting for a £3 million revenue reduction, a challenging consumer environment contributing a £4 million impact, and lost business linked to US tariff uncertainty representing approximately £2 million.
The Brand Architekts business, which Warpaint acquired in February 2025, contributed £12 million to group revenue and produced a positive adjusted EBITDA of £0.8 million for the year, an improvement compared with an approximate £1 million loss in the prior year.
Warpaint also reported a stronger cash position, with cash balances of £18 million as of January 31, 2026, up from £9 million a year earlier. The company said it expects to publish its full-year results in late April 2026.
Commenting on the outlook, Chief Executive Officer Sam Bazini said: "Looking ahead to the new year, we expect to see a return to organic growth across the Group and also expect to be able to update the market on further significant new customer roll outs with our full year results in April."
Context and market reaction
Investors appeared to favour the strategic acquisition and the companys stronger cash position despite the downgrade relative to prior revenue guidance and below-consensus adjusted EBITDA. The Barry M deal adds a recognisable consumer brand and retail distribution footprint while leaving manufacturing obligations outside the transaction.
What to watch next
- Full-year results due in late April 2026, when management intends to provide further detail on customer rollouts and performance drivers.
- Integration details and any additional disclosures related to Barry Ms activities and how the brand will be commercialised given the exclusion of manufacturing in the deal.
- Execution on returning to organic growth and whether Brand Architekts improved contribution is sustained.