UK's Revolution Beauty sees improved trading ahead after tough 2026
Revolution Beauty's Financial Performance and Strategic Developments
(Corrects debt proportion in second paragraph, market value in fifth bullet)
Trading Update and Turnaround Plan
July 21 (Reuters) - Cosmetics group Revolution Beauty said on Tuesday that trading improved in its fiscal second quarter after a turnaround plan helped it beat its own expectations in the first three months of fiscal 2027.
Market Reaction and Debt Concerns
Its shares, however, fell 8.2% in volatile trading as investors weighed the update against a full-year loss and debt equal to nearly half of its market value.
Key Financial Details
Here are more details:
Annual Results and Share Performance
• The company reported adjusted core loss of £8.2 million ($11.03 million) for the year ended February 28, 2026, compared to adjusted core profit of £4.7 million a year ago, after sales fell 28%.
• Shares of the company fell as much as 13.1% to 5.3 pence by 0924 GMT, having sporadically logged gains as high as 3.6% during the day.
Debt Levels and Analyst Commentary
• "The company still carries a relatively high level of debt versus its market cap," Zeus Capital analyst Rachel Birkett, said.
• She added that investors may be focused on cash conversion and the need to see a fall in Revolution Beauty's debt following multiple fundraises.
• The company reported net debt of £24.7 million at February 28, against a market cap of £53.15 million.
Credit Risk and Recovery Efforts
• The company has a combined credit risk score of "1", according to LSEG data. CCR is a marker of how likely a company could default on its obligations in the next year, with a higher score indicating a lower possibility.
• Revolution Beauty roped in founders Tom Allsworth and Adam Minto in August last year to revive the struggling brand, scrapping a sale process it previously contemplated.
• The company has been cutting costs, simplifying execution and negotiating price adjustments with retailers.
Additional Information
($1 = £0.7437)
(Reporting by Simone Lobo in Bengaluru; Editing by Harikrishnan Nair)
