Revolution Beauty sees losses widen in long-awaited full year results following accounts probe
Revolution Beauty saw operating losses surge to £38.8m, up nearly £30m in its long-awaited final year results for the year ending February 2022, which had been delayed after auditors raised serious concerns over its accounts.
The embattled cosmetics group saw its pre-tax earnings (EBITDA) dip by £14.2m to a loss of £0.8m.
Pre-tax losses were up to £44.9m, from £17.8mn, which it said was down to high freight costs during the pandemic.
In January, an independent investigation into the company’s accounts had revealed “serious issues” over the way the business was run, including concerns over personal loans made by a former CEO.
Auditors had previously raised concerns over Revolution Beauty’s accounts in August, which resulted in a suspension of the troubled groups shares from September 1 and a delay the publication of its full year results.
In November, Chief Executive Adam Minto stepped down.
Bob Holt, the current CEO of Revolution Beauty, said today that “integrity and honesty in every aspect of our business is paramount. This has been the focus of the new leadership team as we reset internal controls and processes to ensure that we are in a position to achieve consistent operational excellence at a global scale, and in line with the standards of a UK plc.”
Derek Zissman, Non-Executive Chairman of Revolution Beauty, said, “Whilst these results are significantly below that forecast by the previous management team to the market, they nevertheless reflect a robust business with a strong brand, loyal following, and significant potential in terms of both sales and profitability.”
The company reported revenue of £184.6mn in the period, up 35 per cent, which it said was driven by the strength of the brand and multi-channel offer,.