Troubled Revolution Beauty announces financing and results date

By

Nigel TAYLOR

Published
Mar 30, 2023

Long-troubled multi-channel mass beauty retailer Revolution Beauty Group on Thursday updated the market on the timetable for publishing its delayed FY22 accounts, together with amendments to the group's banking facilities.

With its shares suspended since September and with the AIM-listed company still awaiting results of an ongoing independent investigation over accounting issues, its audited FY22 accounts to 28 February will now be published by the end of April, it announced.

“The company will continue to work with its Nominated Adviser towards lifting the suspension of trading in its shares as soon as possible following the release of its FY22 accounts. In addition, the company continues to work towards the publication of its unaudited interim financial statements for the six-month period to 31 August 2022, which it intends to issue at the same time”, it said.

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Meanwhile, the group also said it is “pleased” to announce that it has secured an amended facility agreement with its banking partners. As part of the agreement, the overall size of the facility has been agreed at £32 million, reduced from £40 million, and is fully drawn, it noted. 

“This reflects the group's cash requirements and gives the business sufficient liquidity as it continues delivering its strategy. Revised covenants have been agreed with its banking partners and will be tested quarterly”. As of 28 February, the group's cash balance stood at £11 million.

Last May, it seemed such woes were improbable when Revolution Beauty delivered a “strong” full-year performance, in line with expectations, “driven by the strength of our omnichannel route to market” as adjusted EBITDA for fiscal 2022 jumped 73% to £22 million and sales rocketed 42% to £194 million, boosted by record sales in Q4, underpinned by global expansions in Boots and Walgreens in the US.

But then came the audit investigations with its executive chairman Tom Allsworth and CEO Adam Minto “voluntarily” agreeing to step away from the day-to-day management of the business in mid-October.

In November, it promoted its interim COO Bob Holt to chief executive alongside news that Boohoo Group had more than doubled its stake in the company to a 26.4% holding, becoming its largest single shareholder.

On the trading front, there was positive news in December, with Revolution Beauty announcing the rollout of its Relove collection to over 200 Superdrug stores, “following a successful trial”, while adding Walmart in the US to its roster in February.