Revolution Beauty Group PLC reported that trading has been “excellent” in the past quarter, while it has continued to try and fix issues from previous management and repel the pressure from major shareholder Boohoo Group PLC (AIM:BOO).
Sales for the cosmetics brand in the first three months of its new financial year, from March to May 2023, were up 60% on the same time last year, with gross margins improving to 48.2% from 41.7%.
Underlying earnings (EBITDA) at constant currency rates was £3.5mln, it said, reversing from a £7.4mln loss a year ago, with cash on hand rising to £15.4mln.
Revolution chief executive Bob Holt said: "The excellent trading performance in the first quarter of the year is testament to the quality of our offer and the strength of our leadership team, and shows that we are delivering on our global retailer strategy.”
As well as “fixing” the issues overseen by previous management, he said improved cost controls and other processes have been put in place.
After Boohoo, which has a 26.6% stake, has been called for an emergency meeting to make changes to the Revolution board and drive a “switch to growth”, it said it “hopes that shareholders are reassured that the current board is similarly minded and that growth is being delivered”.
“The board believes that Boohoo's hostile requisition is value-destructive, opportunistic and self-serving, as well as not being in the interests of the company's shareholders as a whole,” it added.
Responding to the latest Boohoo statement, where it stated an intention to propose the appointment of the former CEO of THG Beauty as a director, Revolution said this suggests that Boohoo’s current board candidates, Alistair McGeorge and Neil Catto, “do not have the relevant experience in running a business in the beauty sector, nor in supplying a store estate and beauty product range which is focussed on the high street”.
Shares in Revolution Beauty have been suspended since September after its auditor refused to sign off on its accounts, which has led to an independent investigation being carried out by a law firm and forensic accountants over various issues, including questionable historical sales and personal loans made by its former chief executive.
The company said it is "on the cusp" of having trading in its shares on AIM restored.