Revolution Beauty Group PLC (AIM:REVB) shares brushed up well after reporting a return to positive underlying earnings in the first half of the year.
New chief executive Lauren Brindley, who took the role at the end of August as part of a wider board reshuffle agreed as part of a peace treaty with major shareholder Boohoo (AIM:BOO), said: "With improved internal controls and the right leadership in place with clearer roles and responsibilities, momentum has built across the business in the first half of the year."
Revenue of £90.4 million was generated in the six months to 31 August 2023, up 20% on the same period last year, with gross margin improving eight percentage points and adjusted earnings (EBITDA) of £6.4 million compared to the £7.9 million loss a year ago.
A £0.4 million profit before tax was declared, compared to a £13.7 million loss last time, though there was a £2 million cash outflow.
Gross inventory was reduced by £38.9 million due to improved controls over product assortment, alongside a discontinued stock clearance programme, the company said.
Net bank debt was £23.5 million at the end of the half, including £8 million of cash, though by 10 November 2023 it had grown to £12.3 million, with net debt cut to £19.7 million.
Brindley said the return to positive EBITDA "represents a significant milestone in the next phase of this business, while new retail partnerships in the US and strengthened retail partnerships elsewhere around the world are representative of our operational progress".
Looking ahead, she said: "While there is still lots to do, we are on the right trajectory, and I am developing a strategic plan with our new executive leadership team to ensure we are best-placed to deliver future growth. I look forward to sharing this vision and more detail on our plans early in the new year."
The shares jumped 12% to 31p in early trading on Tuesday but eased back to 28p after an hour.