Shares in Revolution Beauty Group PLC (AIM:REVB) fell 41% following a full-year trading update revealing a 26% drop in revenue and that management is reviewing funding options, with discussions ongoing with banking partners.
Talks have concerned "amending and extending" the current £32 million revolving credit facility (RCF), which is set to expire in October.
"While the board has confidence in the future medium-term prospects for the company, cash management has been tight and it is clear that the delivery of the strategy will benefit from a more robust capital structure with additional capital to invest into the company," the cosmetics brand said.
For the year ended 28 February 2025, the company reported a 26% decline in revenue to approximately £141.6 million, reflecting the impact of a product portfolio rationalisation.
Underlying adjusted EBITDA is expected to be between £6 million and £6.5 million. Cash at the end of the period stood at £5.7 million, with net debt of £26.3 million.
The company noted that digital channels and the US market continued to underperform, and it expects double-digit sales declines to continue into the first quarter of the 2026 financial year.
It highlighted weaker performance among pure-play digital retailers, except for Amazon, which continued to grow.
Despite the challenges, the company reported positive trends in its new product development launches and secured its first orders for the new RELOVE budget brand. It also expanded retail distribution for its master brand "Revolution" into major global retailers, including Walmart and DM Germany.