Revolution Beauty Group PLC (AIM:REVB) shares jumped 10% to 2.8p in early trading after reporting lower first-half sales and profits, but with the co-founders since returning to lay what they say are "foundations for a more disciplined, focused and resilient business".
In the six months to 31 August, revenues dropped 32% to £49.4 million, reflecting disruption from what founders Tom Allsworth, who is now CEO, and Adam Minto, a board consultant, say were strategic missteps under previous leadership.
Adjusted EBITDA losses almost doubled to £12.5 million, with sales hit by brand changes at key retailers and operational inefficiencies. The group also faced clearance-driven margin pressure and the impact of US tariffs.
Revolution warned that full-year sales and profit will fall short of earlier guidance, but the board expects second-half EBITDA of around £4 million and to exit the year with a run rate in line with previous expectations of £8-10 million, with the company having returned to positive EBITDA in September and October.
Allworth and Minto returned in August, and in September, the business completed a £16.5 million equity raise and refinancing, alongside a new strategy that included a substantial reduction of the cost base, with headcount falling from 205 to 123.
Allsworth said the company is now focused on product innovation, speed to market, and rebuilding momentum.
Chairman Iain McDonald, who joined as chairman during the first half, said: "it was apparent very quickly that the key to restoring the fortunes of Revolution Beauty was to bring the founders back into the business."