What it does
The company, which floated back in the autumn of 2016, makes the Roots Double Effect haircare range, as well as a men’s skincare range called Charles + Lee.
It also owns Prolong, which is the world’s first FDA-cleared medical device for premature ejaculation which it launched in the US and Australia in 2018. It is expected to make its debut in the UK and Europe later this year.
But perhaps InnovaDerma’s most famous product is Skinny Tan – the firm’s wildly popular range of self-tanning lotions.
In a nod to the quality of its products, major retail chains such as Tesco, Boots and Superdry stock InnovaDerma goods.
How it is doing
In November it announced the launch of a new ‘Choc’ range of its Skinny Tan products across 680 Superdrug stores in the UK, which will potentially generate sales of up to £80mln a year. They will be available from early December for a limited time.
In an update for the four months to October, the company said it is trading in line with market expectations, buoyed by the stocking of its popular Skinny Tan line in 1,300 Boots stores.
Revenues for the first four months of the financial year were ahead 38%.
InnovaDerma said Boots had increased shelving for its Roots hair care brand, which it described as “a major vote of confidence”, while the Prolong sexual health device made “solid progress” securing multiple distribution agreements.
The company expects the Prolong product, which has the endorsement of the US Food & Drug Administration, to receive regulatory approvals in other geographies.
What the boss says: Kieran Callan, chief executive
"What Supedrug were saying to us very clearly, in terms of their overall strategy, is that they want products that make them a destination. It is an exclusive product like this that makes them a destination."
"If people love it, they will keep it as a permanent fixture, if it really is something that is more of a seasonal line, then what we will do is we will refresh that more or less at the same time next year."
What the broker says
In a note related to the update on the four months to October, analysts at house broker finnCap said that InnovaDerma's revenue growth is "in line with our expectations for full-year revenues of £15.8m, an increase of 23%."
They added: "We are not making any changes to forecasts, although point to the upcoming (Q1 2020) launches of a new product category into Superdrug stores and Growlase in the US during FY 2020 that have not yet been included.
"We reiterate our 200p price target, acknowledging also the value that a new product category has in reducing the current portfolio concentration and de-risking revenue growth."