Shares in colour cosmetics supplier Warpaint London (W7L:AIM) jumped nearly 12% to 282p as the company issued another positive trading update.

Sales for the five months to 31 May 2023 were 45% ahead of the same period last year, at £29.7 million compared to £20.5 million in 2022.

The owner of the W7 and Technic brands said it had a strong start to 2023 said it expects the group’s full year 2023 performance will be significantly ahead of its prior expectations.

Warpaint says it continues to be ‘cash generative’ and maintains a ‘strong balance sheet.’ As of 31 May 2023, cash balances were £7.5 million compared to £2.7 million in the same period last year and £5.8 million on 31 December 2022. The company reassured investors that it had no debt.

ANALYSTS UPBEAT

This second quarter trading update pleased house broker Shore Capital. It said in a research note: ‘Post-lockdown, Warpaint has experienced a sustained period of exceptional trading as its UK and international growth strategies bare considerable fruit.

‘With board expectations now considerably ahead, we upgrade FY23F earnings per share by circa 19%, with circa 16% and circa 13% raises to FY24F and FY25F, respectively.

‘Warpaint has strongly building momentum and remains in the foothills of its global growth opportunity, in our view. The valuation remains attractive.’

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