Warpaint London PLC shares climbed 2.5% after announcing the £1.4 million acquisition of the Barry M brand. The color cosmetics specialist reported FY25 revenue of approximately £105 million, below its £107-112 million guidance. Adjusted EBITDA is expected around £22 million, missing the £24.4 million consensus and down from £25 million in 2024.

Investors focused on the strategic purchase despite the trading update revealing multiple challenges. These included a £3 million impact from Bodycare's closure, a £4 million hit from a tough consumer climate, and £2 million lost to US tariff uncertainty. The acquired Brand Architekts business contributed £12 million in revenue and turned a small profit.

The deal brings Barry M's intellectual property and its extensive retail presence, with stands in over 1,300 stores including Boots and Tesco. Barry M itself generated £15 million in revenue last year. Warpaint ended January 2026 with £18 million in cash, up from £9 million, providing a strong balance sheet for integration.

Quick Fact: Barry M generated £15 million in revenue for the year ended February 28, 2025.