Final Results

Revolution Beauty Group PLC

21 July 2026

 

21 July 2026

REVOLUTION BEAUTY GROUP PLC

("Revolution Beauty", the "Group" or the "Company")

AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026

Turnaround plan delivering profitability

Return to positive EBITDA in H2 FY26 ahead of management guidance

Strong start to FY27 with positive EBITDA ahead of management expectations

Revolution Beauty Group plc (AIM: REVB), the multi-channel mass beauty brand, today announces its results for the year ended 28 February 2026.

Financial & Operational Highlights

	H1 FY26 £m	H2 FY26 £m	YE 26 £m	YE 25 £m	Change
Revenue	49.4	52.7	102.1	142.6	-28%
Gross profit	15.9	21.8	37.7	54.4	-31%
Gross margin %	32.2%	41.4%	36.9%	38.2%	-1.3ppts
Adjusted EBITDA1	(12.5)	4.3	(8.2)	4.7	-£12.9m
Adjusted EBITDA margin	-25.3%	8.2%	-8.0%	3.3%	-11.3ppts
Cash and cash equivalents	1.8	5.9	5.9	5.7	4%
Inventory	24.8	19.0	19.0	21.4	-11%
Net (debt)	30.2	24.7	24.7	26.2	6%

¹ Adjusted EBITDA is an alternative performance measure used by management to gauge the underlying performance of the business, adjusting for certain non-cash, non-recurring and normalising items that are not considered to form part of underlying performance (note 6).

•    Tom Allsworth and Adam Minto returned to the business in August 2025 after a successful equity fundraising and re-financing.

•    Return to EBITDA profitability in the second half of the year - H2 FY2026 adjusted EBITDA of £4.3m, ahead of previous guidance, and compared to a £12.5m EBITDA loss in the first half of the year.

•    Significant gross margin improvement from 32.2% in H1 FY2026 to 41.4% in H2 FY2026 with realistic forecasting and stock management.

•    Annualised cost reductions of over £9m achieved across operating costs, marketing costs and administrative overheads.

•    Improving sales trends H2 FY2026 vs H1 FY2026.

•    Year-end cash balance of £5.9m (£1.8m at 31 August 2025) and net debt reduced to £24.7m (£30.2m at 31 August 2025).

•    Management successfully negotiated price adjustments with US retailers, to mitigate tariff costs, which is expected to benefit in FY27.

Current Trading and Outlook

Following the significant operational and financial improvement delivered in the second half of FY2026, the Group has made an encouraging start to FY2027.

Trading in Q1 FY2027 has been ahead of management expectations which has continued into Q2, with sales broadly flat year on year.  This is a material improvement on the significant double-digit declines in the previous financial year. More importantly, the Group has achieved positive EBITDA in the seasonally quieter first quarter compared with a loss of £4.2m last year.  Our direct to consumer ("DTC") business has seen significant year on year growth (26%) as the emphasis on TikTok shop has proved to be a positive strategic focus.  Growth in the DTC channel is a good indicator of improved brand health and will be a continued focus for management.

The improved business performance also reflects the benefits of the actions taken on costs, rationalisation, rebuilding of product ranges, SKU reductions and stronger product execution, tighter inventory management and the early benefits of the refreshed innovation and marketing strategy.

The early progress we have made with both existing and new retail customers gives us confidence that the opportunity for Revolution Beauty to grow the brand is material.  The beauty market represents a substantial and structurally growing global opportunity, underpinned by long-term consumer demand and continued innovation across skincare, wellness and aesthetics.  Against this backdrop, the addressable market offers not only considerable scale, but also attractive long-term growth characteristics and multiple avenues for expansion across product categories, customer cohorts and geographies. 

We continue to target a return to growth, profitability and cash generation over the full financial year.

Tom Allsworth, Group Chief Executive Office, said:

 "The second half of FY26 was a pivotal period for the business and we are pleased to report a return to profitability, generating an EBITDA of £4.3m or 7.8% of sales, compared with a £12.5m EBITDA loss in the first half of the year. We have delivered against our initial priorities and taken decisive steps to restore operational stability, simplify the cost base, improve execution and rebuild confidence with our partners and stakeholders.

As we promised, Revolution has returned to what it does best - delivering innovation, creativity and affordable products to our customers around the world. 

We have made a solid start and I am excited by the opportunity in front of us.  I would like to personally thank the Revolution team for their continued hard work and commitment."

Iain McDonald, Chairman said:

"I believe the current market perception does not appropriately reflect the underlying strength, strategic progress and long-term potential of the business, and management remains fully focused on executing against the significant opportunities ahead and delivering materially improved shareholder value.  We will achieve this not simply by cutting costs, but by demonstrating consistent, profitable growth. The early signs are encouraging. The return of the founders, Tom and Adam, has reinvigorated Revolution Beauty and those colleagues who have remained with the business have demonstrated their commitment and risen to the challenge in front of them. We are exceptionally grateful to all of them. The early fruits of their hard work and the continued support of our customers and partners can be seen in the return to profitability in the second half of 2025/6. Our market is competitive, but it is very large and we can offer customers a unique blend of value, quality and innovation. That is very much a mass market proposition which means, provided we continue to execute well, Revolution has the potential to be a very large business."

For further information please contact

Investor relations Tom Allsworth, CEO Neil Catto, CFO [e-mail]	Strand Hanson Limited (Nominated Adviser) Christopher Raggett/Carl Holmes/Imogen Ellis Tel: [phone]
Zeus Capital (Broker) Dominic King/Jordan Warburton Tel: [phone]	Tavistock (PR enquiries) Simon Hudson/Rebecca Hislaire/Saskia Sizen [phone]

About Revolution Beauty

Revolution Beauty is a global mass beauty business which operates a multi brand, multi category strategy and sells its products both direct-to-consumer (DTC) via its e-commerce operations, and in physical and digital retailers through wholesale relationships.

Today, the Group has a retail footprint of c.17,500 doors across leading retail chains in the UK, USA and other international markets. Revolution Beauty has access to a wide customer base, predominantly aged between 16 and 35, through its digital partners and own DTC platform. It has established and invested to streamline its supply chain with its own manufacturing facility in the UK, and third-party warehousing facilities across the UK and in the USA. The Group has offices in the UK and the USA. Revolution Beauty currently employs 231 people.

Chief Executive Officer's review

Introduction

I am pleased to report on my first full period as Chief Executive Officer, following my return in August 2025. In the months since last year's Annual Report, we have made measurable and sustained progress against the priorities we set out, supported by a strengthened financial position and a renewed focus across the business. While the external consumer environment and pressure on discretionary spending remain challenging, our brand continues to resonate with consumers, underpinned by our accessible, high-quality and inclusive proposition.

This has been a focused period of stabilisation and reset. We have taken decisive action to improve operational discipline, simplify our cost base and better align the business with our current scale. At the same time, we have re-engaged with our core strengths in product and brand development, ensuring our innovation pipeline is more tightly aligned with evolving customer demand and market trends. These steps are beginning to establish a more resilient platform for future growth, although it is clear that further work is required to drive consistency, strengthen processes and restore sustainable profitability.

Looking ahead, our priorities remain unchanged. We will continue to focus on operational excellence, disciplined cost management and cash generation, while investing selectively in innovation and brand development. We are also committed to enhancing corporate governance, transparency and accountability across the Group. While we are still in the early stages of our turnaround, the progress made to date provides confidence that, with clearer direction and improved foundations, Revolution Beauty is well positioned to build momentum and deliver long-term value creation for all stakeholders.

FY26 Performance

Group revenue for the year was £102.1m (FY25: £142.6m). This reduction was predominantly driven by the reduction in SKU count and narrow strategic focus taken by the management team in previous years and during the first six months of FY26. The Group reports a loss before tax of £30.6m compared with a loss of £16.8m in FY25.

Adjusted EBITDA for the period was a loss of £8.2m compared to of a profit of £4.7m in FY25. Whilst a degree of cost mitigation was taken by the previous management team to offset the declining sales performance, this was not enough to prevent a material worsening in Adjusted EBITDA performance. This was also impacted by space and brand changes in certain retailers (resulting in non-recurring mark down costs) and the impact of new tariffs in the USA.

Our gross margin during the year declined marginally from 38.2% to 36.9% in FY26. This reflects significant clearance activity in the first half, as well as substantial gross to net revenue charges in H1, damaging the underlying product sales margin.

During the year, the business made progress in improving inventory control, supporting better availability of core product ranges and a reduction in excess stock. While these actions have impacted short term revenue, they represent important steps towards building a more efficient and sustainable operation model

.

The Group continues to operate through two primary offline routes to market: direct retail in core regions: including the UK, US, Germany, and APAC, and via a network of distributor partners across other geographies. Revolution Beauty products are now available in over 75 markets globally, a testament to the brand's international consumer appeal and accessibility.

In our UK business, revenue declined by 24% in FY26. This reflects a more cautious retail environment and the impact of SKU rationalisation. Despite this, consumer demand for our core Revolution Masterbrand remains resilient.

We saw a 41% decline in sales in our US business during FY26. Performance was impacted by underperforming license and collection programs, as well as the transition away from the Group's value brand Relove, to Makeup Revolution, which is a positive change for the future. There were also space reductions in certain retailers due to past underperformance, with associated markdown changes resulting in higher gross to net charges.

Our Rest of World direct retail and distributor channels remain a fundamental part of our long-term strategy, though performance in FY26 was challenging, with revenue declining by 24% compared to the prior year. This was primarily driven by strategic discontinuation of brands and categories, and the non-recurrence of significant distributor clearance activity that supported FY25.

Our digital business has two major channels, our third-party wholesale digital business and our own ecommerce sites.

The digital business remains a key strategic pillar for the Group, comprising both third party wholesale platforms and our DTC ecommerce operations. Growth in third party digital channels, particularly in the US through Amazon, has been encouraging and we began selling on TikTok Shop during the year with great success.

Sales through our DTC platform declined during the year reflecting the reduction in SKU count. While this has impacted short term revenue, it supports our objective of creating a more efficient, focused and consumer-related online offering. The DTC channel continues to play an important role in brand engagement and customer connectivity and we see significant long-term potential in this area.

Current Trading and Outlook

We continue to face a challenging trading environment, with macroeconomic pressures impacting consumer demand and retailer behaviour. We are very encouraged by trading in the first quarter, whilst sales has stayed broadly flat, they are ahead of internal expectations with the trend continuing into Q2 as well and we see significant opportunities for the remainder of the year.

We continue to optimise our product portfolio, drive innovation and actively manage the range. At the same time, we are taking decisive action to align our cost base with forecast sales levels, ensuring the business can operate profitably and sustainably.

As we look ahead, we know that returning to stability and profitable growth will require disciplined execution and at times, some difficult decisions. By sharpening our focus on efficiency and operational resilience, while continuing to invest selectively in opportunities, we are laying the foundations for long-term value creation.

As we work to return the business to stability and growth, every action we take is guided by the long-term interests of all our stakeholders. We are deeply grateful for the continued patience and support shown during this time of transition as we take the necessary steps to build a stronger, more sustainable Revolution Beauty.

Financial Review

Revenue

Revenue for the year was £102.1m (FY25: £142.6m), which reflects the planned SKU reduction and the previous management team's narrower strategic focus. The continued reduction in the breadth of the Group's SKU portfolio, coupled with a reduction in the online marketing spend as the Group consolidated its cash position earlier in the year, has resulted in a reduction in sales through the Group's own ecommerce channel.

Global store group revenue declined 27% from £113.9m to £83.7m. Digital revenues declined by 36% from £28.7m to £18.5m.

Geographically, UK sales declined by 24% from £44.6m to £33.6m.  In the US, sales declined by 41%. In the Rest of the World sales declined by 24%.

Gross Margin

Gross margin in the period was 36.9% (FY25: 38.2%). Performance in the first half was adversely impacted by clearance activity undertaken by the previous management team to generate cash ahead of the refinancing, which weighed heavily on the full year margin outcome.  Encouragingly, gross margin recovered materially in the second half of the year, to 41.4%.

Adjusted EBITDA and Operating Loss

The adjusted EBITDA for the financial year was a loss of £8.2m (FY25 EBITDA profit £4.7m). 

Operating loss was £23.0m, against a loss of £13.1m in FY25. There were material adjusting items, as detailed in note 6 below, relating to restructuring, onerous contract provisions, Australian market distribution model change, and legal and professional costs in the statement of comprehensive income, as well as an expected credit loss.

The loss before tax of £30.6m (FY25 - loss of £16.8m) resulted from restructuring costs, non recurring legal fees and a provision for an onerous contract as detailed in note 6. The underlying adjusted loss before tax is £24.4m compared with a loss of £5.5m in the previous period.

The reported loss after tax was £30.9m against a loss of £17.2m in FY25. 

Cash

We ended the period with a cash balance of £5.9m and gross borrowing amounted to £28.0m.

The Group used cash from operations of £2.8m.  This was driven by operating losses which were partially offset by movements in working capital totalling £8.5m. The Group received net proceeds from the fundraising of £15.5m and £4.0m was used to repay bank debt.  Cash and cash equivalents increased by £0.2m during the period after capital expenditure of £6.2m, interest payments of £2.6m and payments related to lease liabilities of £0.3m.

The Group has sufficient cash resources and covenant headroom to support its current organic growth plans.

REVOLUTION BEAUTY GROUP PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 28 FEBRUARY 2026

	Notes	Year ended 28 February 2026	Year ended 28 February 2025
		£'000	£'000
Revenue	4	102,141	142,581
Cost of sales		(64,469)	(88,135)
Gross profit		37,672	54,446
Marketing and distribution costs		(27,216)	(36,729)
Administrative expenses
- General administrative expenses		(27,997)	(29,140)
- Impairment losses on financial assets		(902)	-
Provision for onerous contracts		(1,231)	-
- Impairment of property, plant and equipment and right-of-use assets		(3,771)	(2,296)
- Reversal of impairment of property, plant and equipment and right-of-use assets		402	660
Total administrative expenses		(33,499)	(30,776)
Other operating income		-	-
Operating Loss		(23,043)	(13,059)
Finance income		132	169
Onerous contract provision unwind		(122)
Finance costs		(7,612)	(3,888)
Loss before taxation		(30,645)	(16,778)
Income tax expense		(241)	(456)
Loss for the year		(30,886)	(17,234)
Other comprehensive expense for the period, net of tax
Exchange differences		1,131	(557)
Total comprehensive loss for the year		(29,755)	(17,791)
Loss per share (p)	5	(5.6)	(5.4)
Diluted earnings per share (p)	5	(5.6)	(5.4)
Adjusted EBITDA	6	(8,174)	4,684

The above consolidated condensed statement of comprehensive income should be read in conjunction with the accompanying notes.

REVOLUTION BEAUTY GROUP PLC          (Company Number: 11666025)

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2026

	Notes	28 February 2026	28 February 2025
ASSETS		£'000	£'000
Non-current assets
Intangible assets		4,357	4,734
Property, plant and equipment		7,867	10,400
Right-of-use assets		851	1,209
Other receivables		1,172	1,944
		14,247	18,287
Current assets
Inventories	8	18,999	21,435
Trade and other receivables	9	26,882	35,404
Reimbursement asset		-	149
Corporation tax receivable		-	46
Cash and cash equivalents		5,864	5,690
Total current assets		51,745	62,724
Current liabilities
Lease liabilities		(679)	(952)
Trade and other payables	10	(52,168)	(55,450)
Deferred consideration		(866)	(600)
Corporation tax payable		(3)	-
Deferred tax		(162)	-
Provisions		(1,314)	(401)
Borrowings	7	(1,058)	(31,892)
Total current liabilities		(56,250)	(89,295)
Net current liabilities		(4,505)	(26,571)
Total assets less current liabilities		9,742	(8,284)
Non-current liabilities
Lease liabilities		(381)	(354)
Borrowings		(29,486)	-
Provisions		(540)
Deferred consideration		(10,408)	(8,423)
Total non-current liabilities		(40,815)	(8,777)
Net liabilities		(31,073)	(17,061)
Equity
Share capital		8,697	3,199
Share premium		113,520	103,487
Warrant reserve		7,239	7,239
Merger reserve		14,860	14,860
Translation reserve		1,173	42
Retained earnings		(176,562)	(145,888)
Total deficit		(31,073)	(17,061)

REVOLUTION BEAUTY GROUP PLC

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 28 FEBRUARY 2025

		Share capital	Share premium	Warrant reserve	Merger reserve	Translation reserve	Retained earnings	Total  equity
		£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 29 February 2024		3,185	103,487	7,239	14,860	599	(129,192)	178
Loss for the period		-	-	-	-	-	(17,234)	(17,234)
Other comprehensive expense net of taxation:
Foreign operations - foreign currency translation differences		-	-	-	-	(557)	-	(557)
Total comprehensive loss for the period		-	-	-	-	(557)	(17,234)	(17,791)
Transactions with owners in their capacity as owners:
Issue of shares, net of transaction costs		14	-	-	-	-	-	14
Share-based payments		-	-	-	-	-	538	538
Total transactions with owners		14	-	-	-	-	538	552
Balance at 28 February 2025		3,199	103,487	7,239	14,860	42	(145,888)	(17,061)

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

REVOLUTION BEAUTY GROUP PLC                 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 28 FEBRUARY 2026

		Share capital	Share premium	Warrant reserve	Merger reserve	Translation reserve	Retained earnings	Total  deficit
		£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 28 February 2025		3,199	103,487	7,239	14,860	42	(145,888)	(17,061)
Loss for the period		-	-	-	-	-	(30,886)	(30,886)
Other comprehensive expense net of taxation:
Foreign operations - foreign currency translation differences		-	-	-	-	1,131	-	1,131
Total comprehensive loss for the period		-	-	-	-	1,131	(30,886)	(29,755)
Transactions with owners in their capacity as owners:
Issue of shares, net of transaction costs		5,498	10,033	-	-	-	-	15,531
Share-based payments		-	-	-	-	-	212	212
Total transactions with owners		5,498	10,033	-	-	-	212	15,743
Balance at 28 February 2026		8,697	113,520	7,239	14,860	1,173	(176,562)	(31,073)

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

REVOLUTION BEAUTY GROUP PLC

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28 FEBRUARY 2026

	Year ended 28 February 2026	Year ended 28 February 2025
	£'000	£'000
Cash flows from operating activities
Loss for the financial period	(30,886)	(17,234)
Adjustments for:
Taxation	241	456
Finance costs	7,734	3,888
Finance income	(132)	(169)
Depreciation of property, plant and equipment and right-of-use assets	5,057	4,210
Net impairment of property, plant and equipment and right-of-use assets	3,369	1,636
Amortisation of intangible assets	672	647
Losson disposal of property, plant and equipment	-	-
Loss/(profit) on disposal of intangible assets	-	-
Impairment losses on financial assets	902	-
Equity settled share-based payment expense	212	538
Provisions movement	1,453	(6,221)
Movements in working capital:
Movement in inventories	2,436	19,340
Movement in receivables	9,573	13,296
Movement in payables	(3,469)	(11,138)
Cash used in operating activities	(2,838)	9,249
Income tax refunded/(paid)	-	(625)
Net cash used in operating activities	(2,838)	8,624
Cash flows from investing activities
Purchase of intangible assets	(491)	(433)
Purchase of property, plant and equipment	(5,704)	(6,566)
Finance income	-	-
Net cash used in investing activities	(6,195)	(6,999)
Cash flows from financing activities
Interest paid	(2,596)	(2,591)
Proceeds from issue of shares, net of transaction costs	15,531	14
Repayment of bank loans	(4,000)	-
Payment of lease liabilities	(318)	(1,327)
Net cash generated from financing activities	8,617	(3,904)
Cash and cash equivalents
Net (decrease) in the period	(416)	(2,279)
Cash and cash equivalents at the beginning of the period	5,690	8,636
Effects of exchange rate changes	590	(667)
Cash and cash equivalents at the end of the period	5,864	5,690

REVOLUTION BEAUTY GROUP PLC

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2026

1.       General information

Revolution Beauty Group plc ("the Company") is a public company limited by shares, and incorporated in England and Wales, with company number 11666025, and domiciled in the United Kingdom. The Company listed on the Alternative Investment Market (AIM) on 19 July 2021. The address of the registered office is 2-3 Sheet Glass Road, Cullet Drive, Queenborough, Kent, ME11 5JS.

The group ("the Group") consists of Revolution Beauty Group Plc and all of its subsidiaries.

The Board of Directors approved this financial information on 20 July 2026.

2.       Material accounting policies

Basis of preparation

The financial information set out herein does not constitute the Company's Annual Report and Accounts for the year ended 28 February 2026. The Annual Report and Accounts for 2025 have been delivered to the Registrar of Companies and those for 2026 will be delivered shortly.

Whilst the financial information included in this results announcement has been prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006, this announcement does not itself contain sufficient information to comply with UK-adopted international accounting standards.

Basis of consolidation

The consolidated financial statements incorporate those of Revolution Beauty Group plc and all of its subsidiaries.

Where the Company has control over an investee, it is classified as a subsidiary. The company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

De-facto control exists in situations where the company has the practical ability to direct the relevant activities of the investee without holding the majority of the voting rights. In determining whether de-facto control exists the company considers all relevant facts and circumstances, including:

•  The size of the company's voting rights relative to both the size and dispersion of other parties who hold voting rights

•  Substantive potential voting rights held by the company and by other parties

•  Other contractual arrangements

•  Historic patterns in voting attendance.

The consolidated financial statements present the results of the company and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

Going concern

The Directors have considered the Group's ability to continue as a going concern, the period considered in making this assessment is the period ending 31 July 2027. In forming this assessment, the Directors have considered the available cash, current trading performance, forecast profitability and liquidity, forecast compliance with financial covenants and sensitivities together with the mitigating actions available to management.

The key assumptions underpinning the going concern assessment include the delivery of cost reduction initiatives, management of discretionary expenditure, improvements in working capital and other liquidity preservation measures. The Directors recognise that the successful delivery of these actions, together with the assumptions underpinning the base case forecast, including the Board's current assessment of ongoing commercial matters and claims, is subject to inherent uncertainty and is not wholly within the Group's control. These assumptions are subject to uncertainty and, if not achieved, would adversely affect the Group's forecast profitability, and compliance with the liquidity covenant.

The Directors have performed a severe but plausible downside scenario which assumes a reduction in the realisation of planned cost saving initiatives or improvements in working capital, which in the absence of further successful mitigating actions, would also result in the Group breaching the financial covenants under its financing arrangements during the assessment period.

As part of its ongoing arrangements with its lenders under the amended and extended revolving credit facility, the Group provides a rolling thirteen-week cash flow forecast to its lenders on a fortnightly basis (FY25: weekly).

After considering the Group's current liquidity position, including the proceeds of the equity raise, the amended and extended revolving credit facility, the forecast cash flows and the mitigating actions available to management, the Directors have concluded that it remains appropriate to prepare the financial statements on the going concern basis and have a reasonable expectation that the Group will have adequate resources to continue in operational existence and meet its liabilities as they fall due for at least twelve months from the date of approval of these financial statements. The financial statements have therefore been prepared on the going concern basis. They do not include any adjustments that would result if the Group were unable to continue as a going concern.

However, the Directors recognise that the Group's ability to maintain sufficient liquidity to comply with its financing covenants remains dependent on the successful delivery of the assumptions underpinning the base case forecast, including the outcome of ongoing commercial matters and claims, together with the successful implementation of management's planned mitigating actions. As these matters are subject to uncertainty and are not wholly within the Group's control, the Directors have concluded that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern and therefore may be unable to realise its assets and discharge its liabilities in the normal course of business.

3.       Segmental reporting

IFRS 8 Operating Segments requires that operating segments be identified on the basis of internal reporting and decision-making. The Group identifies operating segments based on internal management reporting that is regularly reported to and reviewed by the Board of directors, which is identified as the chief operating decision maker. The Group sells its products through several geographic areas as set out below and through various revenue channels. All of these channels are managed through one central team and structure, inventory is also purchased centrally. Therefore, management information is reported as one operating segment, being revenue from sales of products and inventory purchasing.

4.       Revenue

An analysis of the Group's revenue is as follows:	Year ended 28 February 2026	Year ended 28 February 2025
	£'000	£'000
Revenue analysed by class of business
Digital	18,465	28,749
Store Groups	83,676	113,832
	102,141	142,581
Revenue analysed by geographical location
United Kingdom	33,649	44,167
United States of America	22,190	37,540
Rest of World	46,302	60,874
	102,141	142,581

5.       Earnings per share

The Group reports basic and diluted earnings per common share. Basic earnings per share is calculated by dividing the profit attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period.

Diluted earnings per share is determined by adjusting the profit attributable to common shareholders by the weighted average number of common shares outstanding, taking into account the effects of all potential dilutive common shares, including options.

	Year ended 28 February 2026	Year ended 28 February 2025
Loss attributable to shareholders (£'000)	(30,886)	(17,234)
Weighted average number of shares ('000)	554,628	319,008
Basic earnings per share (p)	(5.6)	(5.4)
Total comprehensive expense attributable to the owners of the company (£'000)	(30,886)	(17,234)
Weighted average number of shares ('000)	554,628	319,008
Dilutive effect of share options	-	-
Diluted earnings per share (p)	(5.6)	(5.4)

Pursuant to IAS 33, options whose exercise price is higher than the value of the Company's security were not taken into account in determining the effect of dilutive instruments. The calculation of diluted earnings per share does not assume conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on earnings per share.

6.       Adjusted performance measures

The Group uses a number of Alternative Performance Measures ("APMs") in addition to those measures reported in accordance with IFRS. Such APMs are not defined terms under IFRS and are not intended to be a substitute for any IFRS measure. The Directors believe that the APMs are important when assessing the underlying financial and operating performance of the Group.

The APMs are used internally in the management of the Group's business performance, budgeting and forecasting, and for determining Executive Directors' remuneration and that of other management throughout the Group. The APMs are also presented externally to meet investors' requirements for further clarity and transparency of the Group's financial performance. Where items of profits or costs are being excluded in an APM, these are included elsewhere in our reported financial information as they represent actual income or costs of the Group. 

The Group's Alternative Performance Measures are set out below.

Adjusted EBITDA

Adjusted EBITDA is defined as Operating Profit/Loss adjusted for depreciation and amortisation, impairments and reversals of impairment, profits and losses on the disposal of assets, share based payment charges and releases and adjusting items. 

	Year ended 28 February 2026	Year ended 28 February 2025
	£'000	£'000
Operating (loss)	(23,043)	(13,059)
Amortisation of intangible assets	672	647
Depreciation of property, plant and equipment	5,057	4,210
Impairment of property, plant and equipment	3,369	1,636
Loss on disposal of asset	-	1
Share-based payments	212	538
Operating items adjusted for:
Restructuring costs	1,552	364
Provision for settlement of legal cases	-	600
Non-recurring legal fees	1,736	1,242
Provision for onerous contracts	1,231	-
Provision charges during the period related to non-strategic inventory	-	8,353
Inventory provision relating to transition to distribution model	138	-
Expected credit loss on Adam Minto receivable	902	152
Adjusted EBITDA	(8,174)	4,684
Depreciation, amortisation and impairments	(9,098)	(6,493)
Adjusted EBIT	(17,272)	(1,809)
Net finance (costs)	(7,734)	(3,719)
Adjusting items:
Loss on loan modification	2,819	-
Adjusted PBT	(22,187)	(5,528)

Operating adjusting items:

During the financial year the Group incurred adjusting restructuring and redundancy costs of £1,553k. This is due to the Group entering a collective consultation process in the second part of the year as part of its cost reduction program following sales trends in recent years.

On the 21 July 2023 the Financial Conduct Authority ('FCA') notified the Company that it had commenced an investigation into potential breaches of the Market Abuse Regulation, in relation to matters relating to the period from July 2021 to September 2022. In engaging with the FCA, the Company has incurred legal and professional costs of £0.2m (FY25: £0.8m).  The FCA notified the Company after the period end that it will take no further action in this regard, so these costs are not expected to re-occur.

During the year, the Group also incurred legal fees associated with £1.2m relating to the formal sales process and review of funding options announced on 21 May 2025 and associated activities. There were also fees of £0.2m due to overrun of audit fees due to the funding review and refinancing process activities, £0.2m for debt advice associated with the refinance and £0.1m relating to employment restructuring advice.

There is a £1.2 million onerous contract charge relating to non-cancellable contractual commitments within the Group's ecommerce operations. The charge reflects the present value of unavoidable net costs where the costs of fulfilling the contracts exceed the economic benefits expected to be received.

The Group incurred £0.1 million of costs relating to the transition of the Group's Australian operations from a direct to market model to a third-party distributor model. These costs include an inventory write down recognised to reflect net realisable value based on contracted distributor pricing following the change in route to market. The charge arises from a one-off strategic change in the Group's operating model.

An expected credit loss of £0.9 million has been recognised in respect of a settlement receivable due from a former director, Adam Minto. In August 2025, the founder and former director reengaged with the business on a consultancy basis, supporting operational priorities including assisting in assessing and liaising with manufacturers and suppliers to ensure product quality, cost efficiency, reliability of supply and alignment with the Company's long term business objectives.

The receivable was initially recognised as a financial asset in accordance with IFRS 9. During the period, following missed contractual payments and a decision by the Board not to pursue immediate recovery due to the importance of the services received by the Group under the consultancy agreement, the asset was assessed as credit impaired.  Nevertheless, the board continues to reserve its legal rights in relation to this receivable and keeps under review its decision not to currently pursue recovery.

7.       Borrowings

	28 February 2026	28 February 2025
	£'000	£'000
Bank revolving credit facility	30,544	31,892
	30,544	31,892
Analysed as:
Payable within one year	1,058	31,892
Payable after one year	29,486	-

8.       Inventories

	28 February 2026	28 February 2025
	£'000	£'000
Finished goods and goods for resale	18,999	21,435
Value of inventory provided for at period end	(9,822)	(10,492)
Value of inventory written down/(written back) during period	1,828	2,661

The total cost of inventories recognised as an expense in cost of sale during the period was £61,840,000 (2025: £87,824,000).

As set out in note 3 to the financial statements in the Group's Annual Report. The Group's inventory provision methodology is made up of a net realisable value (NRV) component and a slow-moving component. The slow-moving component includes a provision for inventory that has recently been launched and therefore has limited sales history and also for more mature inventory, which is assessed based on its sales cover, which gives rise to the key source of estimation uncertainty.

The NRV provision is determined by assessing the latest sales price of an SKU, less the cost of selling it, against the cost of purchasing it. There is judgment applied in assessing the costs included in selling each SKU. The Group determines cost to sell on an average basis across all SKUs. The cost to sell includes the incremental costs of selling, such as commissions, as well as non-incremental selling costs including expected marketing costs and expected costs to hold the inventory until the anticipated time of sale.

9.       Trade and Other Receivables

	28 February 2026	28 February 2025
	£'000	£'000
Trade Receivables	24,152	31,617
Other Receivables	220	1,233
Prepayments	2,510	2,554
	26,882	35,404

10.     Trade and Other Payables

Trade and other payables are initially recognised at fair value less transaction costs and subsequently measured at amortised cost using the effective interest rate method, with all movements being recognised in the statement of comprehensive income. Cost is considered to approximate fair value.

	28 February 2026	28 February 2025
	£'000	£'000
Trade Payables	30,008	31,216
Other Taxation and Social Security	1,115	1,056
Other Payables	124	143
Accruals and Contract Liabilities	20,921	23,035
	52,168	55,450

-ends-

 

END