Shares in Revolution Beauty Group plc climbed 28% today on the news that The Financial Conduct Authority had ended its three-year investigation into the firm.
The regulator said it would take no action against the AIM-listed beauty brand, which it was probing over potential market abuse – examining events and accounting issues that took place between July 2021 and September 2022.
It previously discontinued a probe into co-founders Adam Minto (pictured left) and Tom Allsworth (right), who recently returned to the business.
It brings to a conclusion an extended period of upheaval at Revolution Beauty, which sells across retail and online channels.
In 2023 shareholder boohoo effectively removed CEO Bob Holt OBE and chairman Derek Zissman from the board, while the following year former CEO Minto agreed to pay a settlement of £2.9 million to the cosmetics brand.
As sales slumped into 2025, a potential takeover by Frasers Group collapsed. Then in November 2025 the firm reported another sharp fall in half-year sales (H1 2026) while losses before tax almost doubled.
However it said decisive action since the period end, heading into H2 2026, has stabilised the business and restored profitability, while it completed a successful refinancing and raised £16.5m in new equity following the period end.
The fundraising also paved the way for the return of co-founders Allsworth as CEO and Minto as a consultant. The duo are said to have moved quickly to restructure and refocus the business.
Headcount was immediately cut from 205 to 123, pricing adjustments were negotiated with US retailers to offset tariff pressures and a new product pipeline was put in development.
The company reportedly returned to positive EBITDA in September and October after these early cost-saving actions.
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In a notice to the London Stock Exchange publicising the end of the FCA’s investigation, chairman Iain McDonald stated: “The company has cooperated fully with the FCA for the last three years and has taken on board any comments with a constructive spirit implementing a wider range of governance and best practice.
“It is fitting to receive this news from the FCA at a time when Tom and Adam are back involved in the business and have reinvigorated it with a clear strategy.
“The early signs that this strategy is working are very encouraging, and the future is much brighter for the Revolution brand.”
Shares in Revolution are up 87% in the year to date but down 25% over 12 months.