Revolution Beauty Group has reported a sharp fall in half-year sales (H1 2026) while losses before tax almost doubled.
The firm says decisive action since the period end, heading into H2 2026, has stabilised the business and restored profitability.
The AIM-listed beauty brand, which sells across retail and online channels, saw revenue drop 32% to £49.4 million for the six months to 31st August 2025.
Adjusted EBITDA loss widened to £12.5m while losses before tax were £18.4m, compared with £10.9m a year earlier.
The London-headquartered company cited lingering disruption from prior strategic and operational issues, clearance sales under previous management, and costs linked to retail space and brand changes.
However, following the period end, the group completed a successful refinancing and raised £16.5m in new equity, which reduced net debt from £30.2m to £21m by late November and increased its cash balance to £7m.
The fundraising also paved the way for the return of co-founders Tom Allsworth (CEO) and Adam Minto (consultant), whose re-appointment has been “well received” by wholesale partners. They returned just before the H1 2026 period end.
The company said the duo has moved quickly to restructure and refocus the business.
Headcount has been cut from 205 to 123, pricing adjustments have been negotiated with US retailers to offset tariff pressures and a new product pipeline is in development for spring 2026.
The company reportedly returned to positive EBITDA in September and October after these early cost-saving actions.
It expects to deliver around £4m in adjusted EBITDA for the second half of FY26, establishing an annualised run rate of £8-10m by year-end.
The figure was revised in August after an initial expectation of between £6m-£6.5m.
This revision came two months after a collapsed takeover bid from Frasers Group, who snubbed the chance to acquire the firm.
It had a market cap of £500m at the time of its IPO in 2021, but this now sits at under £25m, with the company’s share price now at 2.8p.
“Although I was not part of the business during the six-month reporting period, it is clear that the group faced a number of significant challenges,” said Allsworth.
“I recognise the impact this has had on our people, our partners and our performance. However, with the actions taken since the period end, we have laid the foundations for a more disciplined, focused and resilient business.
“I would like to thank all our team for their patience, professionalism and commitment throughout this period of transition.
“Their dedication has been essential in stabilising the business and positioning us for the next phase of growth, and I am pleased that we moved back to generating positive EBITDA in September and October.
“We are now entering an exciting time for Revolution Beauty as we get back to doing what we do best – delivering innovation, creativity and affordable products to our customers around the world.”
Iain McDonald, chairman of Revolution Beauty, added: “Having been asked to join as chairman during the first half, it was apparent very quickly that the key to restoring the fortunes of Revolution Beauty was to bring the founders back into the business.
“With the announcement of their return and their support of the placing, we were able to gain the confidence of additional investors to support a total £16.5m oversubscribed equity raise. This enabled us to agree a new facility with our banking group.
“I would like to give my personal thanks to Tom and Adam, all of those who backed the equity raise and our banking partners.
“With their support, Revolution Beauty now has a firm and stable platform from which to restore profitability and shareholder value.”