The rift between Revolution Beauty Group PLC and major shareholder boohoo Group PLC is one step closer to being resolved with today’s changing of the guard.
Walgreens & Boots alum Lauren Brindley will replace Bob Holt, who resigned today, to lead the beleaguered AIM-listed makeup group, as announced in a regulatory statement. will take
Alister McGeorge will transition to the role of Non-Executive Chairman when Brindley officially becomes Chairman on September 18.
Holt has already offered to resign The retailer, which has been seeking a management change since June, agreed in July as part of a peace deal with 26.6% shareholder Boohoo.
As part of the transformation, Colin Henry and Chris Fry have been appointed as independent non-executive directors, replacing Jeremy Schwartz, Rachel Maguire and Matthew Eato.
“I am thrilled to be joining Revolution Beauty at such a pivotal time for the group,” said Brindley.
But Brindley faces many challenges during this crucial time.
Full-year results highlight huge debt pile
In terms of Revolution’s financial results, Group income increased 3.2% year-on-year to £187.8m and gross margin improved 190 basis points to 40.4%.
However, the Group was plagued with high legal fees, professional fees and restructuring costs, resulting in a reduction in cash balances and a large pile of debt.
Total cash at the end of the period was £11m, down from £15.6m in 2022 and net debt increased from £8.4m to £21m following the full withdrawal of £32m of banking equipment.
Underlying earnings were also weak, with higher marketing and staff costs leading to an EBITDA loss of just £800,000 in 2022, equivalent to a loss of £7.5m.
These legal costs are independent research It traces back to past sales and personal loans made by former chief executive Adam Mint, who resigned with immediate effect in November 2022.
Will the Revolution’s 3rd Headmaster finally be able to steer the ship in the right direction?
Judging by shareholder reaction to today’s results, Brindley may have to climb as steep a hill as Revolution’s stock loss.
Revolution’s earnings fell 17%, but the group’s market capitalization remains at £88.5m, up 15.5% year-to-date.