1 February 2024
Warpaint London
PLC
("Warpaint", the "Company" or the "Group")
Ward & Hagon Contract
Renewal
Warpaint London plc (AIM: W7L), the
specialist supplier of colour cosmetics and owner of the W7 and
Technic brands, announces that on 31 January 2024, it renewed its
contract (the "Contract") with Ward & Hagon Management
Consulting LLP ("Ward & Hagon") for a period of 24 months,
effective 1 January 2024. At the end of the 24 month period, the
Contract will continue on the same terms subject to a six month
notice period which can be served by either party.
The Company originally appointed
Ward & Hagon, a provider of practical business solutions, in
February 2020 to assist it in implementing its strategic growth
plan. The contract was renewed on 19 February 2021 for a period of
12 months and was again renewed on 1 March 2022 for a period of 24
months effective from 1 January 2022. The objective of the Contract
renewal is to continue to accelerate Warpaint's growth and drive
further business transformation.
The Contract has a total fixed value
over 24 months of £450,000 (£225,000 per annum) and includes the
services of Paul Hagon, an executive director of the Company and
Martyn Ward, together with other members of the Ward & Hagon
team. In addition, Ward & Hagon has an opportunity under the
Contract to earn up to £175,000 per annum through non-discretionary
performance related sales bonuses and commissions. Payments under
the Contract will be satisfied from the Group's operating cash
flows.
The Board is of the view that Ward
& Hagon has been important to the Group's success over the last
few years and the services provided under the Contract represent
good value to shareholders.
Related Party Transaction
Paul Hagon, an executive director of
Warpaint, is a member of Ward & Hagon. Accordingly the
renewal of the Contract is classified as a related party
transaction pursuant to the AIM Rules for Companies. The
independent directors of the Company (being all executive and
non-executive directors except Mr Hagon), having consulted with
Shore Capital, the Company's Nominated Adviser, consider that the
terms of the Contract renewal are fair and reasonable insofar as
the Company's shareholders are concerned.
Enquiries:
|
Warpaint London
Sam Bazini - Chief Executive
Officer
Eoin Macleod - Managing
Director
Neil Rodol - Chief Financial
Officer
|
c/o IFC
|
|
Shore Capital
(Nomad and Broker)
Patrick Castle, Daniel
Bush - Corporate Advisory
Fiona Conroy - Corporate
Broking
|
020 7408 4090
|
|
IFC
Advisory (Financial PR & IR)
Tim Metcalfe, Graham Herring,
Florence Chandler
|
020 3934 6630
|
Warpaint London plc
Warpaint sells branded cosmetics under the lead
brand names of W7 and Technic. W7 is sold in the UK primarily to
retailers and internationally to local distributors or retail
chains. The Technic brand is sold in the UK and continental Europe
with a significant focus on the gifting market, principally for
high street retailers and supermarkets. In addition, Warpaint
supplies own brand white label cosmetics produced for several major
high street retailers. The Group also sells cosmetics using its
other brand names of Man'stuff, Body Collection, Very Vegan, and
Chit Chat.