Shares in Revolution Beauty suspended

SHARES in Boohoo-backed Revolution Beauty will be suspended after it failed to complete its audit for the financial year.

The cosmetics retailer said that it will have to pause trading tomorrow as it delayed its full-year results.

The share price is down about 90pc since it listed on London’s junior market just over a year ago.

The stock fell 2.8pc to 17p in afternoon trading, with the company now worth £52m, compared with a market capitalisation of £495m when it floated.

Earlier this month, online fashion retailer Boohoo upped its stake in Revolution Beauty to 7pc, making it one of its biggest shareholders. It said the investment reflected its belief in “the growth potential of Revolution Beauty” and it intends to be “a supportive stakeholder and long-term partner”.

It already sells Revolution Beauty’s products on several of its websites, including Debenhams, which it also owns. Nick Bubb, an independent retail analyst, said “Boohoo’s recent equity investment in the embattled Revolution Beauty isn’t looking too clever”.

The make-up seller said it expects to publish its full results “within a matter of weeks” after which trading would restart. It has already flagged accounting issues raised by auditors relating to revenue recognition, as well as its stock and debt figures, which could result in a material impact on the company’s 2022 results.

It also warned it would record a loss for the six months to Aug 31 amid Russia’s invasion of Ukraine as both countries are key markets for the company.

The firm was launched in 2014 by chief executive Adam Minto and executive chairman Tom Allsworth.

The pair, who worked in beauty manufacturing for almost three decades before setting up shop, still own almost 30pc of the company, and banked £15.6m each at the float.