Warpaint London PLC Ward & Hagon Contract Renewal (6556P)

TIDMW7L

RNS Number : 6556P

Warpaint London PLC

19 February 2021

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 it has renewed its contract with Ward & Hagon Management Consulting LLP ("Ward & Hagon") (the "Contract").

As announced on 6 February 2020, the Company appointed Ward & Hagon, a provider of practical business solutions, to assist it in implementing its strategic growth plan. As a result of a successful initial period, whereby they assisted the Group in accessing new retail channels (including Tesco) the Company is pleased to announce that the Contract with Ward & Hagon, has been renewed for a further 12 months.

The Contract has a total annual value of GBP210,000 (which will be satisfied from the Group's operating cash flows), and includes the services of Paul Hagon, an executive director of the Company and Martyn Ward, amongst other members of the Ward & Hagon team . In addition Ward & Hagon will be paid a commission of 3% on all sales generated from their introductions in the 12 month period from the point of first sale, and 4% on all sales generated from their introductions in the 12 month period thereafter.

The board is of the view that the services provided under the Contract represent value to shareholders through assisting the Company achieving is near term objectives. Accordingly, Ward & Hagon will continue to focus on assisting the Group access new retail channels both in the UK and overseas.

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 N+1 Singer, 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                             c/o IFC 
  Sam Bazini - Chief Executive Officer 
  Eoin Macleod - Managing Director 
  Neil Rodol - Chief Financial Officer 
 N+1 Singer (Nominated Adviser & Joint 
  Broker) 
  Shaun Dobson, Jen Boorer, Alex Bond - 
  Corporate Finance 
  Tom Salvesen - Corporate Broking           020 7496 3000 
 Shore Capital (Joint 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 is made up of two divisions.

The largest division 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, this division supplies own brand white label cosmetics produced for several major high street retailers. The Group also sells cosmetics using our other own brand names of Man'stuff, Body Collection, Vintage, Very Vegan, and Chit Chat.

The other division trades in close-out and excess inventory of branded cosmetics and fragrances from around the world.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

CNTEAEAPFSEFEAA

(END) Dow Jones Newswires

February 19, 2021 02:00 ET (07:00 GMT)