Warpaint London Acquires Barry M Brand for £1.4 Million and Reports FY25 Trading Update

Barry M acquired out of administration for £1.4 million – why this is shrewd

Warpaint London has agreed to acquire the Barry M brand for £1.4 million in cash, subject to court approval expected later today. This is an asset purchase out of administration – Warpaint is buying the Barry M brand, IP (intellectual property), stock and order book, but not taking on any manufacturing capability or liabilities. In plain English: the brand and its future sales pipeline come across, the problems do not.

Barry M is a long-standing value cosmetics player that fits squarely alongside Warpaint’s W7 and Technic. The real jewel here is distribution: Barry M has one metre plus stands in more than 1,300 stores, including Superdrug (650), Boots (420), Sainsbury’s (120), Tesco (50) and Priceline Australia (90), plus online direct-to-consumer. Barry M generated approximately £15 million of revenue in the year ended 28 February 2025.

Warpaint is funding the deal from existing cash resources. The Group had cash balances of £18 million as at 31 January 2026 (vs £9 million a year earlier), so the £1.4 million price tag is small relative to its cash pile.

Why it matters: this looks like a value buy. At the headline level, £1.4 million for a brand with c.£15 million of revenue implies a very low purchase multiple. Caveat – Warpaint is buying the brand and stock, not the full operating company – but the included order book suggests near-term continuity of sales. Manufacturing will need to be handled by Warpaint’s sourcing network, which is a core strength, and no liabilities come across. That is tidy.

Strategic fit: shelf space, brand recognition and a faster route into UK retailers

Warpaint’s CEO says Barry M is expected to accelerate penetration into key UK retail channels. That makes sense. Superdrug and Boots already carry Barry M at scale with prominent fixtures, which is valuable real estate in cosmetics. The overlap in price point and audience with W7 and Technic should make product development and sourcing efficient.

The brand also adds another door into grocers (Sainsbury’s and Tesco) and exposure to Australia via Priceline. Cross-selling and fixture optimisation are the medium-term levers here, though any major merchandising changes will depend on retailer agreements. Profitability for Barry M is not disclosed, but Warpaint’s track record with value brands and sourcing could be meaningful.

FY25 trading update: modest growth, stronger gross margin, lower EBITDA

Group revenue for FY25 is expected to be approximately £105 million (2024: £102 million) at an improved gross margin. That is roughly 2.9% year-on-year growth, aided by £12 million of revenue from the Brand Architekts acquisition completed in February 2025. The Group also delivered its planned second-half roll-out into new retailers including Superdrug, Tesco, Boots, Tigota, Etos and CVS.

Headwinds were real and clearly flagged. Revenue was negatively impacted by the closure of Bodycare (approximately -£3 million, a key Technic customer), a tough consumer and customer environment (approximately -£4 million), and stalled US momentum earlier in the year from tariff uncertainty (approximately -£2 million).

Group Adjusted EBITDA is expected to be approximately £22 million (2024: £25 million), with the decline reflecting those headwinds. Adjusted EBITDA is a profit measure before interest, tax, depreciation and amortisation, adjusted for foreign exchange, share-based payments and acquisition-related expenses.

Brand Architekts: profit in year one and clear synergies

Brand Architekts contributed £12 million of revenue and a positive Adjusted EBITDA of £0.8 million in FY25. That compares with an approximate £1 million loss in 2024 before Warpaint acquired it. Management says the integration has enabled improved product sourcing and delivered the expected year-one synergies. On that evidence, the M&A playbook is working.

Key numbers at a glance

Metric	FY25 / latest	Prior / reference	Comment
Revenue	Approximately £105 million	£102 million (2024)	Improved gross margin
Adjusted EBITDA	Approximately £22 million	£25 million (2024)	Impacted by Bodycare closure, macro, US tariffs
Brand Architekts – revenue	£12 million	n/a	Acquired February 2025
Brand Architekts – Adjusted EBITDA	+£0.8 million	Approximate £1 million loss (2024)	Year-one synergies delivered
Cash balance	£18 million (31 Jan 2026)	£9 million (31 Jan 2025)	Strong balance sheet
Barry M purchase price	£1.4 million (cash)	n/a	Brand, IP, stock, order book; no liabilities or manufacturing
Barry M revenue (reference)	Approximately £15 million	Year ended 28 Feb 2025	Historical scale indicator; profitability not disclosed

Note: All FY25 figures remain subject to audit. Adjusted EBITDA is adjusted for foreign exchange, share-based payments and acquisition-related expenses.

Outlook for 2026: organic growth and more roll-outs on deck

Management expects a return to organic growth across the Group and plans to update on further significant customer roll-outs with the full-year results in late April 2026. The focus remains on improving margins and expanding distribution.

Given the cash position, Warpaint has room to invest in inventory to support new listings and to pursue selective deals like Barry M. The US market is one to watch after last year’s tariff-related pause. A clearer tariff backdrop should help rebuild momentum, but timing is not disclosed.

My take: a canny brand buy with near-term earnings resilience

Positives:

• Barry M brings large-scale UK retail distribution and brand equity for a modest outlay, with no liabilities attached.
• Gross margin improved in FY25 despite a choppy backdrop – a quiet but important signal on pricing and sourcing discipline.
• Brand Architekts turned profitable within the first year under Warpaint, supporting the integration playbook.
• Cash of £18 million provides flexibility and reduces risk.

Watch-outs:

• Group Adjusted EBITDA down to approximately £22 million from £25 million as macro and the Bodycare collapse bit – a reminder that value cosmetics are not immune to retail disruption.
• US momentum stalled earlier in the year due to tariff uncertainty; the recovery path is not disclosed.
• Barry M profitability is not disclosed; execution will hinge on re-sourcing and maintaining retailer shelf space post-administration.

Net-net, the Barry M acquisition looks well-priced and strategically neat. If Warpaint can stabilise Barry M supply, protect those one metre fixtures, and weave the brand into its sourcing engine, the return on this £1.4 million cheque could be attractive.

What to look for at April results

• Detail on Barry M integration plans – timelines to resume steady supply, expected near-term margin profile, and retailer engagement.
• Further new customer roll-outs – names, doors and initial order sizes to gauge 2026 run-rate.
• Gross margin trend – can the FY25 improvement be sustained or built upon with mix and sourcing gains.
• US update – clarity on tariffs and whether listings or orders are restarting.
• Cash conversion and inventory levels – particularly important with a larger roll-out slate.

Quick definitions

• Out of administration: buying assets from a company that has entered administration (insolvency protection). Assets can be acquired without taking on old liabilities.
• IP: intellectual property such as trademarks and brand rights.
• Adjusted EBITDA: earnings before interest, tax, depreciation and amortisation, adjusted here for foreign exchange, share-based payments and acquisition-related costs.

Final thought: despite the tougher 2025, Warpaint heads into 2026 with more brands, more doors and more cash. Execution on Barry M and the next wave of roll-outs will set the tone for the year.