Revolution Beauty share price tumbles as auditors downgrade profit

Revolution Beauty share price tumbles as auditors downgrade profit

THE WHAT? Having warned investors that its 2021/22 results would be delayed and downgraded its 2022/23 forecast, Revolution Beauty’s share price has tumbled, according to a report published by UK Investor Magazine. Now, in another blow to the beleaguered make-up manufacturer, its auditors have significantly reduced its estimated pre-tax profit.

THE DETAILS Auditors have raised accounting issues, including revenue recognition, bad debt provisions and stock provisions, with management, which could have a material impact on FY results, sending shares down to 8.2p – a far cry from the 160p at flotation just over a year ago.

THE WHY? Revolution Beauty has stressed that its net debt position remains unaltered by any changes and has been at pains to point out that it has sufficient liquidity thanks to its £40 million revolving credit facility. However, poor retail demand in the US and the loss of sales in Russia and Ukraine have impacted results.

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