Cosmetics brand Revolution Beauty has revealed it returned to a yearly profit as it sets its sights on a makeover under new management following a turbulent two years.
The company said it has drawn a line under the issues of the past, which included a dispute with its former boss and a spat with its shareholder Boohoo.
In its annual financial results published on Wednesday, it reported a pre-tax profit of £11.4 million for the year to the end of February, up from a loss of £33.9 million the prior year.
Sales edged up by just 2% year on year to total £191.3 million, which it said included the benefit of selling excess stock during the year.
Revolution said it has been simplifying the brand and reducing the “excessive volume” of new products being launched in order to focus on its core cosmetics.
The retailer sells makeup, skincare, hair and body products online and through concessions in shops like Boots and Superdrug.
Lauren Brindley, former Walgreens vice president who was appointed Revolution’s chief executive in August, said the past year had been one of “great strategic and financial progress following two challenging years”.
The company was thrown into crisis in 2022 when its auditors refused to sign off on its accounts for the previous year.
It led to an investigation into the business and its shares being suspended from the London Stock Exchange.
Meanwhile, Revolution became embroiled in a battle with Boohoo, which owns more than a quarter of the company’s shares, over demands to replace its leadership team.
The troubles culminated in the resignation of its co-founder, Adam Minto, as well as former chief executive Bob Holt and chairman Derek Zissman.
Ms Brindley’s appointment ushered in a new phase for the group as she set her sights on transforming the brand and drawing a line under the historic issues.
Ms Brindley said: “As the strategy continues to take effect, we expect to see a return to growth in the second half of the year.
“That will put us firmly on the right trajectory to achieving our ambition of being a top five player in the mass beauty market.”