Brand Architekts, the beauty specialist behind British brands including Skinny Tan and Super Facialist, has reported a fall in sales as it pivots to fewer, bigger brands.
The company reported an underlying loss of £0.4m compared to a loss of £1.2m for 2023, while its gross profit margin increased 1.5 per cent to 41.2 per cent.
Sales for the year ended 30 June were £17m, down 15 per cent from £20.1m in 2023.
Brand Architekts said the drop in sales was due to cutting unprofitable brands, the tail end of the cost-of-living crisis, and the unseasonably wet spring.
However, its flagship products performed well, with sales of skincare brand The Facialist up 17 per cent, and menopause product The Solution up 43 per cent.
Similarly, Skinny Tan’s Body Glow launched into Boots, Superdrug, Asda, and Tesco during the year and was one of the fastest-growing products in the tanning market as of July, according to Circana.
The company’s net cash position at the year-end was £7m, down from £8.2m in June 2023. It blamed the reduction on the acquisition of MR Haircare and legal costs relating to the acquisition of men’s grooming brand Fish.
Brand Architekts settled the claim over its 2018 acquisition of the grooming brand, which alleged a breach of shareholders’ agreement, for £200,000, plus £225,000 in legal costs.
Quentin Higham, Chief Executive, commented: “The group made good progress in rationalising its portfolio, whilst improving margins and significantly reducing its underlying operating losses.
“We expect to grow our brands through increased consumer awareness, investment in customer acquisition campaigns; product productivity; an extensive new products development pipeline planned for the second half of the year; the repositioning of Skinny Tan as Skin & Tan and international expansion.
“We will continue to focus on brand contribution and a further release of working capital tied up in harvest brands. We remain confident that the foundations we are building will enable us to return to profitability and achieve our medium and long-term goals.”