The founder of Revolution Beauty (LSE: REVB) is negotiating a £3m repayment to settle claims he breached duties.
Adam Minto, who resigned as CEO last year, is in advanced talks to hand over the sum, Sky News reported. Sources say a deal could be unveiled within weeks.
Minto’s co-founder Tom Allsworth is also revising terms for money owed from selling firm Medichem. Revolution hopes resolving both will draw a line under disputes since its near-£500m listing.
Crises have battered its value to £81m. But shares rose 51% in November as it hiked guidance and posted a £400,000 half-year profit, from a £13.7m loss. Revenue grew 20%.
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Minto and Allsworth’s potential settlements will hearten investors after years of turmoil. Revolution, which sells mass-market beauty products, saw shareholders attempt to oust CFO Elizabeth Lake this summer.
Chief executive Lauren Brindley said the first-half results marked a “significant milestone” in improving controls and leadership. She unveils a three-year plan in 2023.
Year to date Revolution Beauty shares are up 27%.
