Revolution Beauty (LSE: REVB) shares climbed 10% on Friday after the cosmetics group scrapped its formal sales process and turned back to its founders to lead a turnaround.
The firm said no bid emerged that the board could back, ending months of speculation after Sports Direct owner Frasers ruled itself out in June. Instead, Revolution is cutting costs, raising £15 million through a placing at 3p a share, and bringing co-founders Tom Allsworth and Adam Minto back into the fold.
Allsworth will take over as chief executive in the coming days, replacing interim CEO Colin Henry, while Minto will return in a consulting role. Alongside them, major shareholder boohoo – now trading as Debenhams – has committed fresh cash, with the trio of cornerstone investors now controlling nearly 58% of the company.
The funding will be used to cut debt, shore up working capital and reset the business after a bruising year.
Revenue fell 25% to £142.6 million in the year to February, while the company swung to a £16.8 million loss from an £11.4 million profit. Gross margins tumbled to 38.2% from 46.2% as the firm cleared excess inventory, with first-quarter sales in the new year down 29% year-on-year.
Chair Iain McDonald admitted the business had “lost its way” but said a return to founder-led management and “fast, trend-driven innovation” would put the brand back on track.
The company now expects revenue of £110 million to £120 million this year, with cost cuts targeting an annual EBITDA run-rate of £8–10 million by the end of financial 2026.
Revolution Beauty shares remain down 78% in 2025.