Good morning, and welcome to everybody. Thank you very much for joining us this morning.

We are delighted to be able to update everybody on the great progress that we've made since Adam and I returned to the business in September, just 10 months ago. When we rejoined, let's be honest, the company was losing money, it was losing revenue, and it had lost its way.

We sat around, set up a turnaround procedure and process, and we set ourselves one goal in the first month, and that was to be profitable in the second half of the year. I'm also delighted to confirm that we managed to achieve that.

As you can see from this example of what we've achieved in the second half, the company returned a £4.3 million EBITDA profit in H2 compared with a £12 million loss in the 6 months prior to our return to the business. Whilst I worked on restructuring the business, Adam focused on what he does best, which is product, innovating great products at affordable prices and being fast to market.

Restructuring and build, want to assure you that we have a great, young, ambitious, and motivated team that have already achieved great results. They've now been rewarded with a share scheme that is incentivizing them to increase the share price, they are fully aligned with all shareholders.

We've driven our success, as you can see, by TikTok strategy. When we came back to the business, whilst the company was on TikTok itself, it didn't have a TikTok shop, and our great digital team managed to get this opened by October, and that is now helping us to drive sales.

As you probably know, TikTok has a dual benefit to the company: firstly, obviously, offers a route to market for products, but also, just as importantly, it gives us great exposure to the brand, to the consumer. We're now starting to see a halo effect in retailers as we promote products on TikTok shop.

We are obviously continuing to drive cost savings. To give you some indication of where that's been, when the last financial year started last March, 6 months before Adam and I returned, there were 212 people in the main business; by the start of this year, that's down to 128.

Believe it or not, I think the company is running better and more efficiently since that reduction. There were too many people in the business, too many people making decisions.

Decision by committee doesn't work in a fast business of this size, and we are now much more organized, much more clinical, and we've got a strategic plan in place. As you may have seen recently, we've leveraged our relationship with Debenhams.

We have a strategic license now signed and in place with them. This is a really exciting opportunity for both sides and gives great synergy between the two businesses.

Debenhams, as you may know, has 15 million active customers on its sites and obviously sells affordable clothing and apparel to the type of customer that will be interested in buying makeup and gifting and fragrance. We're really excited about developing some products for them.

The first will be launching under the PLT brand later this financial year, and that will be followed by BoohooMAN and Karen Millen shortly afterwards. We're really excited about this opportunity, and it gives both companies the opportunity of growing their brands and consumer base further.

Our targets for this year are to grow, grow profitably. We have a clear strategic plan in place to achieve that.

There are three pillars to that growth plan: the first being is to increase productivity in our existing doors. Revolution is already in around 15,000 doors globally.

What we need to do is improve productivity in each of those. We've been able to do that successfully so far in a number of different store groups, and our plan is to continue to do that over the proceeding 12 months.

The second area of growth that we're targeting is to open some new doors carefully and in a profitable manner. We're delighted to confirm that we are launching right now in Etos in the Netherlands, where 450 stores going live next month in August, and we're really excited about this opportunity.

It's a great partnership for us in Continental Europe. We've got several more confirmed announcements to be made later this year as a couple more further retailers come on board with Revolution.

The third pillar that we're going to be expanding upon is new categories and brands that will come a little bit later on, but is obviously led by the Debenhams relationship, as well as some exciting new prospects and brands that we're working on in the background. We have a clear strategy to ensure that we grow.

The backbone of Revolution's success has always been products. It's important that we're innovative, fast to market, and affordable.

Whilst Adam and I were away from the business, unfortunately, Revolution lost its way a little bit with products: it became too slow to market with higher price point products. We've worked very hard with retailers to ensure that retailers around the globe now have the right products at the right prices in the right geographical areas.

An example of this is the fact that our average sale price in Superdrug for our bestsellers is 21% lower than it was this time last year. Incredibly, that is also with an increased gross margin.

When I say lower price point products, I don't mean cutting costs and reducing retail prices; I mean putting products that our consumers want into retailers. It's absolutely key to us winning back our core consumer is ensuring that we have the right price point products, and we're making sure that we do that.

Execute efficiently, obviously, it's really important that we do that. There's no point having great products if we don't execute well, but fortunately, we have a great ops team led by Steve, our COO.

Now that we have a clear and realistic forecast and plan, it's enabled them to really do a great job. Over the past month, we've seen our service level to our main retailers grow to over 90%, and this is even more remarkable when you consider that our stock on hand has actually decreased in the past 12 months.

I think it's only possible by ensuring that we have proper, realistic planning and really good stock management. I think the team we've got in place now have really grabbed hold of that as a target and ensured that we achieve it.

Lastly on this slide, we've ensured that we've got the right team in place. Revolution thinking can only be done by a passionate team that we have in place.

We're determined to prove that this brand can be profitable again, and grow again, and become a global leader as it was in the past. We're really excited about the future and where it leads us.

This chart gives you just some understanding of where we believe the growth is going to start. One of the questions that I've been asked many times was, have we hit the bottom of the trough on the reduction of sales?

There's no doubt that over the last couple of years revenue has declined. We've now ensured that we've reached the bottom, and we are starting to grow again.

In the last 12 months, we reported revenue of £102 million. However, it's important to understand that there were certain blocks in that £102 million that won't continue again this year.

There were some outlet sales that previous management carried out at lower margin to raise cash; they also discontinued some brands and discontinued some categories; and there was also some store loss. We've calculated that roughly our baseline sales are around £92 million, £10 million less than the £102 [million?]

reported sales. This is our baseline that we're working from now, and we are 100% confident we're now going to grow from that level.

Just to put that into perspective, if we achieve level sales in this current year, we estimate that will be effectively double-digit growth on an underlying basis. Obviously, it was great to have a second half that we achieved really good profitability back into the business, but that was our honeymoon period.

What we need to make sure is we continue that trend, and I'm delighted to also announce we've had a great start to this current financial year. First quarter, we made a loss of £4.2 million.

In this latest quarter, the Q1 of the current financial year we've just started, we're now back into profitability, we've got a nearly £5 million turnaround in the first quarter alone. That's with sales roughly flat year on year, which, as I've explained, it actually is in real terms an increase, a double-digit increase and growth on our base sales.

E-com has also had a great resurgence, and that's leading the way. In the Q1 of this financial year, our total e-com business is increased 26%, and that's been driven by TikTok shop.

I think that it's really important as an indicator of brand health and points to a resurgence in Revolution brand. There's no doubt that if we launch products now that the consumer is interested in, they will start to buy them again.

If we launch products that they're not interested in and e-commerce business doesn't increase, that only gives an indication to where you might be in the future in the shops. I think that whilst this is a relatively small part of the overall level of our business, it's a fantastic indicator to the fact that we are starting to get back the Revolution core consumer, and that has a great indicator for future sales within our bricks-and-mortar retail outlets.

There are some of the products that we've had great success with in the last year. These are all bullet points from data from Superdrug.

As you can see, we've been number one eyeshadow palette with our Velvet Rose during the past 12 months. We've also been number one beauty products with our fixing sprays.

We have a clear plan now to bring out new and more innovative products that Adam has been working on, just a few examples here. They're not all low price points, they are a variety of price points, but we're just ensuring that our average price point is slightly lower to ensure that we capture and retain our true, loyal Revolution consumer.

I'll hand over to Neil now, and he'll run through the financial review.

Thank you, Tom. Good morning, everyone.

I'm Neil Catto, Chief Financial Officer at Revolution. I'm going to take you through the numbers behind the turnaround that Tom's been talking about.

I'll take you through the income statement, the balance sheet, and the cash flow for the year to 28th of February '26. I'll also touch on what that tells us about the shape of the business as we move into FY '27.

As you can see on this summary slide, the headline for FY '26 was that it really was a story of two very different halves. In the first half, before Tom and Adam returned to the business and before we completed the refinancing, we recorded an adjusted EBITDA loss of £12.5 million.

In the second half, we delivered an adjusted EBITDA of £4.3 million positive, and so that's a swing of nearly £17 million half-on-half, and that £4.3 million was ahead of our previous guidance. Big recovery there, and that recovery was underpinned by gross margin improvements and cost savings.

Gross margin increased from 32.2% in the first half to 41.4% in the second half of the year, an improvement of 9.2 percentage points. That was as we moved away from the clearance and markdown activity that had been used to generate cash ahead of the refinancing and back towards realistic forecasting and tighter stock management.

Alongside that, we took out more than £9 million of cost on an annualized basis, and that was across all our cost lines: operating costs, marketing costs, and our administrative overheads. We completed the £16.5 million equity raise that yielded proceeds of £15.5 million, that was completed in September 2025.

That allowed us to repay £4 million of bank debt and refinance our remaining facility on improved terms, taking the net debt down from £30.2 million at the end of the first half of the year to £24.7 million at the year end and lifting our cash balances to £5.9 million. Turning to the income statement, group revenue for the year was £102.1 million, down 28% on last year.

That decline was a function of the decisions taken by the previous strategy employed before the return of Adam and Tom in September, and that was about reducing SKU count and taking a narrower strategic focus. It was about that rather than any kind of deterioration in the underlying brand, and actually since Tom and Adam returned, we saw the trend turning in the second half of the year, and revenue was 49.4% in the £49.4 million in the first half, that rose to £52.7 million in the second half.

We've seen that improving trend continue so far in the new financial year, with sales broadly flat year-on-year. Gross margin for the full year was 36.9%, down from 38.2% last year, but again, there was a big improvement in the second half of the year.

In the first half, the gross margin of 32.2% reflected clearance activity generating cash ahead of the refinancing. In the second half of the year, the gross margin recovered to 41.4%, and that was really as we returned to disciplined forecasting and stock management.

Adjusted EBITDA for the year was a loss of £8.2 million. Again, that was driven by the performance in the first half of the year, which was a £12.5 million loss, and that was offset to a large degree in the second half with that return to profitability and a positive £4.3 million EBITDA.

Below the EBITDA line, there's one thing worth flagging as we saw £1.8 million of non-recurring legal and professional costs relating to the formal sale process, the refinancing, but also the FCA investigation. I'm pleased to say that the FCA notified us after the year end that taking no further action, and so we don't expect those costs to recur this year, those exceptional items will be significantly reduced in FY '27.

Moving on to the balance sheet, the big moment on the balance sheet was the September refinancing and equity raise. We extended our revolving credit facility to July 2028, and we reduced it to £28 million from £32 million and agreed a covenant-lite terms until May 2026.

Combined with the equity raise, net debt fell to £24.7 million from £30.2 million at the end of the first half of the year. I think the turnaround story is really quite clearly told on this chart here, which is the cash flow bridge for the year.

We started the year with £5.7 million of cash. You can see there the first half EBITDA loss of £12.5 million was substantially offset by the £4.3 million of EBITDA we generated in the second half of the year.

We paid out around £3.4 million relating to those exceptional items for restructuring costs and refinancing costs, legal and professional fees that I talked about earlier. Working capital was positive, and with tighter inventory management and lower receivables, overall working capital movements released around £8.5 million of cash during the year, broadly offsetting the cash cost of the EBITDA loss and exceptional items, so that net cash used in operations for the full year was £3.7 million.

Below that, we invested £6.2 million in capital expenditure on retail fixtures and equipment for our store presences globally, and we paid £2.6 million of interest. The September equity raise brought in £15.5 million of net proceeds, of which we used £4 million to pay down the RCF as part of the refinancing, with the balance strengthening our cash position.

After a relatively small positive contribution from foreign exchange, we ended the year with £5.9 million of cash. That's the financial picture for FY '26.

I'd like to hand back to Tom to summarize, and then we'd be happy to take your questions.

In summary, I hope you can see that we've made some fantastic progress on profitability. It was the key driver and true key goal when we came back into the business.

Since Adam and I returned in September, we've been profitable each and every month since, and we will continue to do so. What's also encouraging is that our gross margin is increasing as well, and we expect it to be a couple of percentage points higher than it was in the second half even as we continue to move forward through this year.

We're also returning to growth. There's no doubt now we are growing this business, we will continue to grow it.

We have expectations to achieve double-digit growth through the next 3 or 4 years each and every year. We've got a clear plan, a clear strategy, with what I outlined earlier.

We've got retailers wanting to reengage with us, we've got great pipeline of new NPD coming through, and we really believe now that we're on a real great path to growth again. This business was once £190 million turnover, and we're determined to get it back to that sort of level.

We've got great new products coming out, as I've mentioned. The level of EBITDA that we're now managing to achieve means that we're marginally cash generative.

We're targeting to be even more cash generative into next year. We've certainly completed our turnaround.

We're now in a transition period, and then we'll be back into a full growth and full throttle moving ahead period. With our low level of capex, our low level of exceptionals, and the interest that we're now paying, we are starting now to be cash generative.

Our stock management has been much, much better. It's been a criticism of this business in the past, but I think we've demonstrated by the great service level results we've achieved lately and the fact that we've managed to decrease our overall stock holding in the last 12 months proves that we've got stock management back under control.

To finish, we've made really good progress. We're going to continue to grow this business, we can continue to run it profitably, we're going to continue to execute it well.

Watch this space. This business is going to go a long way.

We've also got a really determined and motivated staff that are absolutely determined to prove that this brand can grow again, and the resurgence of Revolution is here. That concludes our presentation, and we'd be happy to take questions.

Simon, are you there? Simon?

Hi, guys.

Excellent. Let me start that again.

[unclear] for the second half of the year [unclear] free cash flow?

Sorry, it's a really bad line. I can't hear the question.

Let me start that again. Are there any costs associated with the Debenhams license for the second half of the year, and will those impact your free cash flow for the second half of the year?

The simple answer is no. It's a capex-light model with Debenhams.

Yes, we're producing some stock, but that's not a material change in our cash position, our investment in NPD in any case. The main sales in the first few months will be online via the Debenhams platform and also via our current distributors and retailers.

We're already in discussion with some national retailers to take that stock, and in the future, that it's possible that could incur some capex, but certainly in this current financial year, we don't expect any capex or real cash investment to get that license underway.

Thank you. What level of borrowing do you think is appropriate for Revolution Beauty in the short term and in the medium term?

The current level of borrowing we've got is not affecting us positively or negatively. It's not precluding us from continuing to grow this business.

We'll review that over the next 12 months with the board, but we're comfortable with the current level. Obviously, we'd like to reduce it as we start to generate cash, but it's not a priority at this moment in time.

It's not being restrictive in any way.

Thank you. In a highly competitive beauty market, what's Revolution Beauty's sustainable competitive advantage?

Revolution Beauty's always been about the passion of its products. That's the bit that Adam's brought to the business and continues to bring to the business now.

We have a great range of products. They're fast to market, they're affordable, and they're different from some of the big legacy brands that take a long time to bring things to market, so that's always been our point of difference.

I think that it's really important everyone understands that going back in history, Adam and I launched and founded this business in 2014. By 2019, we were the third-fastest-growing company in the UK under the Sunday Times Fast Track awards.

We've proven already that we're capable of growing faster beauty business, that we know how to do that, and we know how to do it in a profitable manner, and we're determined to do that again. We're doing it already; this business is now growing again.

Thanks, Tom. Given the size and strategic importance of the US market, what specifically needs to change for this business to return to growth, and over what timeframe should we expect to see improvement?

Senior management team has already been to the US, I think, 4 or 5 times in this calendar year already. We're very focused on ensuring that we grow not only in Europe and in the UK, but also in the US.

There were some challenges when we came back into the business, but one by one we're addressing those, and we're starting to see some interest from some new retailers in the US. We're extremely confident that we will right the ship out there and grow that business in the US as well again.

When we left this business a few years ago, it was in a bigger state in the US, we'd grown it much more than it is now, and we're confident that we'll grow it back again in the US.

Are there any further efficiency opportunities to come, or have you now done most of the low-hanging fruit?

I think it's fair to say we've probably addressed most of the low-hanging fruit. I think it's also fair to say that myself and Neil and the finance team look at every cost line every week or every month and ensure that there can't be some more, but I think we've taken the big ones.

I think it's important now that, as I said earlier, we've completed, if you like, the turnaround of the business. It's now back profitable, now back growing again.

I think we're now in a transition period, and what I mean by that is that for every sort of three steps forward, we're maybe taking half a step back because we're still righting some wrongs of the past, but generally speaking, we're now moving forwards in a positive manner. I think to another 6 or 9 months, we'll be into full throttle moving forward mode and will have cleared any legacy issues.

No, I've no doubt that we're going to move this business forward in a fantastic way moving forwards. I think in terms of the cost savings, I don't think people should look for huge cost savings moving forward, because I think that it's important now that we recognize that the value of this business is going to be moved in the dial in the right direction by growing.

I think to do that, we need people in the business, and we need the right people in the business, and we need to invest in stock and people and marketing. We're not looking to cut costs as such anymore.

We're looking to stabilize our cost savings we've made and to focus on growth moving forward. That's our key messages: we're going to focus on growth.

Thank you. What do you think are the key drivers for growth over the next, say, 12 months, and perhaps further out the next 24 months?

I think I've covered that in the presentation, but to recap, I think we've got a very clear plan. It's very strategic, very clear to our full management team what they're trying to achieve.

The first of those three pillars being increased productivity in our existing doors. To give you an example, we're in a store called dm in Germany.

We were very, very close to being delisted because sales weren't doing particularly well. We went over to Germany, Adam spent some time over there and realized that they've got some of our more expensive, very good products on the stands, and they were basically the wrong products at the wrong price in the wrong retailer.

We did an update earlier this financial year and put onto the stand the products that we believed should have been on the stand in the first place and were at the price points that the German consumer wanted them to be, and we've nearly seen double sail rates in the last 3 months in dm in Germany. That's what I mean by increasing productivity in existing stores, because that's the capex-light model.

The company spent an awful lot of money over the last few years investing in capex. We've got 15,000 or more doors across the globe that we're already in and we've already spent capex, and we need to make sure that we leverage that capex.

We can do that by being more productive, and as I say, that means making sure you've got the right products in the right stores. The second area, as I mentioned, was to bring in some new doors, and as I said, we're launching in Etos as we speak.

We've got two more retailers lined up to launch later this financial year, and we'll announce them as they actually happen, because timings always a little bit variable for movement in that sort of environment, but they are definitely confirmed. Then the third area we're going to start to grow in is in categories and brands.

As I said, Debenhams leads that in terms of brands, but we've also got some exciting new opportunities we're working on with a couple of more new retailers for other branding opportunities. We've got a very clear plan.

The management team knows what it's doing. It's been clearly laid out to them what we need to do to grow this business again, and we're well on the way to achieving it.

Thank you. Last question.

Are you disappointed that sales are flat Q1 on Q1 last year?

Not at all. When you consider that last year revenues were down 30s and 40%, actually, level sales on Q1 of last year is actually a great result.

The reason we put the chart in to explain that even the level of sales last year in Q1 were actually disproportionately artificially increased because there were some sort of, if you like, false sales by management raising cash and selling product at low margin, that the real sales were actually less. The base sales was less than that.

We're actually demonstrating in real terms on an underlying basis double-digit growth already because we're having to wash through, if you like, false sales that were in the last first half. Sorry, Simon, what's more important is that for any business is that it's not about the sales, it's about the profitability.

Last year, on that flat level in Q1, the business lost £4 million. In this Q1, although the overall sales level was flat, we made a profit.

All the time we're making a profit, that enables us to rebuild this business. We can't rebuild this business if we're not making a profit.

The most important thing is making a profit on the levels of turnover we've got so that we've then are able to lay the foundations to grow the business again.

Thank you very much, Tom. Thanks, Neil.

Jake, over to you.

Thank you. The first thing is obviously to say thank you to everybody who's been a supporter of Revolution, particularly over the last 9 months.

I appreciate it's not been easy to survive over the last couple of years, but please be reassured that we are back on track now. Thank you for your support, and thank you for attending today's presentation.

We're always available to answer any questions if anyone's got them, take them offline. Thank you, and we look forward to updating you over the next few months as things progress further.