Brand Architekts, the beauty specialist behind British brands such as Skinny Tan and Super Facialist, has seen a dip in sales as it shifts its focus to fewer, larger brands. The firm reported an underlying loss of £0.4m, compared to a loss of £1.2m for 2023, while its gross profit margin rose by 1.5 per cent to 41.2 per cent.
Sales for the year ending 30 June totalled £17m, a decrease of 15 per cent from £20.1m in 2023. The company attributed the decline in sales to the discontinuation of unprofitable brands, the lingering effects of the cost-of-living crisis, and an unusually wet spring, as reported by .
However, its flagship products performed well, with sales of skincare brand The Facialist increasing by 17 per cent, and menopause product The Solution rising by 43 per cent. Similarly, Skinny Tan's Body Glow, which launched in Boots, Superdrug, Asda, and Tesco during the year, 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 end of the year was £7m, down from £8.2m in June 2023. This reduction was attributed to the acquisition of MR Haircare and legal costs associated with the purchase of men's grooming brand Fish.
Brand Architekts settled a 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, remarked: "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."
