05.30.23
Revolution Beauty has announced that its co-founder Tom Allsworth will be stepping down from his position as non-executive chairman—and has published its delayed FY22 results for the financial year ended February 28, 2022.
Allsworth’s resignation comes a year after Revolution Beauty’s other co-founder, Adam Minto, stepped down amid an independent accounting probe.
The investigation by Revolution Beauty's auditor BDO uncovered a string of accounting and management failures, after the brand failed to publish its results in February 2022.
The report found that co-founders Adam Minto and Tom Allsworth had made personal loans of around £1 million to distributors and a senior employee.
None of these arrangements were disclosed to the company's board at an appropriate time.
The company's financial statement disclosed a revelation of overstatements in both revenues and profits. The figures were found to be inflated by £9.6 million and £23 million, respectively.
Notably, Revolution Beauty reported a substantial increase in pre-tax losses, which surged from £17.8 million to £44.9 million during the period under review. Additionally, Revolution Beauty faced an operating loss amounting to £38.9 million, largely attributed to its acquisition of Medichem.
Despite the turmoil, there was a glimmer of positivity as sales recorded a 35% surge, reaching £184.6 million. However, this figure fell short of the group's initial forecast of £194 million.
Compounding Revolution Beauty's woes, the company's shares remain in suspension.
Tom Allsworth Steps Down
Allsworth has been replaced by Derek Zissman, who will serve as non-executive chairman.Allsworth’s resignation comes a year after Revolution Beauty’s other co-founder, Adam Minto, stepped down amid an independent accounting probe.
The investigation by Revolution Beauty's auditor BDO uncovered a string of accounting and management failures, after the brand failed to publish its results in February 2022.
The report found that co-founders Adam Minto and Tom Allsworth had made personal loans of around £1 million to distributors and a senior employee.
None of these arrangements were disclosed to the company's board at an appropriate time.
Delayed Full Year Results
The beleaguered beauty brand also finally unveiled its full-year 2022 results, following a prolonged delay since March 2023.The company's financial statement disclosed a revelation of overstatements in both revenues and profits. The figures were found to be inflated by £9.6 million and £23 million, respectively.
Notably, Revolution Beauty reported a substantial increase in pre-tax losses, which surged from £17.8 million to £44.9 million during the period under review. Additionally, Revolution Beauty faced an operating loss amounting to £38.9 million, largely attributed to its acquisition of Medichem.
Despite the turmoil, there was a glimmer of positivity as sales recorded a 35% surge, reaching £184.6 million. However, this figure fell short of the group's initial forecast of £194 million.
Compounding Revolution Beauty's woes, the company's shares remain in suspension.