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Why do we like it: “The world of companies run by founders is one of our favorite hunting here with hidden winners. This is due to the fact that employment management-a significant participation in business-often has cautious, long-term management principles. The partners of Bazini and Eoin MacLeod-who connected the possession of about 4% Warpaint London (LSE: W7L), evenly divided – began their business career, selling cosmetics at market stalls. In 1992, they founded Warpaint, buying a surplus of cosmetics and fragrances from companies such as Revlon and selling them to retail and wholesalers from Rabatów. Although it was a nice business, the surplus of stocks he bought never included the most sought after products, and to fill the gaps and offer a full range of cosmetics of the developing customer base, the founders decided to create their own brand, W7.

“The key brand W7-which focuses on the age range 16-34-it has suffered by 25% in the last six months and is responsible for about two-thirds of total sales. His technical brand – which focuses on the dormitory market – increased by 34% in the same period and accounts for about 32% of the sale. The company believes that the key to development is to increase its presence on large retail sellers around the world, growing sales among existing customers, while attracting new customers and increasing presence on the Internet. The company is both profitable and generative cash, with exceptional latest and long -term achievements, and we are sure that the owners/managers will manage the company (and their own investments) in a way maximizing long -term potential avoiding catastrophic risk. “

Why do we like it Now: The last commercial update of Warpaaint was disappointing, and sales of 102 million pounds and profits of 24 million GBP remain slightly delayed at 105 million GBP and 24 million GBP, respectively, but the decrease in stock price seems potentially exaggerated. The market was afraid that its growth rates were not balanced – and if the trend of the omitted forecast lasts, it would be a worry – but the company can boast of exceptional achievements of profit growth and can offer good value if its results recover. Warpaint is to raise prices in 2025 and will benefit from the growing scale of orders placed together with suppliers as the company develops – potentially helping the gross margin to expand for the fifth year in a row. His strategy is “Growing profitable sales of branded products around the world, while increasing general margins” In our opinion, it remains attractive.