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Brand Architekts positive on outlook despite market difficulties
20th Nov 2019 16:02
(Sharecast News) - Personal care and beauty products company Brand Architekts Group told shareholders on Wednesday that, since the "transformational" disposal of its manufacturing business on 23 August, it had transitioned its focus to solely be on developing its portfolio of beauty brands.
The AIM-traded firm, which was holding its annual general meeting, said that while it was still in its early stages as a "streamlined business operation", it had made "significant strides" operationally, putting in place new systems, new processes and new management, including the appointment of interim chief executive officer Chris How on 24 October.
Executive chairman Brendan Hynes said UK market conditions remained difficult, and international sales had been negatively affected by increased tariffs on China-sourced products into the United States, which would cause "some drag" on first half comparators.
"We expect both the UK and international sales will return to growth in the second half of the year, underpinned by the complete management focus on our brand business following the disposal of contract manufacturing, new product developments and improved UK distribution for our key brands," he said.
"Whilst we anticipate that ongoing economic and consumer uncertainty will continue into the new calendar year, the group's specialist focus, excellent operations team and strong retail customer relationships mean that we are well placed to navigate and grow in this market.
"As a result, the board expects to deliver positive progress for the full year."
At 1547 GMT, shares in Brand Architekts were down 10.93% at 162.55p.
The AIM-traded firm, which was holding its annual general meeting, said that while it was still in its early stages as a "streamlined business operation", it had made "significant strides" operationally, putting in place new systems, new processes and new management, including the appointment of interim chief executive officer Chris How on 24 October.
Executive chairman Brendan Hynes said UK market conditions remained difficult, and international sales had been negatively affected by increased tariffs on China-sourced products into the United States, which would cause "some drag" on first half comparators.
"We expect both the UK and international sales will return to growth in the second half of the year, underpinned by the complete management focus on our brand business following the disposal of contract manufacturing, new product developments and improved UK distribution for our key brands," he said.
"Whilst we anticipate that ongoing economic and consumer uncertainty will continue into the new calendar year, the group's specialist focus, excellent operations team and strong retail customer relationships mean that we are well placed to navigate and grow in this market.
"As a result, the board expects to deliver positive progress for the full year."
At 1547 GMT, shares in Brand Architekts were down 10.93% at 162.55p.