Revolution founders Tom Allsworth and Adam Minto are returning to the business and setting out a “clear path back to growth” after the company today announced its results for the year ended 28 February 2025.
The company has also announced that its banking facilities have been conditionally extended to 31 July 2028 and today revealed a proposed equity fundraise to raise gross proceeds of around £15 million.
Allsworth will take on the role of CEO in the coming days, at which point interim CEO Colin Henry will step down and leave the business. Minto will also return to the business but in a consultancy role. The duo, alongside the company’s existing management, will lead the implementation of what they call a “rebalanced” plan to restore growth.
This will include a return to the company’s original formula for success – fast, trend-driven innovation combined with a product-led strategy.
However, cost-cutting will also be a key element of the need to provide financial stability in the near term with plans to cut jobs across the group’s geographies and business functions to achieve an additional £7.5m of annual staff cost savings by FY27.
In the 2025 financial year a rationalisation of product and brand portfolio saw sales down 25.5% to £142.6m for the period. Gross margin also fell, down 8 percentage points to 38.2% and following the planned clearance of non-core inventory.
Current trading
Updating on current trading, Revolution Beauty said that year-on-year declines in net sales continued in the first quarter of the financial year ending 28 February 2026. This was a result of the previously discontinued products as well as clearance activity of stock on high levels of sales cover. This will impact margins throughout the rest of the first half of the year which have also been impacted by US tariff cost increases.
Net sales in the first quarter of FY26 have declined 29% on FY25 but the company says that year-on-year decline rates improved in June and July 2025. It expects second quarter revenues to be around 25% lower than the same period in 2025.
The company has relaunched its Relove value brand with new retail distribution partners and has also established a profitable discount outlet channel, it said.
Sales on Amazon in both Europe and the US have continued to show strong growth. Significant US retail customers have returned to year-on-year growth and sales in some international markets, such as Turkey, have exceeded expectations, the company said.
Based on the performance of the business in the first four months of FY26, Revolution Beauty expects to achieve revenues in the range of £110m-£120m and to recoup EBITDA losses incurred in the first half of the year, so that adjusted EBITDA of low single digit millions will be achieved after the staff cost saving measures have been implemented.
A clear path after losing its way
Iain McDonald, chairman of Revolution Beauty, said: “Revolution Beauty is a great brand, but the business has lost its way. We are confident that with a return to the founder-led management team who originally scaled the brand, there is a clear path back to growth and long-term value creation.”
“This will be achieved with a re-balanced strategy which will return Revolution Beauty to its original formula for success – fast, trend-driven innovation combined with a product-led strategy. This will be underpinned by a leaner organisational structure, streamlined marketing spend and a strengthened balance sheet. The funding from the equity raised will be used to reduce debt, provide working capital and ensure a stable base for the business to return to growth.”
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