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Revolution Beauty has revealed it has cut more than 80 jobs since March, as it blamed its previous management for mounting losses.
The beauty retail business is undergoing a major transformation program led by its founders, who returned to the group earlier this year.
Revolution Beauty said its performance in the half year to August 31 under previous management was “worse than expected”.
It warned that sales and adjusted earnings for the full year “will not match” the guidance given in the previous update in August.
The brand told shareholders that revenue fell 31.8% to £49.4 million in the latest half.
It said this was driven by “disruption arising from prior-year strategic and operational issues”.
It said even efforts by the previous owners to ease cost pressures were not enough to stop the group’s losses from widening.
The company told shareholders it has reduced its headcount by 82 since the beginning of March, to 123 currently, as part of changes to its operations.
Revolution reported that pre-tax losses widened to £18.4 million in the half year, compared with £10.9 million a year earlier.
Founders Tom Allsworth and Adam Minto have led the current transition efforts in chief executive and consulting roles respectively after returning to the business.
Mr Allsworth said: “Although I was not part of the business during the six-month reporting period, it is clear that the group faced a number of significant challenges.
“I recognize the impact this has had on our people, our partners and our performance.
“However, with the actions taken since the period ended, we have laid the foundation for a more disciplined, focused and resilient business.
“We are now entering an exciting time for Revolution Beauty as we set out to make a comeback.”
shares Revolution Beauty rose 2% on Thursday morning.