UK's Revolution Beauty sees improved trading ahead after tough 2026

(Corrects debt proportion in second paragraph, market value in fifth bullet)

July 21 (Reuters) - Cosmetics group Revolution Beauty said on Tuesday that trading improved in its fiscal second quarter after a turnaround plan helped it beat its own expectations in the first three months of fiscal 2027.

Its shares, however, fell 8.2% in volatile trading as investors weighed the update against a full-year loss and debt equal to nearly half of its market value.

Here are more details:

• The company reported adjusted core loss of £8.2 million ($11.03 million) for the year ended February 28, 2026, compared to adjusted core profit of £4.7 million a year ago, after sales fell 28%.

• Shares of the company fell as much as 13.1% to 5.3 pence by 0924 GMT, having sporadically logged gains as high as 3.6% during the day.

• "The company still carries a relatively high level of debt versus its market cap," Zeus Capital analyst Rachel Birkett, said.

• She added that investors may be focused on cash conversion and the need to see a fall in Revolution Beauty's debt following multiple fundraises.

• The company reported net debt of £24.7 million at February 28, against a market cap of £53.15 million.

• The company has a combined credit risk score of "1", according to LSEG data. CCR is a marker of how likely a company could default on its obligations in the next year, with a higher score indicating a lower possibility.

• Revolution Beauty roped in founders Tom Allsworth and Adam Minto in August last year to revive the struggling brand, scrapping a sale process it previously contemplated.

• The company has been cutting costs, simplifying execution and negotiating price adjustments with retailers.

($1 = £0.7437)

(Reporting by Simone Lobo in Bengaluru; Editing by Harikrishnan Nair)