Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • CRL FY25 revenue rose 1.6% to GBP 54.1 million, driven by growth in private label sales.
  • Creightons reported EBITDA of GBP 5.1 million, up 57.9% YoY on improved margins and lower distribution costs.
  • Creightons transitioned to AIM, seeking lower compliance costs and operational flexibility.

Creightons plc (AIM:CRL), a UK-based manufacturer and brand owner in the beauty and well-being sector, announced its audited financial results for the year ended 31 March 2025 (FY25). The Group recorded a modest revenue increase but significantly improved operating margins and profitability, underpinned by a shift in sales mix and cost rationalisation initiatives. Revenue for FY25 rose by 1.6% to GBP 54.1 million, compared with GBP 53.2 million in FY24. The topline growth was largely attributable to an expansion in private label sales, which increased to GBP 29.2 million from GBP 23.8 million in the previous year. Meanwhile, sales of branded products declined to GBP 18.2 million, and contract manufacturing revenue dropped to GBP 6.7 million from GBP 8.4 million, reflecting a shift in the company’s focus toward private label offerings.

Gross profit grew by 5.8% to GBP 24.2 million, with the gross margin improving by 180 basis points to 44.7%, up from 42.9% in FY24. Management attributed this improvement to cost mitigation efforts, supplier pricing reviews, and manufacturing efficiencies. Distribution costs were reduced by 20.8% to GBP 2.8 million as warehousing and logistics functions were consolidated at the company’s Peterborough facility. BITDA increased 57.9% to GBP 5.1 million compared to GBP 3.2 million a year earlier. Operating profit before exceptional items rose significantly by 129.6% to GBP 3.5 million. The Group recorded a profit after tax of GBP 2.5 million, reversing a GBP 3.5 million loss in FY24, which included a non-cash impairment charge of GBP 4.4 million.

Adjusted diluted earnings per share, excluding exceptional items, rose to 3.29 pence. Net cash on hand at year-end was GBP 3.0 million, up from GBP 2.2 million. A final dividend of 0.50 pence per share has been proposed, an increase from 0.45 pence in the previous year. Operationally, Creightons implemented several initiatives throughout FY25 to stabilise its performance. Administrative expenses remained flat at GBP 17.9 million, while increased factory efficiency allowed operations to continue on a single-shift basis across sites. Inventory levels rose to GBP 8.9 million, in line with higher sales volumes.

The company made targeted capital investments to support infrastructure upgrades and scalable production, contributing to improved operational throughput. These actions were part of a broader strategy aimed at controlling costs and aligning operations more closely with customer demand patterns. A key strategic milestone during the year was Creightons' move from the Main Market to AIM, which took effect on 31 March 2025. According to the company, the transition was undertaken to achieve lower compliance costs and benefit from more flexible regulatory requirements. Management indicated that this change would support faster decision-making processes and allow greater focus on growth opportunities. Looking ahead, the company plans to continue efforts to streamline its operations and strengthen its sales mix in line with evolving market demands. However, no forward guidance has been provided.

CRL trading at 7.21% lower at GBX 39.90 per share as on 16 July 2025.