Issue 41: Creightons, PLC Update

A turning point for the UK-based beauty products company; Subscriber meetup 9/20 at 11AM Eastern

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Disclosure: Long CRL (LSE)

Meetup: Join me on Friday at 11AM Eastern to discuss this issue and more (link at the end).

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UK-based Creightons, PLC reported results for their fiscal year ended March 31, 2024.

The Quick Summary

• The Board chose Pippa Clark (head of sales/marketing) to succeed Bernard Johnson as Managing Director (CEO). Longtime Chairman, William McIlroy stepped down from his role and significantly reduced his holdings. Other positions turned over, too.

• Management shrunk the business to adapt to lower sales volumes, including bringing certain functions in-house and eliminating a shift.

• The reduced topline reversed economies of scale leading to lower margins, although certain actions have created a leaner organization

• The business remains profitable on a core basis but lost money after a £4.5MM charge against the value of its Emma Hardie subsidiary (acquired in July 2021).

• H2 results were better than H1 indicating a possible positive reversal of fortunes.

• Shares trade at 30p or about a £23MM market cap

Operating Results

Digging deeper reveals some important figures and considerations, including changes to the product lineup.