Shares in Revolution Beauty (LON:REVB) jumped on news the Financial Conduct Authority (FCA) has ended its investigation into the troubled cosmetics firm, with ‘no further action’ to be taken.
There was no financial or strategic update from the AIM-listed company. However, the cessation of the FCA probe removes an overhang that has long-dogged the business.
Revolution Beauty, which sells colour cosmetics and skincare products through retailers including Walmart (NASDAQ:WMT), listed in July 2021 at 160p. Following a turbulent period of accounting probes, boardroom upheaval and persistent losses, it currently trades as a penny stock.
The FCA concluded an investigation into the mass beauty brand’s co-founders, Adam Minto and Tom Allsworth, in November 2024. The FCA originally opened its inquiry into potential breaches of Market Abuse Regulation (MAR) in 2023.
In 2025, a formal sale process was kickstarted, then exited in August. This was swiftly followed by a £16.5 million equity raise, at which point the founders returned to the business.
Brighter future ahead?
Revolution Beauty chairman Iain McDonald commented: ‘The company has cooperated fully with the FCA for the last three years and has taken on board any comments with a constructive spirit implementing a wider range of governance and best practice.’
He added: ‘It is fitting to receive this news from the FCA at a time when Tom and Adam are back involved in the business and have reinvigorated it with a clear strategy. The early signs that this strategy is working are very encouraging, and the future is much brighter for the Revolution brand.’
Broker Cavendish’s forecasts and price target for Revolution Beauty remain under review pending greater clarity on the company’s updated strategy and guidance. However, the new management team has re-set the strategy and returned the business to its value-led roots.
It’s been a while since Revolution Beauty last reported any figures. But results for the half to August 2025 revealed a 31.8% slump in sales to £49.4 million and a widening of pre-tax losses from £10.9 million to £18.4 million.
This reflected US tariffs and space and brand changes in certain retailers, which resulted in mark-down costs. But the company did return to positive EBITDA in September and October 2025 as the benefits of cost-cutting began to shine through.
Revolution Beauty has been a dire investment since making its AIM debut in 2021, but there are glimmers of hope. The balance sheet has been strengthened. And the returning founders know the mass beauty market inside out.
Unfortunately, tariffs have disrupted retail customer buying patterns. A slowdown in the beauty retail market is a further headwind. With Revolution Beauty still indebted, it too early in the turnaround to turn bullish on the stock. Avoid for now.
Read the press release here: https://revolutionbeautyplc.com/
