New Revolution Beauty boss shocked by its ‘ethical values’

The new chairman of the scandal-ridden Revolution Beauty admitted that the “standard of ethical values ​​and good conduct” had fallen short under the previous leadership as it reported mounting losses.

Derek Zissman made the comments just a day after taking over the job from the cosmetic company’s now-deceased co-founder, Tom Allsworth.

It came as it published delayed results with a loss of £44.9m for the year to February 28, 2022. That followed a loss of £17.8m years earlier.

Last year, BDO’s accountant noted ‘serious concerns’ about the annual accounts, as a result of which the company missed its deadline for reporting the figures and its shares were suspended.

A probe identified issues such as £9.6 million in sales that should not have been counted towards the annual turnover figures. Zissman yesterday acknowledged “some findings show that the standard of ethical values ​​and good conduct was not at the level expected of a plc.”

Revenues were about £23m lower than a year ago indicated in an update to investors. Turnover was reduced from £194 million to £184.6 million.

The report warned of “material uncertainty” about the ability to proceed and a qualification of accountants, meaning they are concerned about aspects of the accounts.

Zissman said, “While these results are significantly below the previous management team’s forecast, they reflect a robust company with a strong brand, loyal following and significant potential. We now expect Revolution Beauty to return to normalized trading.”

Allsworth and Adam Minto founded the company a decade ago and it grew into a favorite of the likes of Abby Roberts, a British makeup influencer. Minto stepped down as CEO last fall, while Allsworth stepped aside to be replaced by Zissman on Thursday.