Revolution Beauty has announced that its co-founder Tom Allsworth will be stepping down from his position as non-executive chairman—and has published its delayed FY22 results for the financial year ended February 28, 2022.

Tom Allsworth Steps Down

Allsworth has been replaced by Derek Zissman, who will serve as non-executive chairman.
 
Allsworth’s resignation comes a year after Revolution Beauty’s other co-founder, Adam Minto, stepped down amid an independent accounting probe.
 
The investigation by Revolution Beauty’s auditor BDO uncovered a string of accounting and management failures, after the brand failed to publish its results in February 2022.
 
The report found that co-founders Adam Minto and Tom Allsworth had made personal loans of around £1 million to distributors and a senior employee.
 
None of these arrangements were disclosed to the company’s board at an appropriate time.

Delayed Full Year Results

The beleaguered beauty brand also finally unveiled its full-year 2022 results, following a prolonged delay since March 2023.
 
The company’s financial statement disclosed a revelation of overstatements in both revenues and profits. The figures were found to be inflated by £9.6 million and £23 million, respectively.
 
Notably, Revolution Beauty reported a substantial increase in pre-tax losses, which surged from £17.8 million to £44.9 million during the period under review. Additionally, Revolution Beauty faced an operating loss amounting to £38.9 million, largely attributed to its acquisition of Medichem.
 
Despite the turmoil, there was a glimmer of positivity as sales recorded a 35% surge, reaching £184.6 million. However, this figure fell short of the group’s initial forecast of £194 million.
 
Compounding Revolution Beauty’s woes, the company’s shares remain in suspension.