Creightons delivered a mixed bag of results on Thursday but its shares rose immediately afterwards.

Earlier this month, it had warned its shareholders to expect an impairment charge for its Emma Hardie beauty business and to expect an “materially adversely impact the reported pre-tax profit” in its results to 31 March. At the time its shares fell 14%.

But they rose 17% in early trading onThursday after the personal care, beauty and fragrance products developer released the results report.

On the one hand, its gross margin performance improved and EBITDA for the year rose marginally, but revenues fell as a result of cost reduction and product portfolio rationalisation.

Revenue fell 9.7% to £53.2 million with a mixed performance across its three revenue streams. There was growth of 7.9% in Private Label revenue to £23.7 million, a dip in revenue through Brands, down 7.6% to £21million, and Contract manufacturing sales fell a hefty 38.9% to £8.4 million. The group’s total overseas business decreased by 20.1% to £8.5 million

But EBITDA increased to £3.2 million from £3 million a year ago and operating profit before exceptional items has dipped marginally to £1.54 million from £1.58 million. 

The operating margin percentage before exceptional items has improved to 2.9% in the year compared to 2.7% a year ago. Exceptional items included that Emma Hardie brand intangible asset impairment of £4.4 million.

“A significant feature has been a gradual improvement throughout the year with margins significantly improved in the second half of the year”, it noted.

The group said it has continued to successfully implement the six-point plan that includes increased selling prices, reduced overheads and increased efficiency.

Its new (as of March) MD Philippa Clark talked of a “challenging year” and added: “This year’s results represent a strong internally focussed strategy to ensure we tackled and conquered the challenges bought on by the tough economic conditions of the past two years, coupled with the ongoing macroeconomic and geopolitical pressures.

“Therefore, we have ensured that the key business fundamentals have been at the core of our activities during the year to ensure the group continues to deliver a sustainable and stable business.

“The difference in operating performance between H1 and H2 of the year ended 31 March demonstrate the impact of this focus.”