Investment Case

Branded business

Brand Architekts’ focus is to build a portfolio of high-performance, solution-led profitable brands with low capital investment requirements and the potential for superior financial returns.

Distinctive brand portfolio

The business has adapted its brand portfolio to focus resources and investment behind its efficacy-based problem-solving solution brands. These brands engender greater consumer loyalty and higher margins. Brand Architekts portfolio provides branded solutions for skincare, self-tan and male grooming needs.

Established relationships with retailers both domestically and internationally

Understanding the needs of retailers and consumers alike, and answering them with distinctive and compelling products, has been the foundation of Brand Architekts’ success to date. It also reflects the strength of relationships that the business has long enjoyed with its key customers. We will now look to build on that trust and credibility by better understanding our end consumers and their individual needs. By applying more science and analysis of data we can improve and create more powerful, sustainable brands of real substance.

Opportunities for further growth online and internationally

The increasing shift online has highlighted the importance of having a strong direct-to-consumer (DTC) reach. All key Invest and Nurture brands (except Dirty Works) will have their own DTC platforms by the end of FY24. Investment in specific DTC sites will strengthen our consumer reach and brand engagement. In parallel, we will focus on maximising our brands’ omnichannel potential in new international markets and building relationships with appropriate distribution and retail partners.

Substantial net cash position

The Group had a strong net cash position of £8.2m at the year end.

Potential for M&A

Whilst in the short term our strategic focus is a return to profitability, the Group remains alert to acquisition opportunities that will be margin accretive (60%+), provide scale and further strengthen its areas of core competence – category, channel and consumer – as well as more nascent areas for the Group such as DTC and international reach. The business will factor in current and future consumer behaviour and consumption. We will identify brands with strong product points of difference or unique selling points, ideally with some proprietary technology and preferably £3m+ net sales, which we can acquire through existing cash resources.