A message from our CEO*

Silverwood exists to build great brands. Brands that have clear reasons for being in a competitive industry.

We take pride in the craft of manufacturing our products, pride in carrying out the operational functions of the business (even where no one sees them), and pride in serving our customers.

We would encourage all our stakeholders to use your brands. For those investors yet to do so, we would encourage you to contact us to receive an investor discount code so you may enjoy your brands.

We began the period with four unique beauty brands. Steamcream, Cigarro, Balmonds, and Nailberry. Each with strong positioning in their respective sectors, and we believe, each with great potential for growth over the long term.

In March 2024, we added to the business with the acquisition of Cosme Science Corporation (CS) and its subsidiary, Dr. Baeltz Corporation (DB). This strategic move brings a premier Japanese research and OEM beauty manufacturer with a 40-year legacy into the Silverwood family. This acquisition significantly strengthens our portfolio and provides control over our production needs along with new opportunities for growth and innovation.

At this stage I'm reminded of a quote attributed to J P Getty when discussing the formula for success:

"Rise early, work hard, strike oil"

We have assembled an exciting portfolio of brands where your management teams rise early and work hard - with a dedicated grind that will eventually bring an oil strike.

We have added new distribution, for example with Balmonds entering Boots in 2025. We have increased the strength of our offerings, for example with our new bio-sourced formulas at Nailberry, ensuring we continue to lead the healthy nail market. And we have prepared for further international growth, for example having completed a new brand design and packaging project to enable Steamcream to expand, having been primarily sold in the Japanese market to date.

We have also added key members across the group, to continue to strengthen our teams. We also know that brands do not follow a tidy linear pattern when growing. On a month to month basis, even a year to year basis, there will be bumps.

Most encouragingly, we continue to get positive feedback from our existing customers about our products.

Our reporting period is 18 months as we had different year ends across the business, with our largest functions in Japan working to a June year end. We have, therefore, moved the group to match this year end. This has resulted in some delays to our audit and gives a distortion to the figures within this report which we will provide commentary to clarify.

Our operational reporting on the business is greatly impacted by the Group-level IFRS based accounting adjustments that we are required to use in presenting our accounts. We present a reconciliation of our underlying trading performance as the management team views it, the various accounting adjustments and our IFRS based result.

For a clearer picture of our operational performance, please also see the brand-by-brand analysis.

I want to extend my sincere gratitude to our customers for their continued loyalty and to our teams for their unwavering commitment and dedication. Your "rise early, work hard" efforts are the foundation of our success.

I also want to extend my gratitude to Sonia Hully, the founder of Nailberry, who did an amazing job in creating a profitable business based on her strong beliefs around customers, product quality and animal welfare. Sonia completed the hand over period we asked her to maintain and will be pursuing new adventures. We wish her well.

Our focus remains on growing our brands.

We are fortunate to receive new acquisition opportunities and we will continue to assess these as they arise.