The Beauty Tech Group lifts FY outlook, shares spark

(Sharecast News) - Shares of The Beauty Tech Group rallied on Tuesday after the company lifted its full-year outlook. In a trading update for the six months to the end of June, TBTG said it has continued to perform well and that first-half revenue will be "materially" ahead of the prior year. It highlighted growth across the core business and all key markets and channels.

"This strong performance, when combined with the group's well-invested operating model, has also driven margin improvement," the company said.

As a result, it now expects revenue and adjusted earnings before interest, tax, depreciation and amortisation for the year ending 31 December 2026 to be "no less than" £170m and £45m, respectively. This compares to market expectations for revenue of £161.7m and adjusted EBITDA of £41.5m.

Chief executive Laurence Newman said: "The strong performance delivered during the first half of the year reflects the quality and ever-growing awareness of the group's innovative and premium beauty technology brands. We have achieved significant growth across our core business and across all key markets and channels, while our ongoing commitment to investment in research and clinical studies continues to underpin demand for our products. As a result, we are pleased to upgrade our FY26 expectations.

"With a number of product launches in the pipeline, coupled with the At-Home Beauty Device market continuing to grow at pace, we enter the second half of the year with positive momentum and I look forward to providing shareholders with a more detailed update in our Interims in September."

TBTG's interim results are due to be published in September.

At 1227 BST, the shares were up 7.5% at 358p.

Berenberg lifted its price target on the stock to 550p from 500p after the update, and maintained its 'buy' rating. The bank noted that this is the fourth guidance upgrade since the group listed on 3 October 2025.

"We raise our FY 2026E forecasts to the new 'no less than' guidance, and flow this through to outer years, where our EBITDA forecasts also rise circa 10%," Berenberg said. "As with the previous guidance upgrade at the FY 2025 results in April, we effectively bring our forecasts forward by one year. This means that since our initiation in November 2025, we have raised our FY 2026E EBITDA by 33% in total, and it now stands circa 15% ahead of our original FY 2027E forecast.

"Again, our profit upgrades drop through to higher net-cash (debt-free) estimates of £61m in FY 2026E, rising to £127m in FY 2028E."

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