Beauty Tech shares glow as boss brushes off ‘cheap’ rivals

Laurence Newman, the boss of Beauty Tech Group, dismissed competition from low-cost beauty devices after the London-listed firm recorded more than triple its first-half profit. The company's shares surged more than 13% to £395 on Thursday, after revenue jumped 44.3% to £79.7m in the six months to June. Profits rose from £5m to £17.5m, with gross profit increasing 52.8% to £51.3m.

Newman explained that women typically do not want to buy expensive devices for their faces, as few are willing to spend £20 on such items. Around 85% of customers search for the company's brands before making a purchase, he added. Newman stated that the group had not seen evidence of customers cutting back on spending due to financial pressure, describing demand as "price inelastic."

The third generation of CurrentBody's LED mask costs around £100 more than the previous version, but Newman suggested prices were unlikely to rise further. Beauty Tech maintained its full-year revenue forecast of at least £170m and raised profit expectations. The company also announced a £20m share buyback and is not considering acquisitions, as it is focused on delivering its existing growth plans.

Beauty tech has accounted for around 1% of beauty spending in the group's main markets, and Newman rejected concerns that popularity of LED masks could be short-lived, citing the long-standing use of similar technologies in clinics. The company plans to open its own laboratory in early 2027 and is investing in research on the effects of LED treatment on skin.