Revolution Beauty agrees settlement with co-founder as CFO steps down

Revolution Beauty has announced the departure of Elizabeth Lake as Chief Financial Officer, as it reaches a settlement agreement with Co-founder Tom Allsworth.

Lake will be replaced by the group's current Non-Executive Director Neil Catto, effective from 1 January 2024.

Catto, who joined the Board of Directors in July 2023 , was previously CFO of Boohoo Group for 11 years. Prior to this, he held senior finance roles at BT, Carphone Warehouse and EY.

Alistair McGeorge, Chairman at Revolution Beauty, said: "Neil has been a trusted member of the board since joining five months ago, and I am pleased that he is now becoming CFO.

"I have no doubt that his considerable experience will prove a real asset as Revolution Beauty embarks on its next phase of growth."

The group has also appointed Erin Brookes, the Managing Director of professional services firm Alvarez & Marsal, as an independent Non-Executive Director with immediate effect.

The news comes as Revolution Beauty reaches an agreement with Tom Allsworth, the former Executive Chairman and Co-founder of Revolution Beauty, regarding the settlement of certain claims between himself and the business, the timing of future payments relating to the prior acquisition of Medichem Manufacturing Limited (now called Revolution Beauty Labs Ltd) from Allsworth by Revolution Beauty, and his future role within Medichem.

The group has agreed to pay Allsworth an ex gratia payment of £270,000 net (£490,000, when grossed up for taxes) in respect of certain historical legal fees incurred by him in connection with, among other things, the investigation of matters related to the Medichem SPA.

As part of the arrangements, Allsworth will also continue in the management team of Revolution Beauty Labs with the title "Founder & Director of Revolution Labs", though he will not be a statutory director.

Separately, and as originally announced on 20 June 2023, the company is continuing to seek a settlement agreement with Adam Minto, the former CEO and Co-founder of Revolution Beauty.

This relates to the events that led to the delay of the audit of Revolution Beauty's FY22 results and the suspension of trading of the group's shares on AIM during his time as Chief Executive.