THE WHAT? The independent investigation into Revolution Beauty Group by auditor BDO LLP has highlighted accountancy concerns, including historical sales, inventory provisioning and personal loans made by a former CEO, according to a report by Reuters.
THE DETAILS Addressing the probe in a statement, Revolution Beauty stated that the investigation found issues with its acquisition of Medichem in 2021 for US$31.73 million, with £19 million still overdue.
Concerns were also raised over personal loans made by Medichem Founders Adam Minto and Tom Allsworth, with other loans and investments totally around £1 million to one of its distributors, none of which had been disclosed.
THE WHY? Revolution Beauty has experienced rapid growth since its launch in 2014, selling via third-party retailers before focusing on a DTC model.
Amidst the fast growth, corruption has emerged, with trading in Revolution Beauty’s stock being suspended on September 1, 2022 after the company failed to published its audited results for the financial year ended February 28, 2022 due to ‘accounting issues’.
Medical aesthetic products refer to a category of products used in the field of medical aesthetics, which combines medical practices with cosmetic procedures to improve the appearance of individuals. These products are typically used under the supervision of trained medical professionals such as dermatologists, plastic surgeons, or specialized nurses. They are distinct from over-the-counter cosmetics in that they often contain higher concentrations of active ingredients or require medical expertise for their application.
Examples of medical aesthetic products include:
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Dermal Fillers: Injectable substances used to restore volume, fill wrinkles, and enhance facial contours. These may include hyaluronic acid fillers like Juvederm or collagen-stimulating fillers like Sculptra.
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Botulinum Toxin (Botox): Injectable neurotoxins used to temporarily paralyze facial muscles, reducing the appearance of wrinkles and fine lines caused by facial expressions.
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Chemical Peels: Solutions containing chemical exfoliants like glycolic acid, salicylic acid, or trichloroacetic acid, used to improve skin texture, treat acne scars, and reduce hyperpigmentation.
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Laser and Light Devices: Equipment used for various skin treatments, including hair removal, skin resurfacing, tattoo removal, and treatment of vascular and pigmented lesions.
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Prescription Skincare Products: Formulations containing active ingredients such as retinoids (e.g., tretinoin), hydroquinone, or prescription-strength antioxidants, designed to address specific dermatological concerns under medical supervision.
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Microneedling Devices: Devices that create tiny punctures in the skin to stimulate collagen production and improve skin texture and elasticity.
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Cosmeceuticals: High-quality skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing biologically active ingredients with proven efficacy.
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