Amirose London: Tapping into Undervalued Capacity for Scalable Growth

The personal care contract manufacturing sector has long been overlooked by investors, but Amirose London Holdings PLC (ALH) is now positioning itself as a disruptor in this niche market. With its recent £100,000 share subscription and a post-admission valuation of £5.87 million, the company is primed to leverage its underutilized manufacturing capacity and pursue strategic acquisitions to drive EBITDA breakeven and beyond. For growth-oriented investors, this represents a compelling entry point into an undervalued sector with scalable upside.

A Strategic Capital Raise to Fuel Growth

On June 6, 2025, Amirose completed its acquisition of Amirose London Ltd and secured admission to the Aquis Stock Exchange, marking a pivotal shift from its prior identity as File Forge Technology PLC. The recent £100,000 share subscription—raising capital via the issuance of 2 million new ordinary shares at £0.005 each—adds to a broader fundraising effort that totals £375,500. This capital will directly fund working capital needs and accelerate growth initiatives, including the full utilization of its underused factory in Thetford, Norfolk.

The share subscription also included 288,000 shares allocated to Novum Securities Limited as part of its advisory retainer, with all new shares expected to trade on the Aquis Stock Exchange by June 16. Upon admission, the total number of shares in issue will rise to 121,071,865, diluting existing holdings but bolstering the balance sheet to support expansion.

Leveraging Underutilized Capacity: A Path to Profitability

Amirose's core advantage lies in its underutilized manufacturing capacity. With 86 employees and facilities serving 75 clients across over 200 brands, the company has historically operated at only partial capacity, generating £12.7 million in 2024 turnover but just £38,800 in profits. However, draft 2025 accounts show progress: turnover dipped slightly to £11 million, but EBITDA reached breakeven—a critical milestone.

The CEO, Michael Heath, emphasized this shift in a recent statement: “The focus is now on maximizing existing infrastructure to achieve full capacity utilization. This will drive margin improvements and position us to capitalize on high-margin contracts.”

A hypothetical chart showing EBITDA moving from negative £50k in 2023 to breakeven in 2025, with projections for £500k+ by 2026.

Strategic Acquisitions: Scaling Beyond Organic Growth

While Amirose's recent financials reflect operational discipline, its long-term ambition hinges on strategic acquisitions. The company has explicitly stated plans to expand its service offerings—such as regulatory compliance support, formulation development, and distribution—through acquisitions of complementary businesses. This approach would allow Amirose to:
- Absorb underutilized assets of acquired firms, reducing integration costs.
- Expand its client portfolio, particularly in high-margin segments like premium beauty brands.
- Access new technologies or expertise, such as sustainable packaging solutions or niche formulations.

The CEO's vision extends beyond manufacturing: “We're not just a contract manufacturer. We aim to become a strategic partner to brands, offering end-to-end solutions—from formulation to distribution. Acquisitions will be key to unlocking that potential.”

An Undervalued Sector with Untapped Potential

The personal care contract manufacturing sector remains undervalued, with Amirose's £5.87 million market cap reflecting its early-stage growth. By comparison, peers in adjacent sectors (e.g., specialty chemicals or cosmetics) often trade at 5-10x EBITDA multiples.

A hypothetical table comparing Amirose's valuation to peers like Coty or L'Oréal's contract manufacturing arms.

Amirose's valuation appears conservative given its scalable infrastructure and the broader industry tailwinds. The global contract manufacturing market is projected to grow at 6-8% annually, driven by brands' outsourcing trends and rising demand for niche, premium products.

Risks and Considerations

• Execution risk: Successfully integrating acquisitions requires managerial bandwidth.
• Capacity utilization: Overexpansion could strain operations if demand doesn't materialize.
• Sector volatility: Personal care demand is sensitive to economic cycles.

However, the company's recent breakeven EBITDA and diversified client base (serving over 200 brands) mitigate these risks.

Investment Thesis: A Timely Entry Point

Amirose presents a compelling risk-reward profile for growth investors:
1. Valuation upside: A modest market cap of £5.87 million leaves room for expansion. Achieving £500,000 EBITDA in 2026 would justify a 6x multiple, pushing valuation to £3 million+—a 50%+ increase.
2. Capital structure flexibility: The recent £375,500 raise provides ample liquidity to fund acquisitions and working capital.
3. CEO credibility: Michael Heath's dual role as CEO and Finance Director signals hands-on leadership, while his track record in capital markets builds investor confidence.

Conclusion: A Niche Play with Scalable Upside

Amirose London is at an inflection point: its underutilized capacity, strategic capital raises, and acquisition pipeline position it to transform from a breakeven operator to a high-margin player in personal care manufacturing. For investors willing to look beyond headline numbers, this is a niche opportunity with asymmetric returns. The shares, now trading at £0.005 post-dilution, offer a leveraged exposure to EBITDA growth—a rare combination in today's markets.

In short, Amirose is a story of undervalued assets, disciplined execution, and a CEO with a clear vision. For growth investors, this is a timely entry point to capitalize on a sector poised for expansion—and a company ready to lead it.