Ultimate Products’ record FY2021 profits demonstrates both the agility and improving quality of the
Group, noting that trading was variously adversely impacted by UK and European lockdowns and the
well documented challenges across global supply chains. revenues increased by 18%, with both CPTP
and EPS ahead by mid-30% to £11.2m and 10.6p respectively – in line with expectations. We leave our
FY2022 forecasts unchanged, looking for EPS of 13.8p, with growth materially underpinned by the
Companies: Up Global Sourcing Holdings PLC
UPGS’s combination of strong brands, targeted distribution channels and demonstrable success in M&A augurs well for sustainable growth. Moreover, the company’s track record in coping with disruptions associated with Covid-19 should give investors confidence in senior management’s ability to handle any ongoing logistics problems associated with both international shipping and domestic haulage. We reiterate our 275p fair value for the shares.
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
UP Global Sourcing ('UP') has issued a trading update for FY21, the year to the 31st July; a year of exceptional achievement by this high quality and continuously improving company. A strong end of the year has resulted in sales above previously upgraded guidance, and a 4% beat to CPTP expectations at £11.2m leading to EPS of 10.6p. Trading on an unchanged FY22F PER of 15.4x and an EV/EBITDA multiple of 11.1x, forecast to yield 3.3% we view UP as an increasingly core holding in a small cap consu
UPGS’s pre-close FY2021 trading statement confirmed a strong end to the financial year with most key financial measures beating market expectations. Moreover, FY2022 appears to have started well despite ongoing headwinds. Sustainable growth is built on a focused brand portfolio (which now includes the whole Salter range), stronger distribution online and into supermarkets, plus further international progress. We upgrade our FY2022 profit forecasts.
UPGS’s announcement that it is acquiring Salter, the UK’s oldest housewares brand and notable for its scales, is a major positive step. The acquisition not only creates enlarged, outright ownership of a key brand and expands UPGS’s kitchen and bathroom offering, but also establishes a foothold in health & lifestyle. Moreover, the deal appears attractively priced for UPGS shareholders. Assuming completion, we raise our fair value for UPGS shares from 200p to 275p.
Ultimate Products (UP), the owner, manager, designer and developer of an extensive range of value-focused consumer goods brands, yesterday (24th June) announced that it has entered into a conditional agreement to acquire Salter Brands Limited (Salter) from FKA Brands Limited for an initial consideration of £32m. The acquisition is subject to both shareholder approval and a placing. Salter is a very well-established brand and the UK market leader for bathroom and kitchen scales. The proposed acqu
Ultimate Products has issued a very positive set of H1 2021 results to us, with strong revenue growth of 11%, coupled with increasing productivity (EBITDA margin +90bp to 11.6%), leading to >20% underlying EBITDA, CPTP and EPS growth. UP’s balance sheet is more than robust, with leverage a very comfortable 0.1x. A four-pillar growth strategy has broadened the Group’s growth channels, increasingly evident despite the challenges of Covid and the temporary closure of some customer stores. We put th
UPGS’s success in online and supermarkets, combined with the ability of key brands to resonate with its end-customers’ desire for quality affordable homebased products, shows that the company is well positioned for further growth as the Covid19 pandemic eases. Moreover, the potential for more M&A and new geographies implies substantial headroom for future expansion. We upgrade our profit forecasts and fair value in this report.
In the four years since Ultimate Products (‘UP’) undertook its March 2017 IPO, the Group has steadily evolved for the better, improving the quality of its growth, cash generation and returns through sustained investment in its human capital, its proprietary brand portfolio, and its operational and commercial capabilities. Such work is leading to the ongoing positive evolution of UP’s product range and customer base. The four-pillar growth strategy is fuelling ongoing trading momentum and the cre
Today’s announcement that UPGS has acquired German electrical kitchen brand Petra is a continuation of a strategy which has turned UPGS into a highly successful developer of brands. Petra not only adds to the company’s German offering, but further ahead will enhance the company’s international range of quality and affordable “feel good” household products. Brand management skills remain a key driver of UPGS’s ability to continue to grow at a brisk pace in both the online and supermarket channels
A strong performance from the group’s largest brand, Beldray, further growth in the online and supermarket channels, and the ability to offset increased Chinese shipping rates were key features of UP Global Sourcing’s FY2021 trading statement. Moreover, the company’s financial position continues to improve with both relatively low year end net debt and ample facilities headroom. We raise both our sales and profit forecasts in this report.
Ultimate Products has issued another very pleasing trading update for the 6 months to 31st January 2021, once again leading us raise our financial expectations. Trading has been strong, with +11.4% sales growth, whilst confidence in the H2 2021 delivery leads to raised full year sales, EBITDA and CPTP guidance. We upgrade our FY2021 CPTP forecast by 5% to £10.4m, leading to EPS of 10.0p (we also upgrade our dividends expectations). Trading on a FY2021 PER of 13.5x, and an EV/EBITDA multiple of 9
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AFC Energy has announced that its “S” Series hydrogen fuel cell system and ammonia cracker have been selected for the Norwegian ZeroCoaster bulk cargo ship design. The proposal has also been awarded “Approval in Principle” status by DNV, the international certification agency. The announcement is another significant endorsement of AFC Energy’s technology and the group’s biggest step forward in Maritime. This is further endorsement of our investment thesis, which was refreshed in September, which
Companies: AFC Energy plc
Companies: DX (Group) Plc
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
The oversubscribed placing to raise £25m and £2m open offer leaves Velocys well placed to move forward on its reference projects and strengthens its ability to address further demand as airlines increasingly seek out sustainable fuelling solutions. We have updated our forecasts for the raise and after a review of project timings. These show that if the company can progress its projects, it is capable of being cashflow positive in FY 24 without recourse to further funding. Our DCF based central c
Companies: Velocys plc
While there remains considerable uncertainty over the planning and permitting of the Uskmouth power station conversion there have been a couple of recent pieces of good news for SIMEC Atlantis in our view. Inclusion of waste-to-energy in the carbon capture support model is potentially positive for Uskmouth and may increase its political attractiveness to the Welsh Government as they consider permitting. The ring fencing of CfD support for tidal steam in the next allocation round opens up the pos
Companies: SIMEC Atlantis Energy Ltd.
Macfarlane Group, the leading protective packaging solutions specialist, servicing clients across the UK
and now emerging into Continental Europe, has issued a trading update this morning (25 November)
covering the period since end June and the year to date. Trading has continued to be robust in a difficult
supply chain environment and the Group now expects to exceed its previous expectations for the full
year. Sales growth for the year to date has accelerated through to October at rate of +2
Companies: Macfarlane Group PLC
Powerhouse has seen early benefits from the agreement signed with HUI in October with this progress on a new project site in Bulgaria. Details have still to be agreed but we see the project as an example of further international demand for the company’s waste to hydrogen technology.
Companies: Powerhouse Energy Group PLC
The H1 results were a bit of a double check. First, how high hopes (battery materials) persist in a rapidly changing environment, something already communicated to the markets. The second, and a rather annoying one, was how to deal with the issues as management was not really transparent. This explains the strong miss in EBIT compared to the consensus. We were also wrong-footed as our impairment figure was far too low.
Companies: Johnson Matthey Plc
A stellar financial performance in the first half shows Brickability at its best, delivering growth from organic and acquisition sources, gaining share and strategically, and importantly, continuing to diversify and de-risk the business by broadening its product ranges and customer depth. Whilst the half has been an extraordinarily favourable one in comparative terms and our instinct is to believe that forecasts can be beaten going forwards in both the short and medium-term from the enhanced pla
Companies: Brickability Group PLC
Seeing Machines has announced results for its financial year ended June 2021 and, after the 3 August 2021 trading update, there were few surprises in the numbers with the company trading ahead of expectations in terms of margins and cash. This reflects the successful focus by the management on reducing costs and conserving cash. However, with the conclusion of the recent fund raise, we expect the company to change gear to investing in the business and managing for longer term shareholder value.
Companies: Seeing Machines Limited
The trading update confirms that TClarke is on track to meet FY21 expectations signalling a strong recovery from the pandemic-hit 2020 with revenues +47%, H2 margins back at 3%, underlying EPS +50% and net cash of c£5m in the year-end balance sheet. The highlight, in support of its target £500m turnover by 2023, is continued improvement in the order book, currently at £525m (end June £503m) including a record £320m (+25%) secured for a year out. This is not ‘being bought' but comes with a real s
Companies: TClarke plc
LTHM announced exceptional results for H1F22 ended 30 September 2021. H1F22 revenue reached £193.9m, +81.2% over H1F21 of £107m. This is notably a stellar first half driven by demand-supply imbalances in global markets that have resulted following the pandemic. Resulting PAT of £26.6m translates to EPS of £1.335 vs. £0.256 in H1F21.
Companies: James Latham Plc
Oil prices suffered one of the largest ever one-day plunges, crashing more than 11% on Black Friday as a new coronavirus strain sparked fears that renewed lockdowns will hurt global demand. The crash, the 7th largest ever for Brent crude, the global oil benchmark, may prompt the OPEC+ cartel to re-consider its policy when it meets next week, with the group increasingly leaning toward pausing its output hikes. The sell-off was amplified by low liquidity on a festive day in the US, the breach of s
Companies: FO 88E DEC EME GTC TRIN UOG WEN
Companies: Volex plc