It was a bitterly disappointing summer for shareholders in SuperGroup (SPG), which has lost more than half its market value since April. The spring/summer collection wasn't a hit with customers, while the warm autumn weather affected sales of the autumn/winter range.
As a result, like-for-like retail sales fell 4 per cent, while wholesale revenues eked out growth of just 2 per cent. Sales and administration costs rose by £20m as the group continued to expand and invest in IT systems, leaving group underlying pre-tax profit down almost a third to £12.5m. Management has nonetheless retained the full-year profit guidance of £60m-£65m it gave in October, stressing that the lion's share of earnings has historically been generated in the second half.
Unfortunately, the poor first half left SuperGroup with a high closing stock position of £108m - up from £75.3m a year before. Major discounts may be needed to clear it. New chief executive Euan Sutherland said he was reviewing "every aspect of the business" - including strategy, execution, cost management and capital allocation - and would report back to shareholders in the spring.
Cantor Fitzgerald expects pre-tax profit of £62m for the full year, and EPS of 57p, flat on last year.
| SUPERGROUP (SGP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 806p | MARKET VALUE: | £653m | |
| TOUCH: | 805-807p | 12-MONTH HIGH: | 1,749p | LOW:751 |
| DIVIDEND YIELD: | nil | PE RATIO: | 17 | |
| NET ASSET VALUE: | 336p* | NET CASH: | £66.6m | |
| Half-year to 25 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 192 | 9.9 | 2.6 | nil |
| 2014 | 208 | 17.2 | 17.2 | nil |
| % change | +8 | +74 | +562 | - |
Ex-div: na Payment: na *Includes intangible assets of £50.1m, or 62p a share | ||||
