Fashion retailer Supergroup (SPG) spent much of last year preparing for growth. It added 66,000 square feet of retail space across the UK and Europe and the franchise network grew by 55 stores globally, entering 10 new countries.
Additionally, 10 local language websites went live and the womenswear range improved. To boost efficiency and capacity, Supergroup will also move to a new warehouse in October, costing £5m, but delivering significant savings by 2015. Since the year-end, Supergroup has also agreed to buy out its Spanish partner for €2.3m (£2m) as part of a strategy to take control of its European distributors.
Despite expansion spend, underlying operating profit grew 22 per cent year-on-year to £52m and the group gross margin improved 130 basis points to 58.3 per cent. That margin expansion reflected better buying, an improved sales mix and currency gains - which more than offset higher central costs. Retail revenue grew 19 per cent in the year, or 5.7 per cent on a like-for-like basis, and online sales rose 27.8 per cent. While, at the wholesale operation, a 16.4 per cent sales slide in the UK and Ireland was offset by a decent overseas performance - leaving divisional sales up 7.4 per cent overall.
Broker Canaccord Genuity expects adjusted pre-tax profit of £60.1m in 2014, giving EPS of 54p (2013: £52.1m/46.2p).
| SUPERGROUP (SGP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 841p | MARKET VALUE: | £677m | |
| TOUCH: | 840-842p | 12-MONTH HIGH: | 846p | LOW: 328p |
| DIVIDEND YIELD: | nil | PE RATIO: | 19 | |
| NET ASSET VALUE: | 278p* | NET CASH: | £54.5m | |
| Year to 28 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 76.1 | 7.59 | 14.0 | nil |
| 2010 | 139 | 22.5 | 127 | nil |
| 2011 | 238 | 47.3 | 37.9 | nil |
| 2012 | 314 | 51.4 | 45.0 | nil |
| 2013 | 360 | 51.8 | 44.7 | nil |
| % change | +15 | +1 | -1 | - |
*Includes intangible assets of £41.5m or 52p a share | ||||
