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The Aim 100 2015: 40-31

In the seventh 10-company segment of our analysis of Aim's top 100 companies, we give our verdict on Patisserie, Petroceltic International, First Derivatives, GVC, Gemfields, Numis Corp, Advanced Medical Solutions, Burford Capital, Boohoo.com and Smart Metering Systems
The Aim 100 2015: 40-31

40. PATISSERIE

A strong contender for owner of the best stock market ticker symbol, Patisserie – parent of the Patisserie Valerie café chain and traded on Aim as CAKE – has seen a strong performance in its shares since they listed on Aim a year ago. In fact, following the company’s announcement in November that pre-tax profit had grown 26 per cent to £10.4m in the year to 30 September, the shares have leapt in value by a third.

The interest in the stock has been underpinned by the quality brand and increased confidence in the consumer outlook, as people are spending more eating out. Against this backdrop, 20 store openings are scheduled for this financial year, in line with the company’s expansion plans. Patisserie is clearly adept at picking prime locations for its stores, as a number of those opened last year had already generated enough cash to pay back their capital outlay by November.

Analysts at Canaccord Genuity expect adjusted EPS of 11p this year, meaning the shares trade at 25 times earnings. A maiden dividend expected at the end of this year should add to the investment case, but the shares currently look at the pricier end of the sector. Hold. AN

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