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Backing a discount retail cash generator

A distributor and manufacturer that sells a range of products to discount retailers and supermarkets has delivered a smart set of maiden results, and has been making some shrewd looking acquisitions, too.
Backing a discount retail cash generator
  • Pre-tax profit surges 21 per cent to £16.4m.
  • Revenue from vaping and sports nutrition segments soar both over 36 per cent.  
  • Earnings accretive small acquisitions.
  • Board eyeing up European expansion opportunities.

Supreme (SUP:203p), a distributor and manufacturer that sells a range of products to discount retailers and supermarkets (B&M, Home Bargains, Poundland, Morrisons and Sainsbury’s are all customers) has produced eye-catching maiden results.

Buoyed by the success of its vaping brand, 88vape, the market leader in the UK with a 30 per cent market share, group adjusted pre-tax profit surged 21 per cent to £16.4m on a third higher revenue of £122m in the 12 months to 31 March 2021. The vaping segment increased revenue by 36 per cent to £39.5m growth (all organic), of which a maiden nine-month contribution from a contract award from HM Prison & Probation Service accounted for £10m of the total and higher margin online sales around £6.5m.

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