- UP Global Sourcing saw a 12 per cent sales jump in its first half
- Investors will get a 1.69p interim payout after the strong six months
It’s a good time to be in the budget appliance and kitchen gadget game. UP Global Sourcing (UPGS) saw its profits climb in the six months to 31 January on the back of a surge in sales driving earnings up, even as lower-margin online sales took up a greater overall share.
Underlying cash profits were up a fifth on the year before at £8.8m, alongside a cut to debt and UPGS repaying UK government furlough cash.
Chief executive Simon Showman said the increase in home working and cooking and “a more considered approach to spending” by consumers had boosted his company’s earnings.
The pandemic did bring some difficulties. The global shipping squeeze in the early months of this year will knock 1-1.5 per cent off the second half gross margin, through “substantial additional shipping costs” in January and February.
Consensus estimates compiled by FactSet see full-year adjusted earnings per share at 10.1p, up from 7.9p in 2020.
UPGS has a solid business and shareholders have benefited through a major share price increase and higher interim dividend. Hold at 165p.
Last IC View: Sell, 38p, 30 Apr 2018
| UP GLOBAL SOURCING (UPGS) | ||||
| ORD PRICE: | 165p | MARKET VALUE: | £ 136m | |
| TOUCH: | 161-166p | 12-MONTH HIGH: | 173p | LOW: 49p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 19p | NET DEBT: | 29% | |
| 6 months to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2020 | 68 | 6.0 | 6.00 | 1.16 |
| 2021 | 75 | 7.2 | 7.30 | 1.69 |
| % change | +12 | +20 | +22 | +39 |
| Ex-div: | 17 Jun | |||
| Payment: | 18 Jun |
