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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Supergroup - Prospective PE will drop to just 11.7 next April

January 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SGP
  • Price:
  • 812p
The shares fell after Supergroup announced half year results that were affected by the mild autumn, with revenues up 8.4% to £208.2m but underlying pretax profit fell 31% to £12.5m, leaving eps at 11.9p (2013: 16.3p). While gross margin rose 2.2% thanks to its recent acquisition of several European partners and lower wholesale clearance, operating expenses rose 21% to result in an EBIT margin down 3.4% to 5.8%. Stock at the end of H1 was up 42% year-on -year and in addition to its usual clearance activity management will use some tactical promotional activity in H2.Within retail, sales rose 12.5%, reflecting the opening of 12 new owned stores, which added 46,000 sq. ft. to the portfolio and it is on track to add 80-100, ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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