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Mulberry

January 2022

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:
  • MUL
  • Price:
  • 330p
The shares soared after Mulberry announced half year results ahead of expectations with underlying operating profit of £6m (vs £4m forecast) implying an EBIT margin of 9.5%. Including the gain on disposal of its Paris lease, pretax profit was £10.2m. The higher than expected profit was driven by a remarkable 1000 basis point jump in gross margin to 69% due to a full price focus and increased volume efficiencies. Critically, the strong trading has continued into October and November while gross margin is expected to be “similar to or slightly higher than the 67% achieved in H2 last year.” With net cash climbing from £8.6m to a whopping £30.3m, management will significantly increase marketing spend ...

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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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