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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Supergroup - Poor update; introduce stop-loss

November 2011

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:
  • 680p
Supergroup shocked the market by warning that problems with stock management would knock up to £9m off full-year profits. The bugbear was apparently problems integrating a new IT stock system at its new warehouse in Gloucester, which had been designed to improve efficiencies but which has caused a severe reduction in availability in both stock and range of sizes at its UK stores. Its international side and wholesale operations remain unaffected. Supergroup has been forced to rent temporary warehouse space while it sorts the problems out. In response broker Peel Hunt has downgraded current year pretax profit forecasts from £70m to £62m for eps of 57.4p. One obvious issue is that Supergroup did not flag this up when it rel ...

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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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