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Supreme - Shares break into new highs

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.

A string of new share price highs followed an H1 update. No inflationary headwinds were evident and in fact Supreme saw gross profit margin actually rise from 25% to 30%. This is, of course, partly down to the greater proportion of products manufactured in house (61% from 56%) but chief executive Sandy Chadha says it is also down to being able to pull levers with suppliers.Overall H1 sales were +11% to £61.1m, pretax profit +25% to £8.5m and eps +13% to 5.2p. A maiden 2.2p dividend was paid. In terms of owned products, the Vaping category grew revenues organically by 13% to £21.7m, driven by new supply agreements into Sainsbury's and McColl's and the expansion of the contract with HM Prison Service into Scotland. As I had int ...

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Supreme - Upgrades expectations by £4m (3rd upgrade) (December 2023)

Supreme (November 2023)

Supreme - Upgrades guidance by 17% (October 2023)

Supreme - Accelerated trading in the first three months (August 2023)

Supreme - Second “profits ahead of” statement in four months (May 2023)

Supreme - Sells Red Astaire vape brand for €4.5m cash (April 2023)

Supreme - Disposable vapes grows strongly (March 2023)

Supreme - Upgrade cycle resuming (December 2022)

Supreme (September 2022)

Supreme (August 2022)

Supreme - Eps enhancing acquisition of Liberty Flights (July 2022)

Supreme (May 2022)

Supreme (November 2021)

Supreme - Launches digital vitamin brand (August 2021)

Supreme - Expands sports nutrition capacity (July 2021)

Supreme (June 2021)

Supreme - Multi-stage rocket in consumer staples (March 2021)

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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