This looks a really interesting stock, does anyone here hold this or looking at entry at the moment?
- June IPO report - 262p
- High of 341.8, low of 85.12, SP currently 99.6p
- Insider ownership above 46%
- Revenue up 29% in 2021
- Profit before tax of 19.7m including 9.4m of exceptional IPO costs, compared to 23.7m in 2020.
- EPS of 5.3p per share, 11.1p adjusted excluding exceptional costs
Key statements to also note:
Total fees incurred in relation to the IPO were £9.8 million, of which £9.4 million has been expensed through the income statement as an exceptional item, with the balance of £0.4 million being charged to the share premium account.
The Group incurred share-based payment charges (including associated NI) of £7.7 million (2020: £nil). The majority of the charge recognised relates to shares awarded to management to incentivise a change in ownership such as the IPO that occurred in June 2021.
And for Dividend Investors:
No final dividend for the year ended 30 September 2021 has been declared. The current intention of the Board is to pay a dividend in relation to the financial year ending 30 September 2022.
I see holding back dividends for another year as a good sign to further build up cash in bank, currently at 32m.
All in all I see the latest results as good. The EPS all being the same, should increase from 5.3p back to 11.1p would give a great yield going forward at current suppresses levels. That said given the note from directors of potential future headwinds, taking a 50% haircut and assuming EPS remains around the 5p mark, this share looks great value right now.
Another metric I like is the company has been profitable the last 3 years, has no debt, and I like what I see in the IPO document that originally listed this company at 262p.
I still need to run through analysis of typical consumer spend, and market size but this is looking to be a bargain at current levels.
If I were to bet, I could see the SP in the 6-12 month plus range depending on interim results returning to a range of 140-160p, so room for both capital and income growth here, but as always DYOR.
Note: I currently hold no shares.