SandpiperCI Group

TISE International Stock Exchange: SANDPI

Market Cap£91m

Last Close 90p

SandpiperCI Group operates a high-quality portfolio of retail brands covering food, clothing and specialist products. It primarily operates franchise stores but also a number of its own food convenience stores. It is the leading Channel Islands retailer and is also present in Gibraltar and the Isle of Man.

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Investment summary

Sandpiper has been able to leverage its relationships with its franchise partners to open their brands in additional geographies: initially Gibraltar and subsequently the Isle of Man. It is a dependable operator and it owns a high-quality freehold property portfolio, valued at £64m in January 2021, which provides a barrier to entry for the competition. There are some opportunities for in-fill across existing geographies, but we believe that more significant long-term opportunities lie in developing into new territories and an expansion into an adjacent segment such as hospitality. The H122 results confirmed the group’s resilience, with gross revenues up 7%, and two-year food retail like-for-likes up 17.5%. Trading EBITDA was up 26% versus the prior year (which was affected by trading restrictions). Management remains confident in its outlook despite the well-documented challenges affecting the entire sector, such as labour shortages and inflationary cost pressures. We expect FY results to be published in May.

Y/E Feb
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 188.5 11.0 4.5 3.56 25.6 31.5
2021A 200.4 11.3 5.1 4.09 22.2 9.7
2022E 205.2 11.8 5.3 4.25 21.4 10.0
2023E 210.4 12.1 5.3 4.27 21.3 9.0
Industry outlook

Our medium-term sales growth of 3.5% for Sandpiper reflects consensus RPI forecasts of c 3% and modest space growth, as Sandpiper expands across its existing geographies.

Last updated on 18/05/2022
Content on SandpiperCI Group
SandpiperCI Group – Powering ahead
Consumer | research Update | 21 May 2021
trolley in front of freezer aisle
SandpiperCI Group – An island of opportunity
Consumer | research Initiation | 15 January 2021
trolley in front of freezer aisle
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Share price graph
Balance sheet
Forecast net debt (£m) 17
Forecast gearing ratio (%) 26
Price performance
%
1m
3m
12m
Actual N/A N/A N/A
Relative* N/A N/A N/A
52-week high/low 97.0p/75.0p
*% relative to local index
Key management
Dan Wilson CFO
Mike Rutter Retail managing director
Tony ONeill Executive chairman