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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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 18/05/2022Content on SandpiperCI Group
Sector |
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Consumer
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | 17 |
| Forecast gearing ratio (%) | 26 |
Price performance
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Key management |
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| Dan Wilson | CFO |
| Mike Rutter | Retail managing director |
| Tony ONeill | Executive chairman |