SandpiperCI Group

TISE International Stock Exchange: SANDPI

Market Cap£94m

Last Close 82p

SandpiperCI 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 more recently the Isle of Man. It is a dependable operator and upholds the franchisor’s brand values. 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. However, this is unlikely to occur in the short term given the ongoing pandemic. The FY21 results demonstrated the group’s resilience: in spite of lockdown-related store closures and significant extra pandemic-related costs such as PPE and social distancing measures, gross revenues were up 6% and trading EBITDA was up by 3%.

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 26.4 32.5
2021A 200.4 11.3 5.1 4.09 23.0 10.0
2022E 205.2 11.8 5.3 4.25 22.1 10.4
2023E 210.4 12.1 5.3 4.27 22.0 9.3
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 01/11/2021
Content on SandpiperCI Group
SandpiperCI Group – Powering ahead
Consumer | Update | 21 May 2021
trolley in front of freezer aisle
SandpiperCI Group – An island of opportunity
Consumer | 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
Tony ONeill Executive chairman