Online shopping and digital marketing concept, Woman using digital tablet with shopping cart icon on screen on dark background.

Unbound Group

LN: UBG

Market Cap£15m

Last Close 34.5p

Unbound Group is the parent company for a group selling a range of brands focused on the over-55 demographic. It will build on the foundation of its main business, Hotter Shoes, to grow value through a curated multi-brand retail platform with a range of complementary products and services.

Investment summary

Unbound Group’s (UBG’s) Q123 trading update to the end of April 2022 shows continuing strong momentum, in contrast to recent trends in the wider consumer space. Management’s outlook for FY23 is unchanged despite the more challenging macroeconomic environment due to inflationary pressures. The company is making good progress with signing new partner brands to the Unbound platform, which should launch in July 2022. Our forecasts are unchanged ahead of the June publication of results for the 12 months ended January 2022 and do not reflect a recent property disposal that would help UBG’s financial position (£1.75m). Our DCF-based valuation remains 165p per share.

Y/E Jan	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2020A	85.5	10.9	0.5	N/A	N/A	N/A
2021A	44.5	(6.9)	(14.3)	N/A	N/A	N/A
2022E	51.9	5.5	0.3	0.9	38.3	2.6
2023E	59.5	7.5	2.0	3.8	9.1	1.9

Industry outlook

Unbound’s structural growth drivers include: an ageing population; the 55+ demographic is the wealthiest, and has the greatest disposable income; increasing online penetration and digital literacy; increasing focus on health and wellbeing; and the core demographic is materially underserved online and offline.

Last updated on 13/05/2022