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£7m

Last Close 10.75p

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 June 2022 trading update was encouraging with respect to current trading (since April). Significantly, the launch of the curated multi-brand platform, which seeks to capitalise on the strengths of and customer loyalty to its core footwear offering and expand its addressable market, is confirmed as on time (end July) with an attractive blend of 14 new partners: nine apparel and five footwear. At the end of July management raised equity with the intention of investing in four key areas: growing the partner brand strategy, reactivating dormant retail customers, technology to improve the customer experience, and near-shoring of supply to improve inventory effectiveness. Our forecasts are under review.

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	11.9	0.8
2023E	59.5	7.5	2.0	3.8	2.8	0.6

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 21/09/2022