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.
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.
Consumer
Consumer
Daniel Lampard
CFO
Ian Watson
CEO
Forecast net debt (£m)
7
Forecast gearing ratio (%)
3500
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (45.2) | (55.3) | (92.3) |
Relative | (48.1) | (59.4) | (92.4) |
52 week high/low | 57.0p/3.9p |
Despite the increasing economic challenges through H123, Hotter Shoes has demonstrated strong revenue growth of over 10%, with the majority of the growth in the company’s retail activities. With respect to the key KPIs there was growth in the customer base of 5.5%, average order value of 12.3%, and an increase in the order frequency. The higher gross margin (+180bp to 63.4%) compares with management’s guidance of approximately two percentage points above pre-COVID levels from FY23. The operating profit of c £1m is a significant improvement versus the prior year’s operating loss after adjusting for the benefit of COVID-related support (ie CJRS, rent and rates relief). Management points to tougher trading in recent weeks and guided for FY23 pre-exceptional operating profit of between nil and an operating loss of £1m after non-recurring costs of £0.7m. 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 | 4.7 | 0.3 |
2023E | 59.5 | 7.5 | 2.0 | 3.8 | 1.1 | 0.2 |
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