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Last close As at 04/02/2023
▲ −0.05 (−1.16%)
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.
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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.
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