Unbound Group (AIM: UBG)

Currency in GBP

Last close As at 04/02/2023

GBP0.04

−0.05 (−1.16%)

Market capitalisation

GBP3m

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.

Latest Insights

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Consumer

Unbound Group — Platform launch on time

Consumer

Unbound Group — Strong momentum in Q123

Consumer

Unbound Group – executive interview

Consumer

Unbound Group — A reassuring debut

Sector

Consumer

Equity Analyst

Russell Pointon

Russell Pointon

Director, Consumer

Key Management

  • Daniel Lampard

    CFO

  • Ian Watson

    CEO

Balance Sheet

Forecast net debt (£m)

7

Forecast gearing ratio (%)

3500

Share Price Performance

Price Performance
% 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

Financials

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

Research

Consumer

Unbound Group — Platform launch on time

Consumer

Unbound Group — Strong momentum in Q123

Consumer

Unbound Group – executive interview

Consumer

Unbound Group — A reassuring debut

Consumer

Unbound Group — A platform for growth

Thematics

Consumer

ConsumerWatch – January 2023

Consumer

ConsumerWatch – October 2022

Consumer

IPO apocalypse

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