Supreme Share Discussion Threads

[johndoe23] 15/9/2022 07:29

Nothing mentioned regarding previous warning on profits? So assuming all is rosy now?!

[masurenguy] 15/9/2022 07:24

AGM Statement

Supreme provides an update ahead of its Annual General Meeting ("AGM") today.

At the meeting, Paul McDonald, Chairman of Supreme, will make the following statement:
"Supreme delivered a strong performance across the year ended 31 March 2022, underpinned by organic growth across our leading divisions, as well as acquiring highly complementary businesses. We have continued to develop an extensive network of loyal customers across the retail space, and we are delighted with the progress we have made in increasing our retail penetration, alongside the positive impact of recent brand and product launches.

Trading for the current financial year remains in line with market expectations, with the business well-placed to deliver on our strategic aspirations, supported by the recent acquisitions of vaping business Liberty Flights Limited and the purchase of trade and assets of Cuts Ice Limited and Flavour Core Limited. Our fast-growing Vaping category continues to underpin the Group's growth. Alongside the continued strong performance of our 88vape brand, including new customer wins across grocery and convenience retail, we remain committed to evolving our Vaping segment as evidenced with the acquisitions of Liberty Flights in June 2022, and Cuts Ice and Flavour Core in August 2022. Highly complementary and immediately earnings enhancing, the two transactions will deliver scale to the Group and are projected to generate additional cross-sell opportunities, whilst the integration of Cuts Ice will enable us to focus on expanding our European footprint, an integral component of our overarching growth strategy. The rest of the Group continues to perform in line with expectation and the overhead base continues to be tightly managed.

As the UK Government and global health experts continue to endorse vaping as an effective smoking cessation tool, Supreme recognises the significant role the Group will play in supporting a tobacco free UK by continuing to offer both credible and safer alternatives for nicotine consumption. By delivering great value, high quality products to market via our extensive distribution network, we remain well-placed to help mitigate the impact of the cost-of-living crisis on consumers. We continue to explore additional M&A opportunities to complement the Group's organic growth, and the Board remains confident in Supreme's strategic ambitions, underpinned by the exciting prospects within Vaping."

[davidn67] 31/8/2022 14:55

4% divi So price would have to come down to £0.89 to equate

[johndoe23] 31/8/2022 14:11

Or wait until tomorrow to pick shares up cheaper...

[davidn67] 31/8/2022 11:53

Ex divi day tomorrow. Lump in today

[scottk1976] 29/8/2022 20:48

https://news.sky.com/story/vaping-revolution-43m-brits-now-use-e-cigarettes-but-350000-of-them-have-never-smoked-12684346 'Vaping revolution': 4.3m Brits now use e-cigarettes - but 350,000 of them have never smoked

[masurenguy] 29/8/2022 15:45

From The Times today.

"According to a new report from ASH, vaping has reached record levels in Britain with an estimated 4.3m people being active users, up from 800,000 a decade ago. This suggests that 8.3% of UK adults vape. About 2.4m are former smokers, 1.5m are current smokers and 350,000 have never smoked."

[taursus] 23/8/2022 16:08

The loss of the major client was already referred to in the 2021 accounts and was cited as one of the principal reasons for the drop in sales in the year to Feb 2021.

[dr biotech] 23/8/2022 15:59

The document also refers to the loss of their major client which chose to source from a mainland European manufacturer and a change in habits where vaper's use disposable devices rather than refilling with their liquids. For the money paid it looks decent, as long as the 60 or so staff arent a liability. Can't imagine they will all be taken on or the facilities kept open.

[taursus] 23/8/2022 14:34

Info on what Supreme paid for assets of Cuts Ice and Flavour Core is now available. It paid £1.05m for the intellectual property and about £1.5m for inventories and plant & machinery. 61 employees were transferred to Supreme Imports and it took a six-month licence on the two premises that Cuts Ice & Flavour Core occupy in London & Swindon.

Administrators’; report talks of Cuts Ice losing market share in 2021 and sales in 2022 suffering from European distributors running down excess inventory. So run-rate of sales is probably well below that of £11m shown in Cuts Ice last published account.

If these assets can eventually be integrated into Supreme’s Manchester operation, then could be very earnings accretive and a very cheap and low-risk way of acquiring additional sales, as with the Sci-MX deal.

[ali47fish] 22/8/2022 09:40

what is happening here share price down 9pc

[nw99] 19/8/2022 08:59

Good article on vape in Times plenty of take up good news

[cockerhoop] 17/8/2022 07:49

Administrator appointed 8th August, RNS 9th August.

[cockerhoop] 15/8/2022 16:46

Should reiterate it's Cuts Ice and not Supreme :-)

[petersingh550] 15/8/2022 16:23

Administrater appointed !

[topvest] 15/8/2022 14:48

Annual report now published.

[actscap] 12/8/2022 11:09

https://www.cutsice.com/Cuts Ice website has been updated to note the change in ownership.

[topvest] 10/8/2022 14:35

I would think it probably had gone into administration. Result = excellent low price asset deal for Supreme. No consideration price often disclosed when this happens, for obvious reasons. Anyway, this looks an excellent deal in my view. Much better to do this deal than pay a slightly higher dividend.

[danb45] 10/8/2022 09:01

probably because the information that they are in receivership doesn't seem to be in the public domain - the fact he finally comes out and states he works in the industry and was privy to a letter gives a lot of credibility, not sure why he didn't say this earlier yesterday ??

[masurenguy] 10/8/2022 08:15

Why is petersingh being accused of posting false information ? Yesterdays RNS did not announce the acquisition of these two companies. It clearly stated: Acquisition of trade and assets of Cuts Ice Limited and Flavour Core Limited and Sandy Chadha was also quoted: "We are delighted to be acquiring assets from Cuts Ice and Flavour Core".

[davidn67] 10/8/2022 07:30

You sound like a bitter competitor

[petersingh550] 09/8/2022 23:19

It’s not inside information it’s a fact
Ring cuts ice and ask them if they gone bust ? And who bought them I seen a letter to supplers explaining that it’s the case as I am in the industry

[topvest] 09/8/2022 21:09

They are buying the trade and assets which will flip straight into the Supreme vertically integrated model with minimal extra costs below gross margin. If the price hasn't been disclosed it is likely not that material. Rocket Science Holdings has large shareholder loans and may have been a bit underwater financially but that's irrelevant as they are buying the products and not the company. It looks a positive buy.