Up Global Sourcing Share Discussion Threads

[mcbabs] 03/11/2021 12:55

Salter acquisition "The acquisition is now fully integrated and is expected to significantly enhance earnings in FY 22."Now a few things have been cleared up in regards to shipping and how much of an impact it has had on trading it's looking good for UPGS could see this going a lot higher.

[deanowls] 03/11/2021 04:21

They have 18m that will drop through with the salter purchase and 4m profit. Any easing in productdelivery will have them beat these figures easily I reckon.

[quepassa] 02/11/2021 20:25

Hey Thorpe,
Just saw your post.

You shouldn't put words into people's mouths and are quite wrong in stating that my reference was in any way to the good house of Equity Development which have done a great job on this share. I think you owe them an apology.

My reference to Mr. Analyst was slightly closer to home, to certain nameless posters on this bulletin board who have been analysing this share (technically) in recent times...


A great day for UPGS. With more to come.

ALL IMO. DYOR.
QP

[tole] 02/11/2021 18:44

https://www.fool.co.uk/2021/11/02/up-more-than-10-today-why-id-buy-shares-in-this-strong-performing-business-right-now/Up more than 10% today: why I'd buy shares in this strong-performing business right nowKevin Godbold | Tuesday, 2nd November, 2021 | More on: UPGSChart displaying growth Image source: Getty Images.A year ago, I wrote with enthusiasm about the merits of UK stock UP Global Sourcing (LSE: UPGS). Back then, I liked the modest valuation, strong balance sheet, and robust-looking forward prospects of the business. The share price then was around 94.5p.Robust business growthToday's full-year results report has propelled the stock more than 10% higher in one day. And it now sits around 195p. But, sadly, I didn't buy any of the shares for my portfolio! However, I'm still excited about this one. And I'd describe today's figures as robust.The company owns, manages, designs, and develops several well-known brands focused on the home. And it sells to more than 300 multichannel retailers in 38 countries. The brands include names such as Beldray, Intempo, Salter, Progress, Kleeneze, and Petra.And the strategy of focusing on mass-market, "value-led" consumer goods for the home has been working well. For example, in the year to 31 July, revenue climbed by almost 18% compared to the prior year. And underlying earnings per share shot higher by just over 34%.The directors pushed up the total dividend for the year by nearly 27%. And over the past few years, strong dividend growth has been a feature of the firm's financial record.I see the progress of the dividend as an indicator of the strength of the growth proposition. When companies raise dividends by hefty percentages, I reckon it underlines the directors' satisfaction with the progress of a business. And it also demonstrates their willingness to involve shareholders in the company's success.A favourable marketLooking ahead, chief executive Simon Showman reckons the pandemic has created favourable changes in consumer behaviour. For example, he thinks more people will be working and cooking at home. And there's now a "greater emphasis" on hygiene. But on top of those things, the rising cost of living will likely encourage "a more considered approach to spending."Showman reckons such changes will likely endure, creating an attractive ongoing market for the company's value-driven sales approach. And the directors are "confident" about the long-term prospects of the business. Meanwhile, City analysts have pencilled in a rise in earnings of almost 33% for the current trading year to July 2022. And they expect a hike in the dividend worth around 39%. Of course, all forecasts can change based on future developments and should not be relied on. Set against those forward-looking expectations, the price-to-earnings multiple is running just under 14. The anticipated dividend yield is a little below 3.6%. The valuation is a little higher than I found it a year ago, but not much. And that's because of the strong progress with earnings, cash flow, and the dividend.But one risk is that consumer habits could return to previous patterns as the pandemic fades. If that happens, the surge in growth of the business could prove to be unsustainable. And it's possible for the company's valuation to contract if earnings slip in the years ahead, causing me to lose money on my investment. Another risk is the ongoing supply-chain crisis faced by companies engaged in import/export businesses. Nevertheless, I'm inclined to buy some of the shares now to hold as the growth story unfolds in the years ahead.

[robbnw] 02/11/2021 12:54

Totally agree i have not sold a single share recently . Superb hold

[ramellous] 02/11/2021 11:43

I’ve held these since 2018 and 45p through the ups and downs. Bought for income at the time and loving the growth. Was up over 400% a few weeks ago and should be well over that soon enough.

[investing2retire] 02/11/2021 11:27

broker note is good news. i bought back in this morning after hitting my stop loss a few weeks back for a 10% loss. i previously made good profits and almost dpubling before that selling at 230p on the big rise earlier in the year and once 200p is cleared should move back up to those levels.

[firtashia] 02/11/2021 11:22

Yeah that's the guy, Thorpematt, Mr Market. As far as I know there weren't any analyst downgrades recently which could have prompted the sell off, so the sell off was driven purely by sentiment, people expecting a profit warning due to logistical issues when there was no evidence to suggest logistical issues were a significant problem. Don't get me wrong, sometimes Mr Market is right and sometimes he is not; my point being that he offers no consistently clear insight that we should thoughtlessly take instruction from every single time.

[deanowls] 02/11/2021 11:12

Is there a presentation today?

[thorpematt] 02/11/2021 10:43

QuePassa,

Surely Mr. Market is the manic depressive as described by Mr Graham in his excellent book?



He was selling...and is now buying.... I guess?

-----

Mr. Analyst (Andy at Equity Deveopment) is doing a fine job as far as I can tell. I will read his latest effort later.

And then Mr.Showman is the CEO who has every right to live up to his name (but appears somewhat more down to earth).

What a lot of Mr. Men there are?

[dr biotech] 02/11/2021 10:17

Unfortunate for me I added on the first dip at 192. Still not too far away.

[quepassa] 02/11/2021 09:53

Surely Mr. Market was right!

He's the one who says buy on market price dips and market price weakness!!

Anyone who did, has done very well.


I think it was Mr. Analyst who (again) is the one who got it wrong.

[firtashia] 02/11/2021 09:26

As with SUR a couple of weeks ago, always nice to see Mr Market proven wrong.

[dope007] 02/11/2021 09:03

Great results

[edmonda] 02/11/2021 08:04

UPGS’s combination of strong brands, targeted distribution channels and demonstrable success in M&A augurs well for sustainable growth. Moreover, the company’s track record in coping with disruptions associated with Covid19 should give investors confidence in senior management’s ability to handle any ongoing logistics problems associated with both international shipping and domestic haulage. Supermarkets and Online Channels continue to grow most quickly with advances of and 32.3% and 23.2% respectively in FY2021.

UPGS financial strength underpins our confidence in the company’s ability to continue to pay out dividends at a 50% pay-out ratio – i.e. a twice covered basis. Dividend yield is a salient valuation advantage of UPGS relative to its peers. Moreover, even at our fair value price of 275p, the company would not be rated out of line with peers on key EV/sales, EV/EBITDA and P/E measures.

[quepassa] 02/11/2021 07:56

Fantastic figures.

Revenues + 18%

Dividend + 27%

EBITDA + 28%


Confident Outlook.

Good head-room covers increased debt. Revenues from acquisitions (which took place near year-end) will flow in the new financial year.

Down to earth explanations about tight supply chains which UPGS -alongside the rest of the market- are experiencing.


A year of significant corporate growth and expansion through significantly increasing multi-channel sales and astute acquisition.


ALL IMO. DYOR.
QP

[dr biotech] 02/11/2021 07:35

Outlook is always key ans they are expecting growth next year. Shipping and other logistical issues seem under control. I like the bit about being a responsible UK tax payer too.

[ramellous] 02/11/2021 07:29

Good increase in divi too. So looking at 3.33p final dividend in Dec.

[johnrxx99] 02/11/2021 07:18

Results appear to have hit average consensus spot on. Well done UPGS and hope the shipping issues sort themselves out early in 2022.

[thompsonminor] 29/10/2021 11:41

Tomps2 Thanks for the link. Just listened to Mark Bentley who makes a good, positive pitch for UPGS. I echo everything he says; this is a solid business, managed well, and delivering not just growth but also good margins. Like so many other importers, UPGS is having to deal with hugely inflated shipping costs but - as was mentioned on the Stockslam - they have a good record of maintaining margins, and this year's full acquisitiion of Salter is a gold-plated long-term investment. I've held for over 18 months and have done well here. I look forward to next week's Results presentation with some trepidation because the current market seems to be very intolerant of any sort of headwinds, even though they've been flagged up well in advance.

[tomps2] 29/10/2021 08:35

Mark Bentley ‘slams’ UP Global Sourcing (UPGS) at 23m30s in the latest PIWORLD/Stockopedia Stockslam

Watch the video here:

Or listen to the podcast here:

[deanowls] 19/10/2021 15:08

It’s worth listening to the loadster podcast this week. Really interesting and highlights the issues.

[dope007] 18/10/2021 13:05

The supply chain is struggling. Demand has sent lead times out to over 6 months on certain pigments. A big issue is China shutting down factories due to energy issues. for example a chemical we buy comes from 2 factories in china. One was closed until xmas last month. This is being repeated across the supply chain