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Supergroup - Astonishing profit growth

April 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SGP
  • Price:
  • 546p
Supergroup (SGP; 546p), a retailer of youth fashion, looks like a spectacular retail growth story. The shares have just joined AIM this month following a placing, which has raised £125m (£15m new money for the company) to value Supergroup at £395m and was oversubscribed as investors have realised that profits are entering a phase of promising growth.  What differentiates Supergroup from most retailers is the astonishing growth it reported in the first half to end 31 October when it made a profit of £7.82m, exceeding the £7.59m in the whole of the previous 12 months - evidence enough of the remarkable progress the group is making - and providing sufficient confidence for the company ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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