Updates

Kitwave - Well set for 13th acquisition

August 2023

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.

Proving that a seemingly dowdy sector of food wholesaling can still provide an outstanding investment is Kitwave, with the shares spiking to 319p, a gain of 100% on our 159p buy price in June. This month’s strong first half outcome prompts the seventh upgrade since my write up. H1 revenues grew 23% (+17% organic) to £275m with each of the three divisions recording double-digit sales growth. Pretax profit grew 60% to £9.3m. Net debt was £33.5m reflecting the £19.6m acquisition of WestCountry last December. Gross margin has risen 1.8% to 21.6% and whilst there was inflationary pressure on wages and distribution costs, EBITDA rose by 44% to £16m, a margin of 5.8% (+0.8%). While commodity-led price inflation contribut ...

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Supreme - Accelerated trading in the first three months

Luceco - Results at top end of expectations

Kitwave - Biggest ever deal will unleash wave of synergies (October 2024)

Kitwave (December 2023)

Kitwave - Foodservice the swing factor (April 2023)

Kitwave FY23 - eps forecast upgraded by 13% (January 2023)

Kitwave - Foodservices side lifts margins (August 2022)

Kitwave (June 2021)

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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