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Supergroup

June 2011

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:
  • 1037p
The shares have fallen sharply after Supergroup’s Q4 trading update. Not that there was anything wrong with the figures themselves but with the shares at a hefty premium to the retail sector, comments that the hot weather in March and April left it with the wrong kind of stock in its stores (jumpers and jackets rather than T-shirts and shorts) didn’t go down well. But Supergroup says it now has the correct stock and despite the hiccough, profits are on track with forecasts unchanged. That implies it would have produced forecast busting figures had the weather not been unpredictably warm.The figures themselves were respectable enough. This showed that for Q4 total sales were up 61% to £66m, of which wholesale was up 89% to £3 ...

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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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