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UP Global Sourcing

May 2019

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:
  • UPGS
  • Price:
  • 71p
UPGS jumped to a 52-week high after a strong H1 in the light of which brokers upgraded for the fourth time since November. Sales grew 36% to £65.8m with the business firing on all sides - International Retailers (sales +173%), Online (+85%), Discounters (+35%) and UK Supermarkets (+32%). Pretax profit was up 47% to £5.95m with eps also ahead at 5.8p. Gross margin was 22.4% and ebit margin went to 10%. The positive margin surprise has caused Shore Capital to upgrade its forecast pretax profit to £7.5m and eps to 7.2p.  UPGS seems to be singing from the same hymn sheet as Luceco. There’s scope to top £1;  keep buying. ...

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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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