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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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UP Global Sourcing - Eps enhancing acquisition

August 2021

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:
  • 211p
Since 2011 Ultimate Products has licensed the Salter brand for the sale of kitchen electrical and cookware products (not including Salter scales) and in a variation of Victor Kyam’s “I like the Remington razor blade so much I bought the company” it has announced the acquisition of Salter Brands for an initial £32m. The deal is funded by a placing at 210p, which raised £15m gross and a new £10m term loan with HSBC.For FY’22, UPGS anticipates the business will see sales of c. £16.7m, EBITDA of at least £4.6m and pretax profit of at least £4.0m, implying EV/ EBITDA multiple of 7.4 and PE ratio of 10.6x and is expected to be significantly eps enhancing in FY’22.  ...

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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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