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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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UP Global Sourcing - Sales jump 41%

October 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:
  • 76p
There was a strong update from UPGS, with group sales up almost 41% to £123.3m, a little ahead of expectations. Growth is said to be “good” across each of its four strategic pillars - Discounters, UK Supermarkets, Online Platforms and International Customers. EBITDA (cash profit) rose 53% to £9.9m and pretax profit 50% to £8.5m. Strong cash flow reduced net debt / EBITDA from 2.0x to 1.5x while borrowing headroom was £10.1m.Trading is in line with expectations with the order book moderately ahead of this time last year. Shore Capital nudges up eps forecasts a fraction to 8.43p for the year ended July 2020 (which assumes 5% sales growth) and its price target is 101p based on 10x operating profit a ...

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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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