Reported Earnings • May 20
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down UK£31.9m from profit in 1H 2021). Profit margin: (down from 4.8% in 1H 2021). The decrease in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 28%, compared to a 10% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Price Target Changed • May 19
Price target decreased to UK£3.13 Down from UK£3.51, the current price target is an average from 6 analysts. New target price is 38% above last closing price of UK£2.27. Stock is down 54% over the past year. The company is forecast to post earnings per share of UK£0.058 for next year compared to UK£0.14 last year. Major Estimate Revision • Apr 29
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 consensus EPS estimate fell from UK£0.14 to UK£0.06. Revenue forecast reaffirmed at UK£1.65b. Net income forecast to grow 101% next year vs 19% growth forecast for Consumer Durables industry in the United Kingdom. Consensus price target down from UK£3.51 to UK£3.40. Share price was steady at UK£2.51 over the past week. Price Target Changed • Apr 27
Price target decreased to UK£3.51 Down from UK£3.94, the current price target is an average from 6 analysts. New target price is 41% above last closing price of UK£2.48. Stock is down 53% over the past year. The company is forecast to post earnings per share of UK£0.30 for next year compared to UK£0.14 last year. Price Target Changed • Apr 14
Price target decreased to UK£3.51 Down from UK£3.98, the current price target is an average from 6 analysts. New target price is 40% above last closing price of UK£2.50. Stock is down 54% over the past year. The company is forecast to post earnings per share of UK£0.31 for next year compared to UK£0.14 last year. Major Estimate Revision • Jan 20
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from UK£1.76b to UK£1.72b. EPS estimate also fell from UK£0.32 per share to UK£0.27 per share. Net income forecast to grow 105% next year vs 23% growth forecast for Consumer Durables industry in the United Kingdom. Consensus price target down from UK£5.26 to UK£4.53. Share price fell 3.7% to UK£3.15 over the past week. Price Target Changed • Jan 17
Price target decreased to UK£4.59 Down from UK£5.08, the current price target is an average from 6 analysts. New target price is 35% above last closing price of UK£3.39. Stock is down 20% over the past year. The company is forecast to post earnings per share of UK£0.30 for next year compared to UK£0.14 last year. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment deteriorated over the past week After last week's 28% share price decline to UK£3.25, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Consumer Durables industry in the United Kingdom. Total returns to shareholders of 6.4% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.91 per share. Recent Insider Transactions Derivative • Dec 23
Key Executive exercised options and sold UK£86k worth of stock On the 20th of December, Iain McPherson exercised options to acquire 21k shares at no cost and sold these for an average price of UK£4.18 per share. This trade did not impact their existing holding. For the year to September 2020, Iain's total compensation was 63% salary and 37% non-salary. Since March 2021, Iain has owned 232.32k shares directly. Company insiders have collectively bought UK£237k more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Dec 23
Key Executive recently bought UK£233k worth of stock On the 20th of December, Iain McPherson bought around 56k shares on-market at roughly UK£4.17 per share. This was the largest purchase by an insider in the last 3 months. This was Iain's only on-market trade for the last 12 months. Major Estimate Revision • Dec 10
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from UK£0.36 to UK£0.32 per share. Revenue forecast steady at UK£1.76b. Net income forecast to grow 124% next year vs 24% growth forecast for Consumer Durables industry in the United Kingdom. Consensus price target broadly unchanged at UK£5.08. Share price rose 5.5% to UK£4.59 over the past week. Recent Insider Transactions • Dec 03
Independent Non Executive Chairman recently bought UK£200k worth of stock On the 1st of December, John Martin bought around 47k shares on-market at roughly UK£4.21 per share. This was the largest purchase by an insider in the last 3 months. This was John's only on-market trade for the last 12 months. Reported Earnings • Dec 01
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: UK£0.14 (up from UK£0.008 loss in FY 2020). Revenue: UK£1.37b (up 54% from FY 2020). Net income: UK£72.3m (up UK£76.0m from FY 2020). Profit margin: 5.3% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) missed analyst estimates by 27%. Earnings per share (EPS) missed analyst estimates by 27%. Over the next year, revenue is forecast to grow 28%, compared to a 7.6% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Executive Departure • Dec 01
Group CFO & Executive Director Michael Scott has left the company On the 30th of November, Michael Scott's tenure as Group CFO & Executive Director ended after 3.2 years in the role. As of September 2021, Michael still personally held 94.58k shares (UK£478k worth at the time). A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 1.83 years, which is considered inexperienced in the Simply Wall St Risk Model. Reported Earnings • May 16
First half 2021 earnings released: EPS UK£0.061 (vs UK£0.081 in 1H 2020) The company reported a mediocre first half result with weaker earnings and profit margins, although revenues improved. First half 2021 results: Revenue: UK£661.0m (up 37% from 1H 2020). Net income: UK£31.9m (down 12% from 1H 2020). Profit margin: 4.8% (down from 7.6% in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Executive Departure • May 04
Independent Non-Executive Chairman David Howell has left the company On the 30th of April, David Howell's tenure as Independent Non-Executive Chairman ended after 5.4 years in the role. As of December 2020, David personally held 62.25k shares (UK£291k worth at the time). David is the only executive to leave the company over the last 12 months. Is New 90 Day High Low • Mar 01
New 90-day high: UK£4.85 The company is up 9.0% from its price of UK£4.44 on 01 December 2020. The British market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£18.13 per share. Price Target Changed • Jan 30
Price target raised to UK£4.67 Up from UK£4.30, the current price target is an average from 5 analysts. The new target price is 8.4% above the current share price of UK£4.31. As of last close, the stock is down 12% over the past year. Reported Earnings • Jan 14
Full year 2020 earnings released: UK£0.008 loss per share The company reported a poor full year result with weaker earnings, revenues and control over expenses. Full year 2020 results: Revenue: UK£892.0m (down 28% from FY 2019). Net loss: UK£3.70m (down 102% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Dec 24
New 90-day high: UK£4.68 The company is up 37% from its price of UK£3.41 on 25 September 2020. The British market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 35% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£14.83 per share. Recent Insider Transactions Derivative • Dec 23
Group Chief Executive & Director exercised options and sold UK£66k worth of stock On the 18th of December, Iain McPherson exercised options to acquire 15.19k shares at no cost and sold these for an average price of UK£4.37 per share. This trade did not impact their existing holding. Since March 2020, Iain's direct individual holding has decreased from 603.24k shares to 122.73k. Company insiders have collectively sold UK£3.1m more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Dec 15
Price target raised to UK£4.30 Up from UK£4.01, the current price target is an average from 6 analysts. The new target price is close to the current share price of UK£4.18. As of last close, the stock is down 12% over the past year. Reported Earnings • Dec 04
Full year 2020 earnings released: UK£0.008 loss per share The company reported a poor full year result with weaker earnings, revenues and control over expenses. Full year 2020 results: Revenue: UK£892.0m (down 28% from FY 2019). Net loss: UK£3.70m (down 102% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Dec 04
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.8%. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 58%, compared to a 12% growth forecast for the Consumer Durables industry in the United Kingdom. Valuation Update With 7 Day Price Move • Nov 10
Market bids up stock over the past week After last week's 23% share price gain to UK£4.05, the stock is trading at a trailing P/E ratio of 12.3x, up from the previous P/E ratio of 10.1x. This compares to an average P/E of 15x in the Consumer Durables industry in the United Kingdom. Total returns to shareholders over the past three years are 31%. Is New 90 Day High Low • Nov 05
New 90-day high: UK£3.67 The company is up 26% from its price of UK£2.92 on 06 August 2020. The British market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£23.45 per share. 