UP Global Sourcing Holdings plc

https://www.upgs.com/ TICKER: UPGS     EXCHANGE: AIM

Established in 1997, UPGS has evolved from a local business into a global success. They develop new, innovative concepts and bring professional, sought-after products to the mass market. Their offices span two continents, with headquarters in the UK, Hong Kong, Guangzhou, and Belgium.

LATEST REPORTS

 
UP Global Sourcing initiation summarised by analyst Chris Wickham
Published: Oct 04 2018

Equity Development analyst, Chris Wickham, discusses the business opportunities, the strength of its core brands, and why international expansion provides the necessary diversity to its growth platform.
 
Ultimately, there is Growth
Published: Oct 02 2018

Ultimate Products Global Sourcing Holdings PLC (UPGS) looks well placed to return to growth. UPGS enjoys a combination of well-known household brands, a proprietary approach to managing those brands, and significant growth headroom within its distribution channels. Moreover, after a challenging H1, sales trends improved in FY2018 H2. With a strong management team and, arguably, an attractive valuation, the shares should attract investors’ attention. 

UPGS is a consumer goods company with a robust portfolio of household durable goods brands. Its premier offering includes Beldray, Salter, Russell Hobbs, Intempo and Progress. Uniquely, the company offers these brands at attractive prices and in categories which expand the overall footprint of the brand names. 
In our view, UPGS’s brand management approach positions these key names for growth but in a way which will generate shareholder value. UPGS’s portfolio should experience what we refer to as mature market volume growth, which is arguably the strongest driver of value creation in the UK consumer goods sector. Overall management quality tends to be confirmed by clear vision and smart strategic positioning.
Given the UK retail climate at the moment, it is challenging to set a precise value on the shares. But to give some guidance we look at our revenue estimate for FY2019 and, even applying a conservative 1x EV/sales multiple, come out with a share price of £1 per share. 

Furthermore, we are encouraged by the resilience that UPGS has shown in these challenging times when others have floundered. We highlight the strength of their balance sheet, as well as their ability to adapt quickly to external challenges - e.g. by focusing on international and online opportunities.

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