Source - Alliance News

Supreme PLC on Tuesday reported a double-digit annual profit rise but warned over revenue and earnings in the financial year ahead due to customer overstocking.

Shares were down 29% at 89.55 pence each on Tuesday morning in London.

For the year ended on March 31, the Manchester-based battery and lighting distributor posted a widened pretax profit of £16.3 million, up 25% from £13.0 million a year ago. Revenue climbed 7% to £130.8 million from £122.3 million.

Supreme said revenue growth has been underpinned by customer momentum and ‘earnings enhancing acquisitions.’

Chief Executive Officer Sandy Chadha said: ‘We are delighted to have delivered another strong financial performance across FY22, driven by excellent customer traction, alongside completing two strategic acquisitions.

During the period, Supreme bought batteries and lighting products distributor Vendek Ltd and the stock and brands of Sci-MX Ltd, which is a sports nutrition and supplements business.

It said its balance sheet remains strong with net assets of £32.3 million, compared to £18.8 million in the previous year.

Supreme declared a total dividend of 6.0 pence per share.

While expecting ’another solid, profitable year‘ for its recently commenced financial year, Supreme warned both revenue and earnings before interest, tax, depreciation and amortisation will be below financial 2022 levels as well as previous market expectations.

‘Overstocking across a number of key customers within the group’s Lighting category will result in lower-than-expected revenue and Ebitda generation for the current financial year,’ the company said.

In the longer term, the group remains focused on driving organic growth, closely balanced with strategic acquisitions.

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