Source - Alliance News

Supreme PLC on Tuesday said that the second half of its current financial year started ‘very well’ as it reported a surge in first-half profit and hiked its dividend.

The Manchester-based consumer products manufacturer and supplier said in the six months to September 30, pretax profit nearly trebled to £12.3 million from £4.4 million a year prior. Revenue jumped 63% to £105.1 million from £64.6 million.

Supreme highlighted that revenue from its Branded division skyrocketed to £30.6 million from just £3.4 million a year prior, with Elfbar contributing £26.4 million, around 86%, to the just posted half-year revenue for the division. Supreme does not own or manufacture Elfbar but has an Elfbar distribution agreement. The company noted that ‘the addition of ElfBar has not notably changed the margin profile of the category’.

The company declared an interim dividend of 1.5 pence per share, up 88% from 0.8p a year ago.

Looking ahead, Supreme said its second half has ‘begun very well’, with growth reported across all divisions.

It now expects financial 2024 revenue to be between £210 and £225 million, which is up from March’s guidance of £195 to £205 million and at least 61% higher than £130.8 million in financial 2023.

Adjusted earnings before interest, tax, depreciation and amortisation are forecast between £32 to £35 million, compared to the prior range of £28 to £30 million and a jump of at least 52% from £21.1 million a year prior.

Supreme shares rose 13% to 124.33 pence each on Tuesday morning in London.

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