Report
Chris Wickham

Further positive surprises – growing well!

UPGS looks to end FY2019 on an extremely positive note. Its trading statement issued today indicates that sales revenue will be above both our own and market expectations. Moreover, profits (EBITDA and pre-tax) should also beat our estimates. With sales growth outperforming across the group, management strategy appears on track. After recent share price weakness, valuation metrics look supportive for the share price.

In terms of valuation, we remain firmly of the view that 100p is a reasonable near term share price. Based on our revised numbers that would imply 0.8x EV/sales and an undemanding 12.7x P/E ratio, dropping to a 12.0x P/E in FY2020.
Underlyings
UP Global Sourcing Holdings plc

UP Global Sourcing Holdings plc

Provider
Equity Development
Equity Development

​Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.

Analysts
Chris Wickham

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