Supreme Plc Share Price (SUP)

SUP bought 2 businesses. Here's what I found on the 2nd acquisition:

1. Accounts also 28/2/21
2. Revenue £1.6m, PBT £0.67m (PAT £0.67m too - accumulated losses maybe?)
3. Net assets £0.84m
4. 6.66x valuation inc. assets would be £5.3m. NB 2020 profit was negligible so perhaps £5.3m is too high?
5. If it's correct this ties in with my estimate for Cuts Ice (bought for circa £16.7m + £5.3m for flavour core = £22m vs £25m borrowing facility headroom).
6. Virtually all sales were made to guess who? Yep Cuts Ice. There are loans and a common holding co entity (i.e. 2 companies 1 owner). Therefore I would disagree with the Equity D statement "they work solely on an OEM basis for the e-liquids industry"..... erm bit misleading, better to say they work almost exclusively with Cuts Ice. Maybe £30k on sales to other OEMs.
7. Lease liabilities 2-5 years in Swindon of £300k
8. Not much else to add but I would comment that it makes sense why they did 1 RNS for the 2 acquisitions. It's really all 1 thing when you look at it.

Nice to see we're back above £1 btw!

GLA

Additional factoids reading Equity D's 9th August article:
> Italy and Belgium are mentioned which weren't in the 2021 accounts.
> Equity D think European sales were majority of sales. Unless the mix has completely changed since Feb 2021 (last accounts) then this is incorrect i.e. majority were UK and not EU sales.
> The importance of having an ISO Class-7 cleanroom matches GMP (good manufacturing practice) industry standards, to meet vaping-related Tobacco Products Directive (TPD) and "other regulatory standards" (Agricore > Can't think what other standards these would be?).
> It begs the question of how SUP have managed without a cleanroom until now? It feels like this could unlock new markets and opportunities maybe? Particularly EU sales? TPD is an EU directive from 2014 which was incorporated into UK law: https://www.legislation.gov.uk/eudr/2014/40/contents
This gives a general overview and is relevant to SUP growing focus on vaping (e-cigarettes) but didn't contain anything that I could find to set out clean room standards or anything like that.
https://researchbriefings.files.parliament.uk/documents/CBP-8114/CBP-8114.pdf

That's about it. I'll cover Flavour Core separately.

It seems taking much longer to buy & sell on this script.
Friends any idea why!

Always worth hearing your thoughts.

Hi unhooked, I wrote my piece before reading equity’s new article so I agree with you on the new know how and other points you made. Have they bought 2 businesses? There’s a flavour business too isn’t there? Need to read it properly later