Bargain price for UBG2 Feb 2023 16:06
market cap £3 million .
If you read the last trading update
Future 2023
Despite the short-term challenges experienced, the Group is well positioned for an enhanced Spring / Summer product portfolio launch supported by well-balanced inventory levels. Following the success of recent sourcing trials, we will be introducing incremental new product styles, including a new range of athleisure products.
More Partners in 2023
The Unbound Group currently has 11 partner brands that have gone live over the past five months. We anticipate signing further partnerships in 2023 and still see significant scope for growth and complementary brand diversification over the medium term. However, given the current consumer backdrop the partnership model has had a slow start to trading, as management has focused attention on its core Hotter brand.
Cost cutting 2023
As highlighted previously, to optimise the Group's trading performance in the current challenging economic and market conditions, focus will remain on managing costs, protecting margins and cashflow, ensuring that appropriate levels of working capital are maintained and managing capital investment tightly. In line with strategy, annualised cost savings of approximately £2.3m have already been identified within the Group's existing operating model, with £1.3m being realised across the final quarter of the current financial year and into the first quarter of the next financial year. A further £1m will be realised across Q2 and Q3 of FY24.
The cost reduction activity outlined above is intended to underpin a return to pre-IFRS16 EBITDA profitability during the next financial year. Furthermore, the Board has accelerated its planned review of the operating structure of the Group. This is focused on streamlining activities and simplifying processes in order to drive growth of revenue and profits.
Director now buying shares RNS at 4pm today ,this company is definitely a takeover target or will get a large rerate as trading continues with new partners joining/ cost cutting/ reduced problems on delivery Christmas 2023 .
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