£3021 Jun 2017 05:01
£30 might be conservative in the short/medium term.
- £30 would equate to c. £375m mcap. HC compares the potential of IDP to FEVR and cites the L'Oreal acquisition of IT cosmetics ($1,200m) and the acquisition of NYX cosmetics ($500m) - both valuations around 7-8 x top line revenue at the time of purchase. That considered, perhaps IDP may attain such a value with annual revenue near £40-50m, which may not be far off.
The success to date has been driven by SkinnyTan but consider the other brands - Body Glow, Charles + Lee, Stevie K, Prolong, Leimo. Rapid expansion and roll out in UK, US, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.
Consider the trading update and what wasn't included:
•ST Distribution deal with ASOS
•ST Distribution deal with London Beauty School
•Skin whitening product to 600 pharmacies in Korea
•ST Distribution deal with Boots IE - instantly upped to 65 stores due to customer demand and will expand to Boots UK .
•SkinnyTan has >200,000 unique customers, over 24,000 deliveries per month and growing.
•Cosmetic brand Stevie K which "is going to be quite significant".
1. Very large portfolio of scalable brands.
2. Excellent leveraging of social media & digital.
Clients growing by over 15,000 per month.
3. Growing vertically and horizontally. In 3 continents and about to go into 4.