Nothing on here is investment advice. Do your own due dilligence.
Supreme plc Update
Supreme put out an update that their FY23/24 (ending March 31st 2024) revenue should be at least £225m with (adj.) EBITDA of at least £38m representing a 16.9% margin. Next to their pretty attractive dividend, Supreme also announced a £1.0m share buyback programme to be conducted in Q4 2023/24. To be fair, the buyback is rather small but nonetheless nice to have. This compares to a £137m market cap with no debt.
Currently, about £75m in revenues and £9m in (adj.) EBITDA are contributed by the disposible vaping segment. I suspect we will see a very strong FY24/25 as people will stock up before the ban takes effect. Afterwards, I suspect we will see a decent conversion rate from disposables to also very cheap and easy to use reusable vapes. These reusable vaping systems are actively promoted by the UK government to get people away from traditional tobacco products.
For roughly 3.6x EV/EBITDA you are getting a defensive, fast-growing business with a shareholder-aligned, amazing capital allocator at the helm. If I had more cash available, I would love to add more shares at these prices.
Various Updates
I sold my position in Onlineformapro SA with a nice 50% gain. It had become my smallest position. There is basically no information available about the business. I took a small position because the valuation seemed incredible attractive but now decided to realize my gains. I am now down to 7 positions in my portfolio with the top 3 representing about 60%.
My two investments within the CSI universe are firing on all cylinders. Sygnity closed its 2nd aqcuisition and Bravura Solutions is performing wonderfully as well.
itim Group plc has also finally started to rerate but is still cheap at these levels for a almost fully recurring VMS (<1xEV/Recurring).
Going forward, I will post irregular updates instead of monthly updates whenever something interested crosses my mind.
Dividends
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Current portfolio overview (by size of position):
Sygnity SA
Bravura Solutions
Supreme plc
itim Group plc
SUTL Enterprise
Cab Payments
Datalab Tehnologije