UP Global Sourcing Holdings plc
Established in 1997, UPGS has evolved from a local business into a global success. They develop new, innovative concepts and bring professional, sought-after products to the mass market. Their offices span two continents, with headquarters in the UK, Hong Kong, Guangzhou, and Belgium.
UPGS Webinar discussion of their Interim Results
If you missed our live webinar with Andy Gossage, Managing Director of UPGS, you can watch the recording here.
Andy discusses the impact COVID-19 has had on the business, how they have responded, and what opportunities might arise from both an increase in online sales, and a relentless focus on good execution for all their clients.
We begin with a presentation, or you can jump straight to Q&A at 23mins.Download Now
Benefits of underlying strengths
UPGS’s interim results included a number of positive outcomes for underlying sales growth, profits and free cash flow in the half. Despite some Covid-19 related setbacks since then, UPGS appears well placed to emerge positively from the current pandemic crisis. In particular, the business benefited from underlying strengths built up over time. Moreover, we welcome the greater importance of UPGS’s online pillar in a post Covid-19 environment.
This year will see a sharp reduction in both sales revenue and profits, clearly. However, a significant portion of that expected decrease appears to have been reflected in the company’s share price decline – a 43% drop in the calendar year to date. Company guidance has been suspended for FY2021 and is currently of the order of £93m of sales revenue for FY2020.
On that marked-down basis the FY2020 EV/sales ratio would be only 0.6x. Listen to, and read, what our analyst Chris Wickham thinks: