Bonmarche Holdings (LON:BON)

Share Price £1.27 (Down 1.2% today)  Bid/ Offer  (1.26 - 1.35)

Market Capitalisation £64.5 million

Original article was published on 10th June 2016.  Readers can read my original personal notes on the company and how my views continued or changed as the months moved on.   

*My updated views 21st January 2017 


*My updated views 28th September 2016 


*My updated views 21st July 2016 


About the Company

Sells clothes to mature women in a niche section of the fashion market through its 292 stores and concessions.  The company has a small on-line sales presence amounting to 7.9% of total sales. The company in recent years introduced a limited mens' section as a trial in a number of shops.  Research had shown them that 80% of female partners would like to buy for their partners. Hmm! The company produces its own mail order magazines to promote its products to its customers.  The company promotes designers David Emanuel and Ann Harvey in shop and on-line to give that exclusivity.  

“Bonmarché is one of the UK's largest women's value retailers, focused on selling stylish,
affordable, premium quality clothing and accessories in a wide range of sizes, via its own store portfolio, website, mail order catalogues and through the Ideal World TV shopping channel. Established in 1982, Bonmarché has more than 30 years of experience in this growing market segment, operating across the UK”.

The company moved from AIM to a full listing last year in October 2015.  A couple of recent profit warnings will see CEO Beth Butterwick depart. This is Beth Butterwick’s final report as CEO.  The new CEO will be Helen Connolly who seems well qualified having worked with ASDA responsible for purchasing for the ASDA brand George.

Financial Highlights:

 ·      Total revenue up 5.3% at £188.0m (FY15: £178.6m)

·      Store like-for-like sales up 0.7% and online sales up 3.6%

·      In line with revised expectations, PBT at £9.6m (FY15: £12.4m)

      and pre-exceptionalPBT of £10.6m (FY15: £12.4m)

·      Underlying basic EPS of 18.3p (FY15: 20.7p)

·      Strong cash flow - cash generated from operating activities £10.5m (FY15: £11.1m)

·      Recommend final dividend of 4.64 pence per share, bringing the total dividend for the            year to 7.14 pence per share, up 5.0% (FY15: 6.8p)

The share price has fallen from above £3.00 down to…

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