I’ve recently been going over Innovaderma (LON:IDP) a share I’ve held on and off this year, so thought I’d share my research with Stockopedia users. I currently hold it and topped up recently after it fell nearly 50% from its high earlier in the year. Graham Neary has also written about it a few times and it was Graham that originally flagged it to me. My view is that it’s a good GARP (growth at a reasonable price) share and that there is potential for its Roots product, and further expansion of Skinny Tan in Europe and the US, to also act as a catalyst for the share price to rise.

I would love to hear readers' views, especially on anything I have missed.

ABOUT THE COMPANY

Innovaderma is an Australian founded company, although manufacturing is based in the UK, specialising in beauty treatments. It primarily operates in the UK, US, Australia, New Zealand, Philippines, and South Africa. The company was setup in 2013 so it is young. The market cap is small here at £29.6m and because the founder holds a large number of shares it can be quite difficult to trade with some retail trading platforms not offering it at all. I trade it through IG.

One of the chief attractions is its fast growth. In the year ending 30 June, its revenue grew by 106% and gross profit 125.5%.

Products

The company has a number of products, the most prolific of which is Skinny Tan. This was a product acquired by the company, rather than developed fully in-house, after it was showcased on Dragon’s Den. The women who launched the product now work for Innovaderma. Sales of this product have been growing very quickly and this excitment has driven the share price during the 2017 bull market. The company describes the product as ‘the first self-tanner that combines a natural tanning active with naturally derive skin smoothing actives to tan, contour and reduce the visible appearance of cellulite’. Benefits of the product supposedly include that it looks better than other tanning products, has fewer (if any) visible streaks, and does not smell as bad.

Online reviews of Skinny Tan are mixed although websites like Amazon have a small number of reviewers so it needs to be treated cautiously. Women I’ve asked who…

Finish reading with a 14 day trial

or Unlock with your email

Already have an account?
Login here