6th Aug 2021

Creightons -Emma Hardie Acquisition.

Creightons (LON:CRL) released a video on the Emma Hardie acquisition. The link is provided below.

https://bit.ly/CRL_EmmaHardie_acquisition

The main takeaways I took is that,

  • Emma Hardie, with cost and market synergies, should see sales of £5M with £1M EBITDA in the near term, with plenty of growth for the future also. It feels like a well-thought acquisition by a team that understands the market and opportunity very well.
  • Significant confidence in reach £100M top-line revenue by 2024/25, £30M organic growth, £20M M&A, and margins to improve with top-line growth.

Without knowing the specifics of the Emma Hardie business it is difficult to know if a fair price is paid. I am assured, Creightons (LON:CRL) has brought a business with excellent growth, high margins, and access to new distributions channels, with Creightons (LON:CRL) have the resources to make the most of the opportunities available.

As always DYOR, watch the video and comes to your own conclusion.

BSV


21st JUL 2021

Creightons - 10 years of growth at an average of 14% is it time to rerate as a growth stock?

Creightons (LON:CRL) hit a year low of 29p in Mar 2020 can Creightons (LON:CRL) 10-bag again? (lowest buy 30p, additional buy 57p). (I hold a long position).

The Company release full-year results which made excellent reading, even with Covid-19 and Brexit related costs and impact. https://www.stockopedia.com/sh....

The Result highlights include.

  • Revenue increased by 28.9% to £61.6m (2020: £47.8m).
  • Operating profit increased by 43.7% to £5.4m (2020: £3.8m).
  • Operating profit margin of 8.8% (2020: 7.9%).

The Company will present results on the 28th of July. To register for the presentation please follow the link: https://bit.ly/CRL_FY21_results_webinar28721

A significant part of the increase in growth was driven by Hygiene Related product delivered sales with sales of £14.6m. Some of this will not be repeatable for 2022. Expecting limited growth for 2022 and margins to improve as £1..6M covid costs are likely not to be repeated, I rate this as one of the best growth stocks in the market, deserving a much higher rating.

Sales Estimate 2022-2026

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My valuation model suggests plenty of upsides. (see below)

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A PE ratio of 20-24 seems close to fair value for…

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