Supreme remains on course in maiden year on AIM

Sandy Chadha
X The Business Desk

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Stretford-based Supreme, manufacturer, supplier, and brand owner of fast-moving consumer products, says it is performing to forecast, and sees no issues with supply chain or labour shortages.

The group, headed by chief executive Sandy Chadha, who led its admission to AIM in February this year, has provided a trading update for the six months ended September 30, 2021, this morning.

It said the board is pleased with the strong performance of the group in the first half of the financial year and remains confident in achieving expectations for the full year.

Positive momentum in the vaping division has continued alongside particularly strong growth in the sports nutrition and wellness category.

Lighting has benefitted from some brought forward sales in addition to the expected organic growth and batteries continues to be a defensive and predictable profit contributor for the group.

As manufacturing in Supreme’s key vaping and sports nutrition categories is in-house, the group has been relatively unaffected by global supply chain issues affecting other areas of the economy.

In addition, active management in the group’s batteries and lighting divisions has also largely insulated Supreme from these issues.

Management said it remains cognisant of supply chain and labour constraints but is confident of being able to manage these risks in line with the growth the group is delivering.

Integration of Sci-Mx and Vendek was completed in the period and both are progressing well and management remains confident in the prospects for these businesses.

Overall, group margins have been particularly strong with significant year-on-year growth in profitability.

While it is too early to draw conclusions about the full year, the board said it is pleased with the performance of the group and looks ahead with confidence.

Supreme will report its interim results for the six months to September 30, on Tuesday, December 7, 2021.