We are delighted to have advised Supreme plc as they list on AIM.
Supreme plc (“Supreme”) is a leading manufacturer, licensee, brand owner and distributor of fast-moving consumer goods (fmcg). The business is run from its Manchester headquarters, which is also its distribution centre.
The company has developed its own vaping brand, 88Vape, and has a portfolio of sports nutrition and wellness brands including Battle Snacks as well as servicing the lighting and battery markets with distribution and licensing arrangements for brands including Duracell, Panasonic, Energizer and JCB. Supreme supplies the discount retail, wholesale, independent retail, supermarkets, and export sectors.
The IPO further raised the company's profile and provides a platform for growth for Supreme to continue to diversify its product offering and build in its chosen market segments.
The IPO also provides Supreme's CEO (and 100% shareholder), who took over the company in 2003 having been involved with the business since his father established it in 1975, with the opportunity to realise a portion of his shareholding and diversify some of his wealth.
Supreme was admitted to AIM in Feb 2021 with a market capitalisation of £156m. It raised total funds of £67.5m, of which £60m went to the owner. In the first 12 months post-IPO its EBITDA increased 21% and the share price is up 49%, giving a market capitalisation of £233m. Analysts have upgraded forecasts twice since IPO and the current 12-month target price is 240p implying a market capitalisation of £282m. The CEO’s remaining stake is currently worth £133m, forecast to reach £161m at the 12-month target price.
Starting a process during 2020 and launching an IPO on AIM at the start of 2021 is a clear demonstration of the team’s agility and ability to provide a market leading service remotely, and to offer independent regulatory advice and transaction support in a changing environment.
We recognised that Supreme is a fast-growing business which has identified growth segments and new markets in which to innovate, and we have assisted in setting up a supportive environment for this entrepreneurial business on the public market.
Timeline of events
February 2021
- Admission to AIM
- Revenue £122m
- EBITA £19m
- Owner sells 43% of their pre-placing shareholding for £60m
- Strong institutional support
- Share price up on day one
- Owner’s retains interest in 57% of shares at IPO valued at £88.9m
August 2021
- Full year results announced
- Revenue up 33%
- EBITDA up 21%
- New contracts with McColl’s and Scottish Prisons
- Expanded sports nutrition offering
December 2021
- Interim results announced
- Revenue up 9%
- EBITDA up 21%
- Focus on own brand products to drive margins
- New contract with Sainsbury’s
- New product launch
- Two acquisitions
- Maiden dividend declared
February 2022
- Owner holds 57% of the issued share capital representing a value of £132.8m
