28 June 2018 – AGM statement
A trading update has been released to coincide with the company’s AGM. On the face of it this is very disappointing news with sales in the 25 weeks to 24 June down 30% on last year. A number of reasons are said to have caused this including ‘lengthy spells of cold weather and periods of heavy rain coupled with cautious national retailer buying and a lack of confidence in consumer spending’. It is clear that more recently weather in the UK has been exceptionally good and although not mentioned in the statement one would expect that this will help given the nature of the business. On a more positive note, agreement has been reached, subject to contract, with The Walt Disney Company to significantly expand the company’s portfolio of licenses for 2019 and 2020 to incorporate their major properties, including Disney, Marvel and Lucasfilm. At the current level we feel that the shares are undervalued and rate the shares as a BUY, although it should be noted that they are illiquid and often difficult to trade.