Miton UK MicroCap Trust plc (LON:MINI) Co-Fund Manager Gervais Williams was asked his view on portfolio company Supreme plc (LON:SUP) in a recent wide ranging interview.
DirectorsTalk asked: Can we discuss some stocks that are performing well in this environment? First off, Supreme plc. They manufacture and distribute a range of products across batteries, lighting, vaping, sports nutrition and wellness, and branded household consumer goods. Now, vaping has grown tremendously and has become a more recreational product and everyone seems to be taking more vitamins too. What’s your views on the management team and the company’s positioning?
Gervais Williams commented:
“I think what’s impressive about many quoted companies, particularly some of the smaller quoted companies, is that they’ve got very commercial management teams and this is a very commercial team, in our view.
They’ve grown the business over the years organically, they’ve made some small acquisitions along the way but principally organically, and now running at around £30 million turnover. This implies these aren’t just tiny businesses, they are a significant business in their own right.
They’ve had some uneven trading over the year which has probably held the share price back but basically it’s extraordinarily cash generative and it’s in a position where it can pay dividends and grow dividends attractively over time. So, we believe it deserves a much higher valuation in time.”
Supreme is one of the UK’s leading battery and lighting distributors, and a leading name in the e-cigarette and vaping market.