Bonmarche Holdings (BON)

Bonmarche Holdings BON Logo

One of the UK’s largest women’s value retailers.

20-Nov-2017 – 89p – £44.5m – PER 6.19

Interim Results For The 6 Months To End September 2017 – Revenue up 5% (£97.8m (FY17 H1: £93.1m), LFL sales growth 4.3% (store-only LFL sales up 1.6%, online sales up 38.6%), in-line with Board expectations – PBT £4.2m (FY17 H1: £2.0m). Net cash of £14.9m (FY17 H1: £9.8m), Dividend flat at 2.5p per share.

With so much cash on the books now, that 8% Dividend is starting to look attractive here.

19-Jan-2018 – 128.1p – £64.1m – PER 8.63

Trading Update For The 13 and 39 Week Periods To 30-Dec-2017 – Sales for the 13 weeks down 5.5% LFL, sales for the 39 weeks up 0.9% LFL. On-line up 28% and 35.5% respectively. High street is challenging but pleased with on-line growth. Expect full year to still be in-line with previous expectations.

I don’t think this is particularly good news and for me I only see this as attractive sub 100p.

20-Apr-2018 – 92.9p – £46.5m – PER 6.19

Trading Update For The 12 Months To End March 2018 – FY Revenue down slightly, Gross Margin resilient and PBT to be in-line – That looks like a whopping 40% or so increase on 2017 but stillbelow 2015 and 2016. On-line strong, Stores disappointing. Market to remain difficult but expects to drive further progress this year. No mention of the Dividend.

Doesn’t look too bad to me. If there was a positive update on the Dividend I would have been tempted – For now I will remain Neutral.

26-Jul-2018 – 110p – £55.0m – PER 7.21

Trading Update For The 13 Weeks To End June 2018 – LFL Sales up 2.7% (on-line is up 27.3%), FY remains unchanged. Note, the Dividend policy is changed from cover between 2.5x to 3.0x earnings to between 2.0x to 2.5x earnings.

Not sure how this Dividend policy change will go down, I am guessing it will be considered as confirmation that a decent 5% or so yield will still be on offer here and the board is taking a sensible step – For now I remain Neutral.

27-Sep-2018 – 103p – £51.5m – PER 6.64

Trading Update – On-line sales in-line, stores below expectations – Revised Underlying PBT for FY 2019 £5.5m (I think £8m, same as last year was expected, not sure (seems FX is partly to blame)). Total 2019 FY Dividend to be the same as last year, 7.75p.

Mixed bag here but still a decent yield. However, it’s tough (for me) to work out the potential capital loss/gain – I remain Neutral.

20-Nov-2018 – 81.4p – £40.7m – PER 8.27

Interim Results For The 6 Months To The 29th September 2018 – Revenue in-line with last year, LFL sales down -1%, on-line up 28.9% (12% of total sales (9% last year)). Profit and Net Cash are both down – The Interim Dividend is unchanged. FY to be in-line IF Black Friday and Christmas go well.

Still a mixed bag here but still a decent yield. Still a tough call to get involved especially if Black Friday and Christmas do not deliver – I remain Neutral.

13-Dec-2018 – 80.5p – £40.3m – PER 8.35

Trading Update – Black Friday blamed, Brexit blamed, sales down – Will not recover until end of March 2019. PBT to be break-even at best up a loss of -£4m. Cautions on progressive dividend policy even though says it has enough cash to see it through (for now).

The last update stated “FY to be in-line IF Black Friday and Christmas go well”, I commented “a decent yield… Still a tough call to get involved especially if Black Friday and Christmas do not deliver”. Caution pays sometimes!

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