Unbound Group (UBG): Initiation - A platform fo...

Edison Investment Research Limited Unbound Group (UBG): Initiation - A platform for growth 07-Feb-2022 / 08:48 GMT/BST London, UK, 7 February 2022 Unbound Group (UBG): Initiation - A platform for growth Unbound Group's aim is to capitalise on the strengths of and customer loyalty to the current core trading business, Hotter Shoes, a digitally led retailer, by developing a curated multi-brand retail platform, 'Unbound'. The platform will offer a broader range of new and complementary own-brand and third-party products and services, via partnerships with relevant brands, in order to enhance the company's addressable market. The company's core target demographic, people aged 55+, is the wealthiest, has the highest level of disposable income and is expected to be the fastest growing of any age group as the population ages, providing a favourable tailwind to management's ambitions. Our DCF-based valuation, which excludes any potential new revenues from the new digital partnerships, suggests an equity valuation of £70m or 165p per share. Despite our estimates for higher growth in revenue and operating profit versus the UK online and small-cap retail peers, the P/E multiples for FY23e and FY24e of 15.0x and 6.9x are at a discount to the UK online retailers in both years (21.4x and 18.4x) and a discount to the UK small-cap retailers in FY24e (8.5x).  Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Russell Pointon [phone] [e-mail] Richard Finch [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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