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  • Writer's pictureMark Watson-Mitchell

N Brown Group – 5.8 times current year and just 4.4 times prospective earnings

The Manchester-based digital retailer of clothing and footwear for the plus size and over 50’s markets, N Brown Group (LON:BWNG) includes in its brands: JD Williams, Ambrose Wilson, Simply Be, Home Essentials and Jacamo.

Who hasn’t noticed their adverts littering our daily press?

Next week it will show just how well it has been doing during the Covid-19 lockdown for its first half of the current trading year, the six months to 29 August.

Analyst estimates for the current year to end February 2021, suggest that although the group may well have suffered a sales fallback from £858m last year to just £724m for this current year, it could well have only seen a slight easing in pre-tax profits from £35.7m last time to an impressive £33.9m in this period, worth 9.4p in earnings per share.

For the next year, the benefits of the overall group restructuring begin to show, with estimates of sales up to £767m and pre-tax profits leaping to £45.7m, worth 12.3p per share in earnings.

The group’s shares rose to 66p earlier this week before the market fall brought them down to just 55p now.

The interim results, which are due to be announced on Thursday 5 November, could provide some fireworks on their own.

These shares, now on just 5.8 times current year earnings and only on a mere 4.4 times prospective look amazingly undervalued.

(Profile 06.07.20 @ 36.15p set a Target Price of 50p*)


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