Supreme reports solid start to financial year

(Sharecast News) - Supreme said in an update on Thursday that it has made a solid start to its current financial year and expects full-year trading to be in line with market expectations, as it continued to expand through acquisitions and navigate regulatory changes in the UK vaping market.

Chairman Paul McDonald told shareholders at the company's annual general meeting that Supreme delivered "strong results" in the year ended 31 March, achieving topline growth while maintaining "a prudent balance sheet" and laying the groundwork for its long-term objectives.

He said acquisitions completed during the year, notably in the beverage sector, had "unlocked new avenues for growth" and further diversified revenue streams.

"The recent, earnings-enhancing acquisition of the 1001 carpet care brand, which was completed earlier this month, supports our ambitions to add well-recognised UK consumer brands to our existing product portfolio," McDonald said.

"By introducing 1001 to our vertically integrated platform, we continue to bolster our product range and strengthen our presence in high-demand consumer goods segments."

He added that acquisitions remain a core driver of Supreme's growth strategy, with a "robust M&A pipeline" providing opportunities across multiple categories and markets, while also fuelling new product development.

McDonald said the AIM-traded group had "successfully navigated the evolving UK vaping market" by managing the 1 June ban on disposable vapes and the shift to pods and other alternatives, allowing it to retain all major customers and maintain growth and stability in the segment.

Analysts' consensus forecasts for the year to 31 March 2026 currently stood at �236m in revenue and �35.8m in adjusted EBITDA.

At 1045 BST, shares in Supreme were up 1.01% at 184.84p.

Reporting by Josh White for Sharecast.com.