Factsheet Commentary: July 2021

In terms of performance, July was not a good month. NAV was down 4.4% due to profit taking in our larger holdings. Towards the end of the month, two of our top 10 holdings, In The Style and Premier Foods, reported encouraging results. 

For the year ending 31 March 2021, In The Style reported an increase in revenue of 132%, to £44.7m, leading to a transition into profitability. In spite of the tough lockdown comparative of the prior year, they also reported a 44% increase in sales for the first quarter of the new financial year. Additional recent developments include a highly successful collaboration with Stacey Solomon (4.6m followers on Instagram) and a deal signed with ASDA that will see its range being available in over 100 stores. Dynamic founder Adam Frisby has achieved a lot in a short space of time and we are confident that the company will continue its strong sales trajectory going forward. 

Providing an update on the first quarter of their FY 22, Premier Foods expressed confidence in their ability to deliver results for the full year at the top end of expectations. CEO Alex Whitehouse has done a remarkable job in turning the business around since he took the helm in 2019. While trading continues to be robust, profits will be further boosted as interest costs continue to scale down.


Sterling Investments Management Ltd
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