UK firms have been getting snapped up at a rate of knots recently. In the , we’ve seen , the telecoms testing company, and cybersecurity firm agree to be . and have also attracted suitors.
The reason, of course, is that many UK stocks are undervalued. And while the FTSE 250 has risen nearly 14% in six months, I don’t reckon the acquisition binge is over just yet. Falling out of fashion One possible takeover candidate that stands out to me is ( ).
The stock’s plunged 52% in the last 12 months and is down around 82% since going public in January 2021. The bootmaker has encountered an almost perfect storm over the past couple of years. First, consumer spending has been under pressure due to high inflation, which has also increased the firm’s costs of materials and labour.
Sales have weakened in it largest market, the US, where it has also suffered problems at its new Los Angeles warehouse. In its most recent quarter, revenue fell 18% year on year to £273m (at constant currency). This slowdown caused management to issue a profit warning, its fifth in three years.
This will have severely dented investor confidence in its guidance and prospects. Finally, the CEO’s stepping down after leading the business since 2018. He will be succeeded by the company’s chief brand officer before March 2025 (the end of its current financial year).
This has created further uncertainty. A takeover looks possible Despite all this, Dr Martens still expects to post full-year profits. Those .
