Get our Weekly Trading Update email:

Financial trading blog

Monday, November 23, 2015
Connor Campbell - Market Analyst at Spreadex

Stock of the day 23/11/2015 – Patisserie Holdings PLC

Since its IPO last May Patisserie, owner of upmarket café and cake store Patisserie Valerie (among others, has had a fairly impressive run, with some big movements pushing the stock higher and higher. That wasn’t always the case, however; after opening at £1.83 the stock struggled to break £2 for any significant period of time in the first 6 months after its market-debut. Yet the announcement of its first full year results as a listed company at the end of November 2014 soon changed that; a 37% increase in pre-tax profits to £11.3 million and a doubling of online sales to £2.6 million soon got previously apathetic investors interested, with Patisserie rocketing all the way to £2.64 by the start of 2015.

Patisserie Holdings PLC Chart November 2015
(Source: 23/11/2015)

Being named IPO of the Year at the end of January helped matters further, sending the stock towards £2.90, before a slump at the end of February left the stock hovering between £2.70 and £2.80 until mid-May. Yet Patisserie then provided investors with a delicious 1 year anniversary present in the form of its half year interim results; pre-tax profit jumped 45% to £7 million, whilst revenue increased by 22% to £43.7 million. This sent the stock stratospheric, climbing nearly 22% in the following 5 days to hit a high of £3.50.

This high proved to be a bit too rich for investors’ blood, however, and by the start of July the stock was trading at a more stable £3.20 following news that the company was to open 6 Debenhams concession stores. The market turmoil of July and August did take its toll on Patisserie, at one point pushing it back down to £3, but the stock’s resilience saw it consistently bounce back to £3.20 sooner rather than later. A surge at the end of October then saw Patisserie briefly hit an all-time high of £3.53, before falling across November to a current trading price of £3.38 (, 23/11/2015).

In terms of Patisserie’s full year results on Friday, investors will be keen to receive an update on the 20 stores the company had planned to open in 2015; figures-wise, analysts are looking for sales of £96.6 million alongside earnings before tax and depreciation of £17.9 million. Any expansion of the Debenham’s deal, one imagines, would be a cherry on top.

Patisserie Holdings has a consensus rating of ‘Buy’ with an average target price of £3.36.

Recent Posts:
Weekend Paper Roundup 23/11/2015
Morning Market Comment 23/11/2015
Evening Market Comment 20/11/2015
Afternoon Market Comment 20/11/2015
Stock of the day 20/11/2015 - Betfair Group PLC


Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone so please ensure you fully understand the risks involved.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this blog should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This blog does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this blog does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this blog by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this blog.

The information contained within this blog is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to