The Doncaster businessman takes a nearly £1million stake in struggling middle-class fashion brand Joules – calling the action ‘very cheap’
Boost: Shares in Joules, down 93% this year, rose 17.6%
A Doncaster businessman has taken a nearly £1million stake in struggling middle-class fashion brand Joules, calling the action ‘very cheap’.
Richard Teatum owns Stoneacre Motor Group, which sells 80,000 cars a year through 140 dealerships and employs 3,000 people.
His stake in the ‘yummy mummy’ brand reached 8.92% this week, a stake worth around £900,000.
Teatum, 65, bought shares because they are “massively undervalued”.
He said: “I think it’s very cheap. The value is fantastic and I will continue to buy. The net asset value is obviously much higher than the market capitalization, but I think in the long term it will be a fantastic investment.
In a sign that he could buy more, Teatum added that he is “always on the lookout for a good company and good value for money”.
The businessman also revealed that he received a letter inviting him to meet the board just days after becoming the second largest shareholder.
The vote of confidence in the brand will offer some respite after it failed to convince Next to invest £15million in the business last month.
Teatum called on the company to “focus on profitability”. Valued at £140m after the shares went public in 2016, Joules is now worth around £8.7m. Tom Joule is the largest shareholder with a 21.78% stake.
Shares in Joules, down 93% this year, rose 17.6%, or 1.35p, to 9p.