88vape Listed on the Stock Exchange

Posted 16th February 2021 by Dave Cross
Owners of the 88vape brand have listed on London’s junior AIM market, continuing the dramatic growth of an organisation that has grown out of chief executive Sandy Chadha selling batteries from the back of his father’s van. Supreme PLC launched with a share price of 134p, since rising to 170p, leaving the company with a current valuation of almost £200 million.

Selling at seaside resorts in 1975, the company moved in to consumer products and batteries in the early Nineties. Supreme now features in the Financial Times’ FT1000 and has a predicted turnover of £130 million this financial year.

Supreme PLC’s growth sees it now as one of the largest importers and distributers of wholesale batteries, lighting, vaping and light fittings. The company services over 6000 accounts with its range of leading brands and, a key unique selling point, offers some of the “highest profit margin per square foot out of any consumer products.”

Its consumer base is serviced by formal business relationships with retail outlets including Poundland, Sports Direct, Asda, Halfords, Iceland and Costcutter. It also holds contracts to supply HM Prison & Probation Service.

A key part to its success of late is the boom in the vape market and its dominance of the budget sector – currently estimated to be a 36% market share. Supreme pumps out 5.2 million bottles of eliquid every month, with a sizeable proportion of this being 88vape’ £1-per-bottle juice1. The other part of Supreme’s vape business is selling almost 800,000 vaping kits per year.

E-liquid production facility

The Electronic Cigarette Company

Supreme puts its success down to, “a vertically integrated platform providing an excellent route to market for well-known brands and products”.

Chadha told journalist prior to the share issue: “I am deeply proud of the business we have developed and believe our flotation on AIM will provide Supreme with the tools with which to capitalise on a number of exciting growth opportunities. We have created a profitable business of significant scale, underpinned by a platform which provides a seamless route to market for a number of leading brands and product categories.”

The listing marks the development of a UK vape industry that grew from kitchen work surfaces and garden sheds. Later in the week we will be looking at the current state of the home vape market.

References:

  1. 88 Vape - https://www.supremeoffers.co.uk/Category/Vaping/88vape

Image by Ahmad Ardity from Pixabay


 Dave Cross
Article by Dave Cross
Freelance writer, physicist, karateka, dog walker
ALD Group