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Kitwave Group PLC (GB:KITW)
:KITW
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Kitwave Group PLC (KITW) AI Stock Analysis

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GB:KITW

Kitwave Group PLC

(LSE:KITW)

Rating:65Neutral
Price Target:
253.00p
▲(1.20%Upside)
Kitwave Group's overall stock score reflects strong valuation metrics and positive corporate events, offset by weak technical indicators and concerns over financial performance due to declining net income and rising debt. The undervaluation and high dividend yield are significant positives.
Positive Factors
Integration
The integration of Creed is progressing well, with synergy benefits expected to start in H2 2025 and full benefits realised by early 2026.
Market Position
Kitwave is positioned to grow significantly in the highly fragmented UK Retail and Wholesale and Foodservice end-markets.
Market Share
Kitwave is positioned to continue gaining market share and deliver growth for shareholders.
Negative Factors
Cost Pressures
Kitwave continues to look to drive synergy and operational efficiency benefits to mitigate ongoing cost headwinds.
Sector Challenges
Challenges in the hospitality sector impacted the Foodservice performance in the early months of the period.

Kitwave Group PLC (KITW) vs. iShares MSCI United Kingdom ETF (EWC)

Kitwave Group PLC Business Overview & Revenue Model

Company DescriptionKitwave Group PLC (KITW) is a leading independent wholesale business in the UK, specializing in the sale and distribution of a diverse range of products. The company operates across multiple sectors, including ambient, frozen and chilled foods, confectionery, tobacco, and alcohol. Kitwave serves a wide array of customers, such as independent retailers, foodservice providers, and other businesses, by offering a comprehensive selection of high-quality products sourced from numerous suppliers.
How the Company Makes MoneyKitwave Group PLC generates revenue primarily through the wholesale distribution of a broad range of products. The company's key revenue streams include the sale of ambient, frozen, and chilled foods, as well as confectionery, tobacco, and alcohol products. Kitwave leverages its extensive distribution network and strategically located depots across the UK to efficiently supply these goods to independent retailers, foodservice operators, and other businesses. Additionally, the company may engage in strategic partnerships with manufacturers and suppliers to enhance its product offerings and maintain competitive pricing, thus driving sales volume and profitability.

Kitwave Group PLC Financial Statement Overview

Summary
Kitwave Group PLC has strong revenue growth and operational efficiency. However, the decline in net income and increasing debt levels are concerns. Sustaining cash flow is crucial for financial health.
Income Statement
75
Positive
Kitwave Group PLC has demonstrated strong revenue growth, with a significant increase from the previous year. The gross profit and EBIT margins are healthy, indicating efficient cost management. However, the decline in net income and its margin suggests potential challenges in managing operating expenses or interest costs.
Balance Sheet
68
Positive
The company's balance sheet shows a moderate debt-to-equity ratio, indicating a reasonable level of leverage. The equity ratio is satisfactory, suggesting a stable asset base supported by equity. However, the increasing total debt over the years could pose potential financial risks if not managed properly.
Cash Flow
72
Positive
Kitwave's cash flow statement indicates solid operating cash flow relative to net income, supporting its operational efficiency. The consistent free cash flow generation is a positive sign, although the decrease in free cash flow compared to the previous year is a concern. The company must maintain its cash flow to ensure financial flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue663.65M602.22M503.09M380.69M592.02M
Gross Profit147.82M132.13M102.63M68.58M96.02M
EBITDA41.40M39.33M28.37M19.77M24.63M
Net Income16.72M18.96M14.34M1.10M-500.00K
Balance Sheet
Total Assets359.29M209.59M179.66M148.82M129.86M
Cash, Cash Equivalents and Short-Term Investments4.14M673.00K5.51M4.97M342.00K
Total Debt121.39M59.07M49.10M39.26M82.16M
Total Liabilities234.74M125.14M107.77M87.23M129.92M
Stockholders Equity124.55M84.44M71.89M61.58M-53.00K
Cash Flow
Free Cash Flow24.13M26.38M23.92M4.96M26.76M
Operating Cash Flow31.40M30.30M26.52M7.92M29.89M
Investing Cash Flow-77.09M-23.04M-19.21M-2.71M-16.30M
Financing Cash Flow49.15M-12.10M-6.77M-577.00K-14.45M

Kitwave Group PLC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price250.00
Price Trends
50DMA
291.06
Negative
100DMA
277.67
Negative
200DMA
287.25
Negative
Market Momentum
MACD
-12.82
Negative
RSI
39.38
Neutral
STOCH
39.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KITW, the sentiment is Negative. The current price of 250 is below the 20-day moving average (MA) of 252.83, below the 50-day MA of 291.06, and below the 200-day MA of 287.25, indicating a bearish trend. The MACD of -12.82 indicates Negative momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 39.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KITW.

Kitwave Group PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£7.52B15.4217.39%294.27%-0.18%-4.60%
71
Outperform
£515.52M28.8719.67%615.60%1.21%-2.98%
68
Neutral
£207.24M5.1964.21%0.81%125.55%
65
Neutral
£10.65B8.413.35%298.68%-1.40%17.93%
65
Neutral
£209.34M11.5415.19%458.00%19.01%-15.21%
56
Neutral
£328.68M
372.09%
50
Neutral
£302.03M-2.48%208.33%-16.16%80.50%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:KITW
Kitwave Group PLC
250.00
-63.53
-20.26%
GB:BNZL
Bunzl plc
2,330.00
-829.91
-26.26%
GB:PZC
PZ Cussons
72.00
-30.71
-29.90%
GB:NICL
Nichols
1,415.00
330.57
30.48%
GB:MCB
McBride
121.40
-12.10
-9.06%
GB:54GW
Fuller Smith & Turner
107.50
12.26
12.87%

Kitwave Group PLC Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Kitwave Group PLC Sees Increase in Major Holdings by Downing LLP
Neutral
Jul 18, 2025

Kitwave Group PLC has announced a change in its major holdings, with Downing LLP increasing its voting rights from 3.06% to 4.14%. This acquisition of additional voting rights signifies a strengthened position for Downing LLP within Kitwave, potentially impacting the company’s governance and strategic decisions.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £4.75 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Business Operations and Strategy
Kitwave Group Sees Shift in Major Shareholder Voting Rights
Neutral
Jul 11, 2025

Kitwave Group PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP reducing its voting rights from 9.653% to 5.702%. This shift in voting rights could impact Kitwave’s strategic decisions and influence within the market, as Liontrust’s reduced stake may alter the dynamics of shareholder influence and decision-making processes.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £420.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Other
Kitwave Director and PCA Increase Shareholding
Positive
Jul 4, 2025

Kitwave Group PLC announced that Gerard Murray, a Non-Executive Director, along with his PCA, Marta Fernandez Varona, purchased a total of 30,000 ordinary shares of the company on July 3, 2025. This transaction, conducted on the London Stock Exchange, reflects a modest increase in their shareholding, each now holding 75,000 shares, representing 0.09% of the current issued share capital. This move could indicate confidence in the company’s future prospects and may impact investor perceptions positively.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Kitwave Group PLC Reports Revenue Growth Amid Operational Challenges
Neutral
Jul 1, 2025

Kitwave Group PLC reported a 26.7% increase in revenue to £376.2 million for the six months ending April 2025, driven by strategic acquisitions and infrastructure investments. Despite record revenue and operating profits, the company anticipates lower than expected financial performance due to increased operational costs, macroeconomic challenges affecting consumer confidence, and higher employer National Insurance contributions. The integration of Creed Foodservice and the new South West distribution center have strengthened Kitwave’s position, but the company has revised its profit expectations for the year. Kitwave remains confident in its long-term strategy and continues to focus on service-led growth initiatives, supported by a robust balance sheet.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Financial Disclosures
Kitwave Group PLC to Announce Interim Results on 1 July 2025
Neutral
Jun 10, 2025

Kitwave Group PLC has announced that it will release its interim results for the six months ended 30 April 2025 on 1 July 2025. Following the announcement, CEO Ben Maxted and CFO David Brind will host an online analyst briefing. This upcoming release is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Kitwave Group Appoints Dr. Marnie Millard as Non-Executive Chair
Positive
Jun 2, 2025

Kitwave Group PLC has appointed Dr. Marnie Millard OBE as the new Non-Executive Chair, effective from May 30, 2025, succeeding Steve Smith. Dr. Millard brings extensive experience from her previous roles, including CEO of Nichols Plc, where she significantly increased market capitalization and led successful acquisitions. Her appointment is expected to support Kitwave’s growth strategy and enhance its customer offerings. The outgoing Chair, Steve Smith, played a crucial role in the company’s development, including its IPO in 2021, and his contributions are acknowledged as pivotal to Kitwave’s expansion as a public company.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Kitwave Group PLC Reports Steady Trading and Strategic Expansion
Positive
May 7, 2025

Kitwave Group PLC reported that its trading for the six-month period ending April 2025 was in line with expectations, despite initial weaker demand in the Foodservice division due to hospitality-related revenue declines. The company opened a new Foodservice distribution center in the South West, incurring additional short-term costs to ensure customer service quality. The integration of Creed Foodservice, Kitwave’s largest acquisition, is progressing well, with expected synergy benefits to begin in the second half of 2025. The acquisition has enhanced Kitwave’s national foodservice network, offering immediate customer opportunities and distribution efficiencies. The company remains confident in meeting full-year market expectations, with performance typically stronger in the second half of the year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025