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GLOBE INTERNATIONAL LIMITED (GLB)

GLOBE INTERNATIONAL LIMITED (GLB)

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General Information
Company Name: Globe International Limited
Stock Code: GLB
Website: www.globecorporate.com
GICS Sub-Industry: Apparel, Accessories & Luxury Goods
Market Cap ($M): 14
Equiv. Shares (M): 41

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.330 $ 0.330 $ 0.330 $ 0.330 $ 0.350 20,000 $ -0.020  -5.714 %

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 30th Sep 2009
12 Month Target Price (average): $0.34
Brokers Surveyed: 1

Company Overview

Business Description:
Globe International Limited (GLB) is an international multi-branded wholesale company, specializing in the sale of footwear, apparel and skateboards to retailers and distributors in the boardsports and youth markets. GLB supplies wholesale products directly to retailers and through third party distributors in Australasia, North America and Europe. GLB also maintains a small number of flagships branded retail stores in key market countries.

Strategy Analysis:
Globe's strategy is focused on brand design, development and acquisitions in the board-sports and streetwear categories. Within those segments it owns a range of brands tailored to different subcultures and spanning from apparel and footwear to hardgoods in skate, surf and snow. Its target market is the young and active, who are willing to pay premium price for a popular brand. Growth is targeted through significant investment in brands, innovative marketing and by continually seeking out new markets. The company also has a focus on managing its cost base, reducing working capital and improving management reporting systems across the group. Globe intends to lift its profile in surfwear to appeal to a broader customer base, while still competing in the traditional skate market. The group also intends to extend the established proprietary skate brands (particularly the Kubic Marketing brands) into apparel. Globe has an international profile with products in over 65 countries. The company is aiming to increase exposure in the North American and European markets, and has recently established a headquarter in France. The company owns brands including Globe, Mooks and M-ONE-11, and is also licensed to sell international brands including Paul Frank, Stussy and Ecko in Australia.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2011  A 1.2 3.0 -43.4 19.2 5.0 8.8 100.0
2010  A 2.2 5.3 -- 7.8 5.0 12.1 100.0
2009  A -2.4 -5.8 NaN 0.0 0.0 0.0 --
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F
Billabong Intl (BBG) $531 M -0.1868 -0.4685 0.1593 4.3830 8.2466 7.1133 0.1408 0.0313 0.0474
Globe (GLB) $15 M -0.4446 -- -- 11.8243 -- -- 0.1429 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
GLB 0.81 11.1 0.29 -- 0.15
Market 1.12 11.1 0.96 2.31 2.55
Sector 0.63 11.3 0.70 10.00 0.37

Directors
Name Position Start Date
Mr Paul Dean Ramsbottom Isherwood Chairman 01 March 2001
Mr Peter Hill Executive Director   
Mr Stephen Hill Executive Director   

Management
Name Position
Matthew Hill Chief Executive Officer
Jessica Hogan Chief Finance Officer
Gary Valentine Chief Operating Officer
Gerhard Correa Company Secretary
Jon Moses President - Australasia
Matthew Wong President - Global Product

Substantial Shareholders
Holding Name
11,986,281 (28.91%) Hill Stephen D
11,986,281 (28.91%) Hill Peter J
2,436,022 (5.88%) Polytown Pty Ltd
3,454,465 (8.33%) Matthew Patrick Hill

Calendar of Events
Date Event
21 February 2013 Report (Interim)
21 September 2012 Report (Annual)
16 August 2012 Report (Prelim)
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