DeepVerge’s consumer skin test subsidiary brand, Skin Trust Club, has announced further significant growth of its platform. Since mid-January, 10 leading skincare manufacturers have enlisted on the Skin Trust App marketplace to sell their skincare product catalogues, including Tula, a recently acquired brand of Procter & Gamble.
With a total of 23 Labskin clients requesting to have their products tested in just the past four months, the Club’s full partners list can be expected to continue to expand throughout 2022. Moreover, given that an exceptional 82% of registered Club members (>1,500) who received Home Test Kit results since the marketplace opened subsequently purchased ‘high ticket’ recommended skincare products via the Skin Trust Club App, which realistically can be expected to enjoy a wholesale margin similar to, for example, the 48% enjoyed by leading health & beauty retailer, Boots UK Limited, the long-term value of the recurring revenue streams generated through this unique service could become very significant.
This news reinforces TPI’s confidence in the ambitious forecasts and valuation that it published back on 3 August 2021, suggesting a target price for the Group, which presently trades at less than 7.5x its 2022E EBITDA multiple, of 94.7p/share.
(Please note that TPI’s valuation is based on financial modelling and there is no guarantee that such a valuation will ever be realised, therefore please do not base investment decisions on this valuation alone. Also please note that past performance is not a reliable indicator of future results.)
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