Supreme PLC (AIM:SUP) reiterated it does not expect the government’s disposable vaping ban to have any long-term impact on its businesses as it reported more than doubled profits in its latest financial year.
Whether the policy will even still be in place after Thursday’s election is not clear, but Sandy Chadha, chief executive. said that Supreme would be able to deal with whatever transpires.
“I am not concerned that the Government's vaping proposals will have any long-term impact on Supreme as a responsible manufacturer and distributor with resources and experience to adapt to potential new market dynamics," he said.
Chadha added that the group, which is the master distributor for vape products ElfBar and Lost Mary in the UK, had already instigated 'numerous proactive measures' to combat underage vaping, which it believes should be adopted across the industry.
Revenues in the year to end March 2024 rose by 42% to £221 million with pretax profits 109% better at £30.1 million.
Supreme added it has made a good start to the current year with trading in line with expectations.
The group recently announced the acquisition of Clearly Drinks and Chadha said it is evaluating more complementary acquisitions.
"Supreme has delivered an outstanding financial performance across the period, with strong revenue growth across all five of our divisions.
“Looking at our vaping business, we are fully committed to doing what we can to support the eradication of underage vaping so that the industry can get back to its core objective: helping adult smokers find an affordable, sustainable, and safer alternative to smoking
“We've made a very positive start to the current financial year, and I look forward to updating all our stakeholders later this year on our continued progress."
The shares dropped 4% to 172p.