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  • Shares are up nearly 40 per cent today after the company revised its profit guidance the the second half of 2019
  • Strong sales from the company’s subsidiaries have bumped its profit guidance to sit between $21 million and $22 million
  • Both subsidiaries, ALG and Ikon, received stronger-than-expected student enrolments for the second half of 2019
  • UCW previously operated as as a lingerie store, but has since rebranded to operate in the education sector
  • As at 4:10pm AEST, UCW shares are up 38.46 per cent to trade for 18 cents each in a $19.95 million market cap

Undercoverwear, now known simply as UCW, shares are up nearly 40 per cent after the company revised its profit guidance the the second half of 2019.

UCW had previously reported an expected full year group revenue between $19 million and $21 million, but strong sales from the company’s subsidiaries have bumped this prediction to now sit between $21 million and $22 million.

UCW wholly owns two subsidiaries in the tertiary education sector: Australian Learning Group (ALG), which is a vocational education provider; and Ikon Institute of Australia (Ikon), a higher education provider. ALG is focussed on the international student market, and Ikon on the domestic student market.

According to UCW, both ALG and Ikon received stronger-than-expected student enrolments for the second half of 2019, prompting the upgraded profit guidance.

Both education companies are also expected to recorded a stronger earnings before interest, tax, depreciation and amortisation (EBITDA) than the first half of this year.

On top of this, UCW says it expected to report an underlying consolidated EBITDA for the 2019 financial year of between $1.4 million and $1.7 million. This is a major increase on the underlying consolidated EBITDA of the 2018 financial year, which UCW reported as $0.1 million.

On June 30 this year, UCW’s cash position sat at $4.7 million compared to $1.6 million on December 31 2018.

For ALG, enrolments for the fourth quarter of 2019 were at a record 2001 — up 37.4 per cent to the same period last year. Ikon, similarly, has had predicted revenue for the 2019 financial year upgraded from between $5.5 million and $6.5 million to between $6.5 million and $7 million.

UCW has operated in two separate and entirely unlike sectors: women’s lingerie and private education. The business crashed in 2013 when it simply traded as a lingerie store, but has since rebuilt itself in the education market.

UCW bought ALG in 2016, and this is the first year it has owned and operated Ikon. The company also owns subsidiary Undercoverwear Unit Trust

As at 4:10pm AEST, UCW shares are up 38.46 per cent to trade for 18 cents each in a $19.95 million market cap.

UCW by the numbers
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