Doncaster businessman takes stake of almost £1m in struggling Joules

A Doncaster businessman has taken a nearly £1m stake in struggling middle-class fashion brand Joules, calling the share ‘very cheap’.

Richard Teatum owns Stoneacre Motor Group, which sells 80,000 cars a year at 140 dealerships and employs 3,000 people.

His stake in the ‘yummy mummy’ brand reached 8.92 per cent this week, a stake of around £900,000.

Teatum, 65, has bought stock because it is “massively undervalued.”

He said, ‘I think it’s very cheap. The value is fantastic and I will continue to buy. The net asset value is obviously a lot higher than the market cap, but I think this will be a great investment in the long run.”

As a sign that he could buy more, Teatum added that he is “always looking for a good company and a good price.”

The businessman also revealed that he had received a letter inviting him to meet with the board of directors just days after becoming the second largest shareholder.

Confidence in the brand will provide some respite after it failed to convince Next to invest £15m in the company last month.

Teatum called on the company to “focus on profitability.” Valued at £140m after the shares went public in 2016, Joule is now worth around £8.7m. Tom Joule is the largest shareholder with a stake of 21.78 percent.

Shares in Joules, which fell 93 percent this year, were up 17.6 percent or 1.35p to 9p.