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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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The Restaurant Group

April 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RTN
  • Price:
  • 29p
Following better than expected interims and director buying, we had hopes for a rapid recovery for the 650-site Restaurant Group but the coronavirus has put paid to that. Final results reveal revenues up 56% to £1,073m (like-for-like up 2.7%) and adjusted pretax profit rising 40% to £74.5m. Eps fell 19% to 11.9p reflecting new shares issued for Wagamama. Crucially, like-for-like sales have risen 5.3% in the first six weeks of 2020 but will likely have fallen since due to Covid-19.Newish CEO Andy Hornby has wasted little time stamping his mark, with emphasis on growing Wagamama, concessions and pubs (together generating c. 75% EBITDA). Wagamama, a pan Asian concept, grew UK like-for-like sales by 8.5% and EBITDA rose 36% ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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