Updates

Loungers

February 2023

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.

Loungers delighted investors with like-for-like sales accelerating to 18.5% over the last 18 weeks to 2nd October. When setting price increases, Loungers must steer between the Scylla of becoming less competitive (it typically prices below casual dining rivals) and the Charybdis of not covering rising costs, particularly wage inflation. But given Liberum’s FY’23 EBITDA forecasts (year end April) are unchanged at £46.4m for eps of 8.6p, rising to £53.9m and 10.2p in FY’24, that’s a success in these conditions. Loungers opened 15 sites year to date and is on track to meet its target of 30 for the year. New sites are achieving above average sales, with its rent / revenue ratio falling to only 4.7% and average ROIC remains above 30%. ...

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Conygar Investment

Hunting - Raises 2023 market expectations

Loungers - Agreed bid at 310p; gain 172% (January 2025)

Loungers (December 2024)

Loungers - Opening 35 casual dining outlets annually there’s plenty of runway to 665 target (September 2024)

Loungers (June 2024)

Loungers - Strong trading delivers new upgrade (January 2024)

Loungers - Like-for-like sales accelerate to almost 10% (December 2023)

Loungers - Roll-out target upped from 400 to 600 (September 2023)

Loungers (June 2023)

Loungers - Accelerating new openings from 24 to 32 as it eyes 500 outlets (September 2022)

Loungers (June 2022)

Loungers (February 2022)

Loungers (January 2021)

Loungers (December 2020)

Loungers (October 2020)

Loungers - Best-in-class cafe bar group looks set to beat forecasts (September 2020)

Loungers - New issue moves to healthy premium (June 2019)

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.

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