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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Clapham House

January 2008

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:
  • CPH
  • Price:
  • 189p
Shares in restaurant operator Clapham House suffered a sickeningdrop after issuing an unexpected profit warning. Although profit beforetax increased from £1.2m to £1.5m for the six months ended 30September, the company warned that profits for the year to 31 March2008 and also 2009 will now be significantly below its originalexpectations.  This is a result of several factors, notably a reduction in newopenings  for 2009 from 25 to 18 because the uncertain economicoutlook, potential food cost inflation and recent increases in rentsfor new properties means the numbers don’t stack up so well. With netdebt standing at £13.3m and no freeholds in the estate, this is aprudent move. The other main bug bear was a furth ...

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Related Articles

Clapham House - 13 new openings this year (November 2007)
Clapham House - Healthy pipeline of new openings (August 2007)
Clapham House - Potential to open at least 300 restaurants (May 2007)

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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