Updates

OntheBeach

July 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.

I again spoke with management of OTB after interims for the period ending 31 March. Incoming CEO Shaun Morton said there had been a wide range of brokers forecasts from “low £20ms to over £40m EBITDA in the build-up to results and the suspicion is some brokers hadn’t listened when OTB previously flagged the need to increase investment in marketing (such as Magic Breakfast and Masked Singer) and travel perks (e.g. free lounge access) and also increase overheads to improve credit card functionality, technology and staffing. As an example Numis (at the higher end of the range) immediately downgraded FY’23 and FY’24 EBITDA 10% to £30.3m and £39.7m for new eps of 10.7p and 15.4p, respectively. But the overall picture remains positive. ...

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Belvoir

H&T - Pawn loan book grows 6%

On the Beach - Extremely cheap on ex-cash prospective PE of 5.5 (July 2024)

On the Beach (April 2024)

On the Beach (March 2024)

On the Beach - Full year profit “at the top end of the range” (November 2023)

On the Beach - Very encouraging meeting with CEO and founder; upgrades likely (March 2023)

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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