Updates

Loungers

June 2024

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.

The shares spiked to a new high of 266p after casual dining chain Loungers’ update guided FY’24 expectations higher due to buoyant trading. Revenues rose almost 25% to £353.5m which equates to 22.2% year-on-year on a 52 week basis. Like-for-like sales grew 7.5%, so no recession here! Loungers is ahead of plan with its expansion, too, adding 36 sites (against 34 targeted). Even with that outlay, net debt only rose from £6m to £9.7m. Liberum says, “the scope of the roll-out remains vast (600 store target from around 270 today) but is not reflected in the 7.7x EV/ EBITDA”. Its price target is 400p. I am a buyer. ...

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The Property Franchise Group

Loungers (December 2024)

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