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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group

November 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.

  • Epic Code:
  • RTN
  • Price:
  • 48p
The shares surged towards 50p after the disposal of its loss-making leisure division. The divisional disposal of 75 sites sharpen the strategic focus to Pubs, Concessions and Wagamama. Jefferies says the transaction will improve margin by over 1%, marginally enhance eps in the first full year, reduce lease liabilities by c. £50m and reduce leverage with net debt / EBITDA to fall below 1.5x before the end of FY’25. Earlier in the month, interims also supported a “moderate increase in management’s FY ‘23 EBITDA expectations.” H1 EBITDA was 15% ahead at £36m after adjusting for the £10m VAT benefit in Q1 last year. Its first divisional break-down showed Wagamama EBITDA profit up strongly (+25% at £28.8m), Brunning & Price broadly ...

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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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