Primary Recommendation

Loungers - Best-in-class cafe bar group looks set to beat forecasts

September 2020

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.

Despite Government support, the hospitality industry has been walloped by Covid-19 to such an extent that many household names, such as The Restaurant Group, Ask, Prezzo, Carluccio’s, Travelodge and Cote Brasserie, are shutting dozens of outlets and analysts estimate up to 30% of UK hospitality sites have permanently shuttered. But every cloud has a silver lining and history shows that it’s exactly times like this that the survivors do indeed thrive as less competition clears the way for sales and profit margins to shoot ahead when the economic dust settles. One firm that’s been on our radar for a while is AIM-listed Loungers, which operates 165 outlets across two café-bar concepts throughout the UK. Until Covid-19 struck, Loungers had s ...

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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.

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