Carluccio's Share Discussion Threads

[utterly pointless] 26/5/2009 14:23

a view they obviously took...

[spaceparallax] 19/5/2009 10:56

Really solid results - there are a couple of dips in cashflow and PBT, but the picture remains strong. I've see recent news articles saying that the current PER is 19 and that the share can't support higher. I simply don't agree - this is a fledgling business that will continue to grow and will yield much higher EPSs once we're through this difficult period.

They don't need to sell - why bother?

[spaceparallax] 18/5/2009 12:29

Interesting to know the bidder's identity - whilst I retain doubts as to the likelihood of an acceptable bid figure, I can imagine Antonio being happy at the quality of the bidder. I have always rated the Loch Fyne and Pizza Express operations - which approach (but not quite meet IMHO) the standards demonstrated by CARL.

[utterly pointless] 17/5/2009 18:54

I suspect we will see a rise tomorrow given that we know the bidder is a player... I read it as simply an attempt to dampen share price expectations.

[westcoastrich] 17/5/2009 17:49

It is not clear how likely Hutton Collins is to press ahead with its interest. The share-price rise may have made it harder to put a formal offer together.


Dont sound promising!

[utterly pointless] 17/5/2009 08:00

From The Sunday Times:

Carluccio's mystery bidder revealed
Matthew Goodman

AN investment firm that has previously backed both Pizza Express and Loch Fyne fish restaurants is the mystery bidder for Carluccio's, the chain of Italian eateries.

Hutton Collins has been working on plans to take AIM-listed Carluccio's private for several weeks. This month the chain, founded by chef Antonio Carluccio, confirmed to the stock exchange that it had received an approach but declined to name its suitor.

A successful bid would end its brief life as a public company. The chain was founded in 1991 when Carluccio and his wife Priscilla opened a delicatessen next door to their Neal Street Restaurant in central London. It proved a hit and the couple began opening further sites. Today there are about 40 outlets in the UK.

The company floated in 2005, allowing the couple to sell their stake for about £11m. Today, the chef has no involvement in the day-to-day running of the firm, but advises on menu development and helps with marketing.
Related Links

* Approach for Carluccio's feeds life into sector

* Carluccio's shares jump 25% on bid approach

Shares in Carluccio's have risen more than 20% since the bid approach was announced, closing at 97p on Friday, just above its float price. That values the group at £55.7m.

It is not clear how likely Hutton Collins is to press ahead with its interest. The share-price rise may have made it harder to put a formal offer together.

Carluccio's is due to present half-year results on Tuesday. KBC Peel Hunt, the broker, expects half-year profits to fall to £2.1m from £2.7m last year.

Neither Carluccio's or Hutton Collins would comment.

[steverobo] 14/5/2009 15:07

I hoped that - but it appears that by the look of the rns the ASK brothers are selling !

[spaceparallax] 14/5/2009 14:31

It is unless his approach is refused and he can't get the mandatory %ages.

[utterly pointless] 14/5/2009 13:41

rather suggests the mms are filling a big buy order to me... which I take to be very encouraging news...

[steverobo] 14/5/2009 13:31

Anyone have any idea where we are at with this ?

Massive sells - yet price is stable !

this is odd

[spaceparallax] 11/5/2009 15:58

I couldn't see them selling for that.

Looks as if the sp's ready for the next step up.

[b3eper] 11/5/2009 14:31

Agreed..... think it would need to be above £1.75 imho

[spaceparallax] 06/5/2009 11:13

Silver,

Ordinarily I'd agree. However, this is unlike most other businesses - they are a proud business with a big Family stake, demonstrated growth that's internally funded and with an share price heavily suppressed by the current economic climate. They don't need to sell and won't want to sell IMHO, unless the offer is exceptional - I don't see a deal being done, but I do see the share price benefitting from a rerating.

[silverfern] 06/5/2009 07:42

well done to patient holders. As to sell price, realism will rule right now. THey will buying the name ie reputation and the locations but trading remains very difficult and of course financing the deal will have a cost. Anything over £1 will mean an 70-80% premum on the ave share price since Jan.

[utterly pointless] 06/5/2009 07:33

From the FT

Carluccio's is on the menu for takeover

By Pan Kwan Yuk and Neil Hume

Published: May 6 2009 03:00 | Last updated: May 6 2009 03:00

Shares in Carluccio's rose strongly yesterday after the Italian restaurant chain said it had received a preliminary approach from an unnamed suitor.

Market speculation last night was that the approach was from a private equity group, although Richard Caring, the restaurateur who owns landmark London dining spots such as the Ivy and Le Caprice and is a major shareholder in Carluccio's with a 12 per cent stake, has also been tipped as a possible suitor.

Carluccio's, which is being advised by Hawkpoint Partners, said in a statement that there was no certainty that an offer would be made.

However, the shares, which have gained nearly 35 per cent since the start of April, rose another 18 per cent, or 14p, to 92½p.

The current share price, which is still some way off the high of 231p achieved in 2007, gives the company a market value of about £52m.

Douglas Jack, an analyst at Numis Securities, said in a note that a likely bid price could be between 110p and 120p a share, or 9 to 10 times earnings before interest, tax, depreciation and amortisation.

"The restaurant sector could be vulnerable to a round of consolidation, given better than expected trading conditions, historically low valuations and government fiscal and monetary efforts to inflate the economy," he said.

Carluccio's, which has 42 outlets and this year opened its second overseas restaurant, in Dubai, appeared to be weathering the pull-back in consumer spending better than many of its rivals.

"It's a highly regarded business," said one restaurant industry adviser. "It trades all day and has a low average spend per head. Plus, it has no debt."

In its most recent trading update in April, Carluccio's announced a 14 per cent rise in half-year sales, in spite of the economic downturn.

However, because management does not give like-for-like sales figures, it is not clear how much of the growth was driven by new restaurant openings rather than by organic growth.

Pre-tax profit for the year ending in September was up 14 per cent at £5.6m, on revenue that rose 20 per cent to £64.1m.

The first Carluccio's was opened in 1999 and took the name of Antonio Carluccio, a restaurateur from Campania in southern Italy, who has since stepped down as a consultant to the company.

Lombard, Page 18

[hotstuff] 06/5/2009 07:28

If you look at the graph nearly every investor is well down on this share except those who have bought very recently,so the bid will need to be enough to satisfy those investors,i.e.150p min.imho.

[spaceparallax] 05/5/2009 13:29

I couldn't see CARL selling for less than £2. I know all the arguments about current circumstances etc...however, CARL are a solid, growing concern that is self-financing and with no need whatsoever to sell.

[utterly pointless] 05/5/2009 12:18

i think one needs to recognise that the concept is very scaleable (or however you spell it) and in a climate where debt is a little more available (or you have an owner with a stronger covenant) prospective p/es might be really quite low... i would be looking for 150p before i sell.

[rbcrbc] 05/5/2009 12:10

So what would be a fair price ?

120p based on a PE of 20 ?

[utterly pointless] 05/5/2009 12:02

surprising it has taken as long as that for IC to look stupid... it usually manages it within seconds of publication... seriously, I am surprise CARL has not moved up more on this news - i think it is a great little company and with no debt and great growth prospects 95p seems a very modest takeout premium...

[u813061] 05/5/2009 11:50

The Investors chronicle sell recommendation at 60p looks pretty stupid now.

[spaceparallax] 27/4/2009 11:11

I heard an interesting item mon 5 Live recently, where a couple of shopping centre managers were interviewed concerning consumer activity. Both said that trading was mixed, but were in agreement that instant gratification outlets i.e. cafes, choc shops etc.. appeared to be doing well.

[spaceparallax] 23/4/2009 13:44

Significantly lower volume today; nevertheless, mainly Buys and touching the 80p level - wouldn't be surprised to see further progress today.

[spaceparallax] 22/4/2009 11:26

We're in danger of making 10% at this rate - presumably a tip somewhere.

[spaceparallax] 22/4/2009 09:44

Quite possible in the medium term, although not likely IMHO in the current economic climate.