Fih Share Discussion Threads

[mashman] 17/7/2001 09:13

From the Telegraph



There's other fish to fry in the sector

EVERYONE knows that fishy tales are to be regarded with suspicion, but Tony Allan's Fish! restaurant chain may turn out to be more than just a load of codswallop.

The concept is simple enough. Fish! diners are restaurants that rely on the quality of the ingredients rather than any special expertise. Because the company also owns a fish supply business, both fish prices and staff training are kept as low as possible.

Fish! is slightly more expensive than rival Pizza Express, but aimed at much the same market. With a recession looming and the struggles of Belgo and Chez Gerard illustrating how hard it is to run a successful restaurant chain, investors are right to be wary.

Fish! is setting sail in choppy waters. However, yesterday's six-month results were encouraging. The company posted a 40pc increase in sales on continuing activities, while pre-tax profit increased to £615,000 from £78,000.

Fish! also announced that Paul Gilligan, former operations director of the business, had become chief executive. Gilligan hails from Pizza Express, and was instrumental in rolling out the business nationwide.

If anyone can do the same for Fish!, it's him. There are now Fish! diners in Leeds and Manchester, proving that the concept works outside London. The company hopes to have 28 diners open by October 2002, which is quick work by anyone's standards.

Providing that it doesn't go too far, too fast, and isn't hit by recession, Fish! certainly has the potential to fly. The shares, at 196.5p, down 7 yesterday, are on 22 times forward earnings.

That's not a bargain. It's a good business, but there are plenty of other fish in the sea.

[big vern] 16/7/2001 18:19

...its a recession - people ain't got the money also their pe is 24 compared to pizza express pe of 19

pizza express ceo also went to fish so with all the hype the price got ahead of itself

Overpriced - short 'em

[julianm] 16/7/2001 17:14

Question

What activities have been discontinued and why? If you add the cont and discont for last period figures show a reduction in sales?

Presumbly this reduction is the reason for the share price drop today?

Any ideas

[marathonmike] 16/7/2001 09:00

Interims issued today indicate things are going according to plan and confirm my post made above on 23rd April. Keep buying:

Fish plc, the quoted restaurant operator of the 'Fish!' diner brand, today
announces Interim results for the six months to 30 April 2001.


* Group turnover, on continuing activities, increased by 40% to #8.408m
(2000: #6.023m)

* Operating profit, on continuing activities, increased sevenfold to #
0.601m (2000: #0.071m)

* Continued expansion of Fish! concept and on target to open 10 new Fish!
diners this financial year, bringing the Group total to 16 by October
2001.

* Rate of expansion programme set to increase with 12 new units due to
open next year; site pipeline secured for 2002 and beyond with sites
predominantly in London.

* Latest openings in New Kings Road and Blackheath are performing above
expectations; Putney and Leeds are performing in line; Battersea unit to
be refocused as a training academy for staff which is core to future
expansion

* Epsom opened last week; additional new units scheduled to open in second
half in Solihull, Wandsworth, Clerkenwell, Manchester and Marlow

* The food preparation division continues to provide the necessary
infrastructure to underpin the roll out programme

* Due to success of accelerated expansion and openings, Paul Gilligan has
been appointed as Chief Executive; Jeremy Ormerod resumes the position of
Finance Director; and Eric Garnier becomes Operations Director

[marathonmike] 24/4/2001 22:30

Tightfist

I am a Zanzibar fan held on and accumulated through the dip so came out on top after todays good news from Springwood.

Regarding Fish. Gilligan claimed to have learnt a few tricks from time at Pizza Express:
will not pay over the odds for property, hence waiting for maket to soften before moving into N. London
not prepared to start franchising as difficult to maintain quality standard and Fish is aiming for higher end of market than PIZ
Cash flow is stronger than EPS and they have funds from sale of Bank, Zander and Quadranet float.

12 more outlets lined up for this year and 20 the following year

[tightfist] 24/4/2001 21:48

Marathonmike,

I'll take a look at French Collection. I'm in SFI - missed the ICM breakout and declined to pay the price. Mistake!!

I also like Springwood; re-entered recently but leapt today on a trading update; may still be worth a punt.

Anyway, more to the point, what did Paul Gilligan have to say? How confident was he that they will get the same business levels as they move away from the really prime areas? What's the scope for number of outlets? Are they going to have to come back to the market? Is Tony Allen going to stick to the knitting, or get distracted by other ideas? etc. etc.

tightfist

[marathonmike] 24/4/2001 10:02

tightfist,

SFI, ICM Computer and French Connection all swimming in the same pool. Core growth stocks in my portfolio.

Mike

[tightfist] 23/4/2001 21:58

marathonmike,

This is one of my favourite companies. A modular roll-out concept offering high ROA, and with cash on the balance sheet from their recent sale of the signature restaurants. This company is followed by both Analyst magazine and IFG. I jumped back in at 145 a few weeks ago; have you any more of these in your sights?

tightfist

[marathonmike] 23/4/2001 21:32

This company really looks good in REFS meeting all Slater criteria for growth. PEG 0.33, cash flow earnings etc. Met with Ops Dir Peter Gilligan at IC conf last Sat he sees FIH taking up the growth where his former employer PIZ left off.
Bookings are up on expectations as the restaurants benefit from foot & mouth situation - healthy eating in large towns.
I am not the only buyer as they jumped 17p today with a lot further to go

Mike