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||Market Cap (m)
|Travel & Leisure
Richoux Share Discussion Threads
Showing 26 to 49 of 50 messages
|Half yearly figures due this month and this has been steadily creeping northwards........
|A few thoughts in passing on what perhaps what should but probably wont happen to this company:
Company showing poor to below industry average operational:
Profitability-Operating Margin 3% (6%), ROE 5%
Valuation-£1.6m EBITDA 13x, P/CF 14.5x
Balance Sheet-Net cash £3.95m
Company growing very slowly, profitable but under performing, 17 restaurants in total, only 1 restaurant opened in 2015, company IMHO needs reinvigorating and a change of direction.
Deans Diner and Villagio Ristorante lack competitive edge, moats, unique brand and/or roll out potential, with restaurant prices very high in the UK at the moment, they should be either sold or spun-off.
Argentine steakhouse Gaucho, with 18 branches, and making a loss of £1.4m last year is currently for sale for £100m, so unlikely and unjustified valuations are achievable ATM but the window is closing.
OK to close under-performing branches that can no longer generate a acceptable return.
CEO Shotter and management team are “distracted" by running multiple restaurant concepts, the future now is to focus exclusively on one pure dining concept, Richoux, develop it intrinsically well, and then aggressively roll-out.
Richoux, is not a start-up, is proven profitable and currently makes the best ROA of the group companies operations, offers all day dining, all season business, has an aspirational brand that can be developed further, and rolled out across the UK, currently all CGU’s are in Central London.
The CEO needs to examine closely the Cafe/Brasserie all day menu, marketing needs to also be examined to enhance brand association with public.
Develop a quality brand and you have a inbuilt ability to raise prices= improve margins.
Observe industry trends as well as successful competitors and make adjustments.
A improved Richoux will then need to be tested by the public, the ultimate arbiter, determine prior a minimum hurdle rate which represents an acceptable return for an investment project, if new Richoux CGU exceeds the hurdle rate its profitability is proven, and new branches can be rolled out, focus on major cities outside the M25 area, prime sites more available on lower rents/premiums.
Key decisions on capital allocation should be CEO lead, not by consultants or business development personnel, but new CGU’s should be decentralised, in order to get branch managers to act like owner operators.
The company should consider taking on some debt, along with freed capital from liquidation of Deans Diners/Villagio Ristorante and selectively acquire prime sites at reasonable prices outside of London, eventually margins should improve, free cash flow should increase, debt come down, earnings to rise along with the multiple.
A possible way forward for the company-simple but not easy.
|Here we go, come on the buyers.............!!|
|Think the mm's could struggle to hold this back soon.....|
|RNS confirms further Director buying, what more proof do you need....!!!|
|Moving nicely, let us hope the results next month give us further impetus..|
|Wow, need something to happen with the spread...!!!|
|More volume again yesterday, fingers crossed for more and continue price higher..|
|Yep, exactly my reading, hopefully the costs will have been helped by pruning the marginal Vilagio sites....we need some PR, to get people looking..!!|
|Chris -Read the last trading statement and with the flagship site having a sales drop due to building/scaffolding works?? (Correct me if I'm wrong) this should hopefully bounce back in the next update.If they have controlled their costs and had a good Xmas trading period coupled with the announcement of new openings from the "pipeline" they mentioned we could be in for a treat here.Atb|
|Good to see someone else looking at this, the strong UK economy and rising consumer confidence, combined with lower food prices should mean excellent profits here..........bargain..|
|Interesting one this. Expecting a positive trading update.Bargain price IMO|
|Really good to see other day of volume, rally on....|
|Better volume here, let us hope this gets squeezy on the upside........|
|Watching and waiting, does anyone else look at this bargain..??|
|Spotted the branch and it was mentioned in the BBC Mayfair programme..!!|
|All quiet but stock remains very well bid........|
|Would be nice for the company to give us a trading update following year end..........|
|I cannot help but think the mm's are short on this stock.............|
|I think it would be in everyone's best interests if Cenkos as adviser, got more proactive in marketing this stock, I cannot even find a forecast..??!!|
|Another director purchase would show confidence..!!??|
|Cenkos traded yesterday's volume, still only 5- on the offer......|
|Looks like a nice buy ticked through...move up soon I would have thought.........|