Hostmore Share Discussion Threads

[eezymunny] 17/1/2022 08:12

I presume the EBITDA doesn't include rent costs? In which case, quoting it is very misleading to those that don't understand IFRS 16 IMO.

Can't wait for the truth, whole truth, nothing but the truth to be revealed with the next cash flow statement...

[mashman] 14/1/2022 19:38

Took another 5k shares today. IMO opinion Hostmore is currently cheap and well-poised for covid recovery. They are having a field day acquiring new locations at good locations with landlords offering good deals. CEO is experienced and keen to get this party started.

[eigthwonder] 29/12/2021 19:04

Best situation in the sector IMO

[big7ime] 29/12/2021 09:20

Guildford full at 6 yesterday.

[johndoe23] 19/12/2021 16:54

Walked past TGI in Milton Keynes yesterday, packed at lunch time

[mashman] 10/12/2021 10:13

CEO Robert Cook was just on Sky news giving a very bullish review of Hostmores future plans and taking full advantage of the current value of sites.

[big7ime] 08/12/2021 09:13

Excellent update. Once the forced seller is cleared the shares should do well

[valustar1] 04/12/2021 05:19

Year end is 31/12/21. Can not see a date for results. Maybe we will get a trading update in Jan

[theisland] 03/12/2021 08:59

Does anyone know when the results are due for Hostmore? Thanks.

[mashman] 28/11/2021 21:19

Not sure what to do here. Fundamentally it's cheap as, but....

CE Robert Cook has said they were waiting for good deals next year, maybe Christmas has come early?

They are only operating 3 sites so they are not going to suffer great losses there

They are cash-rich and are on the hunt for new sites.

Landlords were offering very good terms before this drop in share price

Strong balance sheet

My conclusion is that they may be in the right place at the right time and acquire their sites on good terms and be ready for the recovery from this fourth, and hopefully final wave of Covid

[plasybryn] 23/11/2021 12:21

Investor Meet Co. currently live presentation. - Robert Cook & Alan. Listen in - Ask Questions.

[davidosh] 22/11/2021 01:25

Just to let shareholders and prospective investors know that Hostmore will be featured on the Mello Monday webinar event tonight, Monday 22nd November at 5.30pm to 9:30pm. There will be over 400 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.
Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.



Programme for tonight

5.30 pm Mello welcome
5.35 pm Company presentation by Cerillion
6.05 pm Company presentation by Insig AI
6.45 pm Educational insights
7.00 pm Company presentation by Poolbeg Pharma
7.30 pm Educational insights
7.45 pm Company presentation by ENGAGE XR Holdings
8.15 pm Mello BASH

[mashman] 19/11/2021 23:21

Sorry meant 1.8m shares

[mashman] 19/11/2021 23:16

Looking forward to the presentation next Tuesday and made a note of that £1.8M two year lock-in. Not that it's much in the scheme of things :-)

[mauricemonkey] 19/11/2021 16:16

I guess everyone missed that they're also in negotiations to buy an in house brand too.

[theisland] 18/11/2021 19:38

Thank you Simon, this was very helpful and I see your point. If I remember well from what I read on the prospectus I think they franchise 63rd+1st as well. In any case it’s a long shot... I’m more interested in understanding the potential for Fridays: any idea at how many sites it would max out? 87 restaurants sound far from saturation to me - of course assuming they are successful in their rejuvenation plan...

[simon gordon] 18/11/2021 17:59

Hi The Island,

I think it's scalable because it's easily and quickly repeatable. If 63rd + 1st is successful, in the first openings, then it can be rolled out to other locations throughout the country.

For example, Post-Covid, Loungers plan to roll out 25 of their Lounge and Cosy Club outlets per anum, one every two weeks. I'm not sure on their payback, but for MORE I think it's c.18 months. If you are rocking out 25 outlets per anum and the capital cost is paid back in 18 months then you keep recycling the profits back until you have a hundred or more outlets. A successful chain can roll out over a number of years until the brand has reached a sensible saturation to its target market.

They've opened three 63rd's so far and if successful they could increase the tempo of the roll out, still early days, it might flop and they kill it.

Fridays they franchise, 63rd I think is their own brand.

I hope that helps a little, I'm thinking and learning all the time like you.

[theisland] 18/11/2021 17:07

Simon, sorry for my ignorance, but could you explain how Hostmore is a highly scalable business? I don’t know the sector well and I have always thought that only if you own the franchise it is a scalable business... if you don’t, like in Hostmore case, when you open new restaurants you have to duplicate most costs. Which are the fixed costs that makes it scalable, could you make some examples? Thanks loads if you take the time to reply! I’m genuinely interested in this opportunity and I’m trying to learn...

[simon gordon] 14/11/2021 10:53

Here's the 'dark kitchen' brand running out of some Fridays outlets via Deliveroo and Just Eat:

Jailbreak Chicken

[mashman] 13/11/2021 20:51

CEO comment last week to the press was that platform is in place and a robust pipeline of sites are already lined up. "good deals to be had' ' offered sites on very good terms by landlords' 'roll up our sleeves because the hard work begins here'
3 sites open, latest in Harrogate.

Bit worried about that Harrogate one, not exactly looking like a prime location....yet

[simon gordon] 13/11/2021 12:04

Maybe in 2023 with the estate at c.100 outlets, c.85 in 2019, and more focus on cost control and less competition they'd be hitting 14m. They do have a growth strategy with Fridays the cash cow to invest in 63rd which could probably be 100+ if it's a hit, still early days. Also they are planning to expand the Fridays brand, probably try and make it a bit more Five Guys with drive ins. Their marketing department are very good. So, for sure you have to pay for a little bit of potential.

I hold TRI and it has forecast free cash of 10m in '23 and it's market cap is nearly 200m and it's not a highly scalable business.

Have you compared MORE to its peers? The argument made by Numis and Edison is that MORE is cheaper than its peers: 6x EBITDA to 11x. I don't have access to notes on Fulham Shore, RTN and Loungers to see.

Cheers!

-

Edited:

According to Edison the forward p/e is 10.5x.

If they start proving up 2022 and expand both Fridays and 63rd then they would probably be on a single digit p/e for 2023.

I don't know what the forward p/e's are for the listed peers. Does anyone know?

[jtourer] 13/11/2021 11:55

I know it wasnt an IPO (before anyone jumps in and corrects me) but it did have an initial share price which it now seems was overly high, just like most of the IPO's of the last couple of years...

[theisland] 13/11/2021 11:39

Hi Simon, thank you for your answer, I think Edison numbers are correct. I did a double counting mistake, my bad... In any case, I’m not so sure that with 140 m market cap it’s such an obvious bargain with 10 m cash generation in a normal year. With all the selling pressure out there, I think it’s possible the bottom has still to be reached. Though For sure it’s a situation to be watched. Just my opinion...