Hotel Chocolat Share Discussion Threads

[energeticbacker] 30/9/2020 09:35

Investor's Champion likes this business but the valuation has always looked too rich to us. While the shares are 35% off historic highs, they are still trading at c35x reported earnings for 2019 when business was flying. The house broker seems oblivious to what is going on in the real world, talking of results ‘ahead of expectations’, which conveniently ignores a host of exceptional items, and considers a chocolate retailer trading at 51x forecast earnings for June 2022 a ‘Buy’. More on the Investor's Champion website.

[soho2] 01/7/2020 10:39

Social distancing is also likely to permanently alter consumer behaviour ...less people in their shops... they better get to grip with a better on line offering if they want to stay afloat.

[rathean] 01/7/2020 08:51

Looks like they've supply problems, a lot of products listed in their website showing out of stock...

[maytrees] 20/5/2020 08:05

Tx both Perhaps a poor choice by myself - I am just out now though

[toffeeman] 19/5/2020 18:45

I agree - I was looking to buy before I read that piece and I shall wait.

[jaf111] 19/5/2020 17:14

Cheaper yes but I still see this as overvalued..... Would only be interested if price close to the recent placing (225p)

[maytrees] 19/5/2020 15:09

Many tx toffeeman. Still the share price is now 275p to buy so rather cheaper than when reported in The Times.

[toffeeman] 19/5/2020 13:37

May 5th - the Times Hotel Chocolat This chocolatier and cocoa grower moved swiftly to raise capital early at the start of coronavirus, bagging £22 million from shareholders in late March to help to fund growth and to provide a buffer against the coronavirus pandemic. Given that the virus took hold only weeks before its busy trading period over Easter, it also seems to have adjusted to life under lockdown. All 125 of its stores in Britain, along with its four in the United States and five in Japan, are shut; social distancing is in place at its packing facility in Cambridgeshire and, after trimming its range, the company has stayed open for online orders only. Hotel Chocolat opened its first shop in north London in 2004. Unlike most chocolatiers, it grows its own cocoa on a plantation that it owns in St Lucia, where it also runs a hotel. As well as operating restaurants and cafés, the company sells accessories including hand creams, body scrubs and lotions. In a trading update yesterday that was light on detail but upbeat, it said that it had experienced strong demand online over Easter, though not enough to offset a material fall in trading because of its store closures. Analysts at Liberum, the house broker, estimate that just over half of the lost shop sales have been made up online. The company also put in place a new £35 million flexible credit facility, £25 million of which was through the government-backed loan scheme. While the facility is in place — it expires in December 2021, but can be repaid early — the retailer cannot pay dividends. It says good things about the popularity of Hotel Chocolat that customers were happy to move their orders online. Nevertheless, Liberum has lopped £17 million off its forecast sales for the second half to £43 million. The broker reckons that it will be lossmaking over the second half of the year and will announce profit before tax and other items of £8.5 million for the full year, against £20.7 million last time. The shares, which had a modest yield when the dividend was in place, trade for an extraordinary 278 times Liberum’s forecast earnings for this year. Up 2½p, or 0.8 per cent, to 332½p yesterday, they are not for this observer. Advice Avoid Why Has responded well but the shares are expensive

[soho2] 19/5/2020 12:48

I'll wait a bit longer to see the impact of Easter (when they make most of their money besides Xmas)... a lot of stock had to be lost

[maytrees] 19/5/2020 11:18

Decided to buy in just now. Their shops should be reopening next month and on-line sales improving as they get to grips with changes required.

[toffeeman] 08/4/2020 13:42

They won't do well on line over Easter - hardly any available stock!

[scooper72] 08/4/2020 13:06

Anyone agree that the price seems to have stabilised and are starting to look like a good long term option - obviously not good to push the boat out too far in the current climate. But wondering if they will do well online over Easter.

[toffeeman] 23/3/2020 19:38

Just read notification that all stores are shut. I expect the 20.30 Boris slot to announce lockdown

[pugugly] 22/3/2020 19:19

Toffeeman - Thanks - U have confirmed my concern - based on that could be much further to fall - Their product wihile excellent is discretionary - If you need the calories from chocolate far better to stock up on branded bars such as Cadbury milk or Mars.

[toffeeman] 22/3/2020 18:32

They will shut all the stores: 1. they are in locations where all around them will be shut 2. They are not food stores but gift shops!

[pugugly] 22/3/2020 18:26

PI'a screwed yet again - evryone who bought in the last year now under water - As IC post 137 pointed out - why do they need the cash - what do the directors know - Anyone know if the retail shops are treated as "food shops" and allowed to stay open or have to close? In either case will be a massive reduction in footfall and leases still have to be funded - Maybe that could be part of the reason for the fund raise? Thoughts?

[sphere25] 22/3/2020 13:05

Interesting news here. Clearly everyone is struggling, but to see the stock effectively halve and then conduct a placing right at the bottom of that price move (lol @ "Placing Price represents a discount of approximately 3.0 per cent to the closing mid-market price of the Company's existing ordinary shares of 232 pence at the close of business on 19 March 2020" ), that smells of desperation or even something more sinister. Perhaps it is fear of the near term future in suring up the balance sheet. This one won't be on the buy list now though - can't be sure there isn't anything very wrong behind the scenes (like Patisserie Valerie) when they carry out a desperate manoevure like this. Everyone has to form their own opinion, but it just smells somewhat off - why take the risk I say! All imo

[soho2] 25/2/2020 16:37

Too expensive for them ... lol

[1224saj] 25/2/2020 16:07

Everybody must be eating chocolate in their quarantined hotel rooms

[rathean] 24/2/2020 10:33

I like HOTC at this price if it wasn't for its exposure to the pandemic. Will wait for a lower entry point imo dyor ofc.