Loungers Investors - LGRS

Loungers Investors - LGRS

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Stock Name Stock Symbol Market Stock Type
Loungers Plc LGRS London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 277.50 08:00:00
Open Price Low Price High Price Close Price Previous Close
277.50 277.50 277.50 277.50 277.50
more quote information »
Industry Sector
TRAVEL & LEISURE

Top Investor Posts

DateSubject
18/9/2020
09:26
alphabeta4: Tipped in The Times: https://www.thetimes.co.uk/edition/business/investors-search-for-security-blanket-0vpltjng5 Loungers The coronavirus may have kiboshed the growth ambitions of the majority of businesses in the pub and restaurant sector, but Loungers is increasingly confident of beating its expansion targets (Dominic Walsh writes). Full-year results from the operator of the Lounge and Cosy Club café-bar chains suggest that it has bounced back from lockdown, while the woes of its rivals should offer opportunities to secure top sites in target locations. According to Alex Reilley, 46, the Loungers chairman, both its brands have “barely reached 30 per cent of their potential scale”. While he expects the slightly more upmarket Cosy Club to grow from 30 sites to 100 over time, in the case of the Lounge chain he said that the stated target of 400 sites, up from 137 today, “feels increasingly conservative”. Loungers was founded by Mr Reilley and two friends when they opened their first café-bar in 2002 in Bristol. Lion Capital acquired a controlling stake in 2016 and 18 months ago the business was floated at 200p. Since the reopening of the hospitality sector on July 4, the company’s like-for-like sales have soared by 29.9 per cent, helped by the Eat Out to Help Out discount scheme and the cut in VAT. Excluding those leg-ups, underlying like-for-like sales over the same period were down 1.1 per cent, ahead of the sector, and were in positive territory over the past nine weeks. Those are impressive numbers and, on the basis of what we’ve seen so far, they put Loungers near the top of the sector’s performance league table. So how do Mr Reilley and Nick Collins, his chief executive, do it? First, they open in market towns and secondary suburbs where rents are lower and competition less intense, which in turn means that they can offer value for money. Their all-day format, offering everything from a coffee to a full meal, means outlets appeal to a wide customer base and act as a community hub. Loungers is already back on the expansion trail, having opened two new sites with another four in the pipeline, and, despite fears of fresh lockdowns and curfews, it is confident of getting back to its previous opening rate of 25 sites a year. ADVICE Buy WHY The shares should respond as life normalises
10/5/2019
13:33
alphabeta4: I thought it worth starting a thread on this. It's a recent new issue (29/4/19) that seems a bit under the radar. Analysts originally expected it to be valued at £250m-£300m but it was got away at £185m or £212m including debt. Only institutions could apply. The business has two key brands - Loungers and Cosy Club. Loungers is an all day cafe-bar chain, cosy club more formal bar / restaurants. As at 1/4/19 split is 122 Loungers and 24 Cosy clubs. I've recently had one open near me and I've visited it a few times and found it pretty busy with a diverse range of customers. It isn't a business looking to compete on price but was also not that expensive either. Looking around it felt decent value enough for the drinks and food on offer along with the pleasant interior. I have sampled the food and would do so again. The business is very much at the growth end side of things, (LFL was 6.4% in the 24 weeks to October vs 0.9% for the sector and Christmas came in at 11%). The plan is to open c25 per year. CACI (the planning consultancy) thinks there is the opportunity to grow to 400 Lounges and 100 Cosy Clubs. Proactive investors have the business set to deliver £20m adjusted earnings making for a forward of c10.1 at £2.20 off a business achieving 39% CAGR. That looks very cheap to me, at the time of my research RBG was on 11.2 with a much more uncertain earnings performance and JDW on 17.1 off a far weaker growth profile. Two of the original founders remain (Alex and Jake) and Nick Collins (CEO) and Gregor Grant (CFO) both have 15 years experience in hospitality. Lion Capital has been the largest shareholder since Dec 2016, they did use the issue to sell £11.6m of their holding but remain 38.7% holders. Alex and Jake also reduced around a quarter of theirs but retain c7% of the company each. Lion are now on 6 month lock in, directors 12 months. Overall if they continue to perform IMHO there could be a decent amount to go for here as they build a track record and as awareness of the company grows. As I understand it FUL trades at 21.8 forward and feels a similar successful smaller outfit achieving a decent growth profile. The usual disclaimers apply, the accuracy of the above is on a best endeavours basis and as always DYOR. Admission doc etc: https://loungers.co.uk/ipo-information/ Investor presentation 2/5/19: https://vimeopro.com/instinctifpartners/loungers-analyst-meeting-may-19 Various articles: https://www.proactiveinvestors.co.uk/companies/news/217655 https://www.ft.com/content/a4c637bc-5457-11e9-a3db-1fe89bedc16e https://www.proactiveinvestors.co.uk/companies/news/219016/loungers-raises-83mln-ahead-of-next-week-s-aim-ipo-219016.html https://www.thetimes.co.uk/article/loungers-bar-chain-to-make-aim-its-watering-hole-xkn89j3sn https://www.thetimes.co.uk/article/loungers-finds-cosy-fit-with-80m-float-gwc5737v6
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