Loungers Share Discussion Threads

[edmonda] 08/10/2024 07:33

"Come rain or shine, Loungers delivers" - new note with audio summary here:

Loungers has achieved record 1H25 revenues of £178.3m, +19.2% on 1H24. 16 new Lounge bars and one new Cosy Club, together with last year’s new sites, contributed 14.5% whilst 4.7% LFL sales outperformed industry growth by over 3% due to Loungers’ all-day attractions.

This growth is especially strong considering the unseasonal weather, the negative impact of the Euro 2024 football tournament and the fall in UK consumer confidence.

Although our 2H25 estimates look cautiously set, inferring c.3% LFL and c.10% new site revenue growth, we make no changes to our FY25E forecasts at this stage, given the consumer uncertainty ahead of the Autumn Budget on 30 October.

The 273-site group still has huge scope to grow towards its ambition of over 650 sites, driving 14% CAGR in Revenues, and 21% CAGR in Adj. EPS FY24-FY27E. We believe this high growth is not reflected in the group’s valuation and reiterate our Fair Value of 370p / share (8.0x cal. 2025 EV/Adj. EBITDA).

[1choip] 01/10/2024 10:41

Hope no another like more

[shbgetreal] 12/8/2024 10:41

Sell up then bub

[1choip] 09/8/2024 14:30

Over valued at 270s.

[shbgetreal] 18/7/2024 09:30

Your last comment re: this going to 260 soon has mysteriously disappeared.

[shbgetreal] 10/7/2024 09:13

Why pay a dividend when they are clearly on a roll-out?

[1choip] 09/7/2024 08:26

Net debt gone up and without dividend

[edmonda] 09/7/2024 08:21

"All-day strategy success, with more to come"

Loungers’ FY24 results illustrate the strength of its all-day café-bar model with record FY24 revenues increasing 25% to £353m and Adj. EBITDA (pre-opening costs) rising 26% to £59.6m, 1% ahead of our, and consensus, estimates. The group’s growth strategy is on track with continued food innovation, 36 new sites (and some record-breaking sales) and an expanded regional management structure. Meanwhile, whilst we make no significant changes to our recently upgraded forecasts, current trading of 5% LFL sales growth in the last 11 weeks and seven new Lounge openings, is very encouraging.

We initiated on Loungers earlier this year, detailing why its profitable model and self-funded growth was undervalued (see “Loungers: Delivering self-funded growth “all day” long”). The 257-site group still has huge scope to grow towards its ambition of over 650 sites, driving 14% CAGR in Revenues, 15% CAGR in Adj. EBITDA and 21% CAGR in Adj. EPS FY24-FY27E. Whilst Loungers’ share price has rallied 35% since March, we believe this high growth is not reflected in the group’s valuation.

We reiterate our Fair Value of 370p (8.0x our calendar 2025 EV/Adj. EBITDA).

Link to research report:

[1choip] 05/7/2024 08:39

Another £487k buy!

[edmonda] 04/7/2024 16:28

Save the Date! 12th July - Investor Presentation (sign up below!)

Loungers plc (LSE: LGRS), a leading operator of all day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands, will be hosting a live investor presentation relating to its preliminary results for the 53 weeks ended 21 April 2024 at 1.00pm on Friday 12th July.

The presentation will be hosted by Nick Collins, CEO, and Stephen Marshall, CFO.

The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.

Link to register:

[1choip] 04/7/2024 08:31

Did someone buy 500k shares at 11.59 yesterday?

[1choip] 03/7/2024 07:31

Next rns due on 9 July.

[loungeral] 28/6/2024 10:39

M&B have £1b of debt - LGRS have virtually no debt.

[darrin1471] 25/6/2024 18:09

MAB growth vs LGRS growth?

[1choip] 25/6/2024 12:33

Mitchel Butlers market cap is equalled to 70% of yearly turnover. How about lgrs?

[1choip] 18/6/2024 08:33

Currently valued at 6.7x ebitda. It's too much.

[1choip] 04/6/2024 11:53

Slip back to 2.6?

[edmonda] 26/4/2024 10:45

“All day” success, all year round (FY Trading Update)

Loungers has announced record FY24 Sales of £353.5m, up 24.7% and 22.2% excluding the 53rd week. This exceptional performance was 2.7% ahead of our estimate as FY24 LFL sales growth of 7.5% was maintained into the final 21 weeks, outperforming the industry again. Even more impressively, FY23/FY24 new sites contributed c.15% to revenue growth as Loungers’ unique all-day café-bar model continues to attract new customers nationwide, ranging from coastal towns to mixed use retail / leisure schemes. Sales leverage and easing inflation has led to FY24E Adj. EBITDA ahead of expectations and we raise our FY24 Adj. EBITDA by c.3% to £43.5m (IAS 17 metric).

We recently initiated on Loungers detailing why its profitable model and self-funded growth was undervalued. The 257-site group still has huge scope to grow towards its ambition of over 650 sites, driving 17% CAGR in Revenues, 19% CAGR in Adj. EBITDA and 23% CAGR in Adj. EPS FY23-FY26E.

Whilst Loungers’ share price has rallied 10% in the past month, we maintain our view that this high growth is not reflected in the group’s valuation. We raise our Fair Value to 370p, based on 8.0x our new calendar 2025 EV/Adj. EBITDA.

Link to report:

[edmonda] 27/3/2024 16:47

Delivering self-funded growth “all day” long - Initiation

Loungers is an award winning, uniquely positioned all day café-bar group that has grown revenues an impressive 22.5% CAGR FY16-FY23. Comprising of Lounges, Cosy Club and Brightside, the 257-site group still has huge scope to grow towards its conservative ambition of over 650 sites.

Loungers is profitable with improving margins and we forecast will generate over £100m free cashflow (pre-expansion capex) FY24E-FY26E. This, we estimate, will fully fund c.100 new site openings over the next three years driving 16% CAGR in Revenues, 18% CAGR in Adj. EBITDA and 20% CAGR in Adj. EPS FY23-FY26E.

This high growth is not reflected in the group’s valuation, in our view. We initiate coverage with a Fair Value of 360p, based on 8.0x cal 2025 EV/Adj. EBITDA.

Link to research note:

[alphabeta4] 25/3/2024 14:41

Nice little puff piece in The Sunday Times.

[1c3479z] 07/3/2024 11:44

yngn and lgrs are picks of hospitality according to broker but whole sector is under a cloud of the NLW and no VAT relief in the budget.