Loungers Share Discussion Threads

[seatank8300] 03/11/2021 10:36:43

hxxps://www.investormeetcompany.com/investor/meeting/introduction-to-loungers

Very positive investor update video, accessible via the above link

[seatank8300] 03/11/2021 10:36:38

hxxps://www.investormeetcompany.com/investor/meeting/introduction-to-loungers

Very positive investor update video, accessible via the above link

[alphabeta4] 15/10/2021 08:02:56

Nice update - has driven a new Liberum note with sales now at £222m from £216m for the current year and a big eps upgrade 11.3p to 13p from gearing effects. Have upped their target £3.50 to £3.75.

[igbertsponk] 17/6/2021 10:08:47

Clever bunch running this. Amazing growth.

[alphabeta4] 17/6/2021 09:51:50

Nice little update today, Liberum added £4m to FY22 sales (now £211m) and upped target price £3.30 to £3.50 as a result.

[tomps2] 28/5/2021 13:58:18

piworld interview: Ken Wotton’s Investing Principles talks about Loungers (LGRS) at 20m43s

Watch the video here:

Or listen to the podcast here:

[sphere25] 10/12/2020 10:19:27

Notable insider selling continues with a large dump here. Joins some of the others mentioned recently:

TRN
JDW
AJB
AFM
LUCE
WINE
IGR
G4M
888
NXT
GYM

Naturally if the valuation has rallied back near pre-covid highs, the expectation to deliver is significantly higher than others considering where the reset point of prior expectations were.

It would appear that insiders selling large amounts of shares isn't sending the strongest signal of confidence on either valuation or delivery in the next 12 months at least.

Clearly if you're looking out to 3, 5, 10 years and more it won't matter as much, but it's interesting to note who is selling in size and in which sectors.

Opinions downgraded to one pennies worth
DYOR

[zztop] 02/12/2020 11:24:32

Poss seen peak share price much uncertainty going forward in this industry Very sad

[dogsoggy] 10/11/2020 14:48:56

Bit quiet on this new board.Going along nicely I must add!

[alphabeta4] 06/11/2020 16:41:43

I'm conscious I've been a bit quiet of late, but I have been busy doing a number of calculations in the background. Early October I went through LGRS site list and was able to estimate 18/138 LGRS and 4/29 Cosy Clubs were impacted by restaurant restriction/ closure of North East, North West and Scotland (look to have zero in Scotland) and Wales so c17% of the group.

For the complete closure following the 31/10 announcement I had cash burn of £480k a week from a previous note (I can't remember if this was from my note or theirs) so around £2m of net debt for 4 weeks. Compared with Liberum £26.9m net debt estimate and the chunky headroom looks to be fairly trivial, but I guess with 102.4m shares in issue you could say this is worth a 2p cut in the target price.

With the 31/10 closure announcement the shares took a knock with the rest of the sector, the bid dropping from 140p to 128p so around 10%. Curiously though most of the other peers (MAB, JDW, MARS) are now trading at either the same or 5% above the 30/10 close but not here. I can only assume the spread has put people off helping cement the valuation anomaly.

With the underlying trading here, limited impact from initial closures / restrictions, solid looking financials, fact that some competitors will never reopen and advances in the science IMHO I think there is at least 25% available here in short order so this afternoon have added to my position, now c3.5% of my portfolio.

[thewheeliedealer] 27/10/2020 20:17:21

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion includes LGRS. We also chatted about loads of other Stocks and Ideas for research, and the outlook for Markets and as usual a fair bit of educational stuff with regards to Investing which this week included the concept of ‘Badwill’ and a lot on how we seek out ‘under the radar’ stocks.

Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 34) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[energeticbacker] 16/10/2020 16:59:17

Loungers issued a better than expected trading update.

Investor’s Champion comments that the shares rose 9% on the news although they still remain 43% down on year highs.

[adamjlewis] 06/10/2020 06:55:05

Alphabet I read your informative posts with interest, keep them coming. I bought into loungers as I have similar style bars which have suburban locations and our results since reopening have been strong. Loungers is IMO best placed out of all quoted stocks, due to locations and all day offering. We will see

[igbertsponk] 01/10/2020 10:57:38

Company have written to their landlords proudly (rightly so) telling them they're paying the September quarter's rent on time.

[alphabeta4] 01/10/2020 09:03:56

Thanks Tole, good to know I'm not talking to myself :)

[tole] 30/9/2020 17:15:21

Well done. Good timing with today's rise.

[alphabeta4] 29/9/2020 10:04:31

Not sure if talking to myself but FWIW I have rebought my trading shares. Post 16/9 £1.78 to £1.40 drop far to steep IMHO compared to 5-8% for JDW/MAB/MARS/RTN. Have put a small short on MAB at £1.40 as a partial hedge (as MAB up 20% from lows but heavily indebted so would be more impacted by temporary closures).

Edit - also just checked and no Lounges are in the North East or London!

[alphabeta4] 18/9/2020 09:26:26

Tipped in The Times:


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

[alphabeta4] 16/9/2020 09:53:55

Liberum target upped to £2.20 (from £2)

Loungers has reopened its sites earlier and recovered faster
than the competition, exceeding even management’s
expectations with LFL sales growth of +30%. This,
combined with careful cash management, puts it in a strong
position to resume its roll out and get back to its target of
opening 25 sites pa within months. We upgrade FY21E
EBITDA forecast from £2.1m to £9.9m and FY22E from
£22.6m to £24.0m based on a cautious scenario, reflecting
general regulatory/Covid uncertainty, but with full
confidence that the company will continue to outperform.
TP 220p (from 200p).

[alphabeta4] 16/9/2020 08:30:39

29.9% LFL - Wow.

[zztop] 16/9/2020 07:57:18

Positive move today on spectacular results

[alphabeta4] 02/9/2020 11:59:10

Well called Tole.

This was an absolute steal 4 weeks ago, completely under the radar. Still good value to c£1.88 by my calculations based on relatively flat LFL supported by the Eat Out To Help Out deal. Seems they're in the perfect suburban locations benefiting from the current change in consumer habits.

[tole] 26/8/2020 10:42:03

A few big trades going through. Hopefully that will clear the way to move upwards.

[zztop] 12/8/2020 16:50:04

My local lounge said extremely busy on food

[nimbo1] 05/8/2020 11:44:38

I bought a few this am. good update I thought.