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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Hostelworld

May 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • HSW
  • Price:
  • 78p
Full year results showed the ravages of Covid-19 on this online hostel bookings operator with net booking volumes declining 79% to 1.44m and revenue falling 81% to €15.4m. With net average booking value down 22% to €9.33 and cancellations of €6.3m (FY’ 19: €9.3m) it booked an EBITDA loss of €17.3m (FY’19: profit of €20.5m). Hostelworld has reduced marketing and admin costs by 72% and 43%, respectively and lowered monthly cash burn to under €2m in Q4. Liquidity has further improved, as post period end it secured a €30m five-year term loan (9.0% above EURIBOR), which complements cash of €18.2m and a €7m un-drawn loan facility. Encouragingly, the supply of h ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X