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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Hostelworld

October 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:
  • 86p
The rally in Hostelworld shares reflects hopes that the end of the Covid-19 disruption is in sight and the belief that the group has the resources to make it through. Interims showed net booking volumes decline 73% to 0.3m with net revenue down 76% to €2.9m versus  FY’19. Adjusted EBITDA loss was €9.7m (FY’20: €8.3m). More encouragingly, the number of hostels listed on its platform remains fairly intact as closures are quickly replaced by new signings while customer demand is returning in territories where covid restrictions have been eased including the US during Q1 and Q2 and several Southern European markets in Q2.With closing cash €33.7m, after drawing down a new €30m loan secured l ...

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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