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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Loungers

June 2023

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:
  • LGRS
  • Price:
  • 427p
Momentum continues to run hot for casual dining group Loungers with three-year like-for-like sales (against pre-pandemic comps) improving from 17% in H1 to 17.6% over the full year. H2 alone was +11.8%. The latest menu with much dish innovation has been well received. The group added 29 new outlets (24 Lounges, four Cosy Clubs and one Brightside), plus  three freehold sites were acquired for conversion, yet net debt only rose from £2.6m to £6.2m. The expansion rate will increase to a scorching 35 sites p.a. from FY’24. While sales are running slightly ahead of expectations, Peel Hunt has downgraded EBITDA forecasts by 5% to £49.7m for ‘24 due to higher costs; the bugbear is that while it hedged energy from May 2020 w ...

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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

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