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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Loungers

June 2024

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:
  • 266p
The shares spiked to a new high of 266p after casual dining chain Loungers’ update guided FY’24 expectations higher due to buoyant trading. Revenues rose almost 25% to £353.5m which equates to 22.2% year-on-year on a 52 week basis. Like-for-like sales grew 7.5%, so no recession here! Loungers is ahead of plan with its expansion, too, adding 36 sites (against 34 targeted). Even with that outlay, net debt only rose from £6m to £9.7m.   Liberum says, “the scope of the roll-out remains vast (600 store target from around 270 today) but is not reflected in the 7.7x EV/ EBITDA”. Its price target is 400p. I am a buyer. ...

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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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