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Started: EquityDevelopmen, 26 Apr 2024 10:46
Last post: SeaTank8300, 28 May 2024 21:38
Loungers need to declare a maiden dividend and reliable dividend policy, if necessary by moderating site rollout - that is the next step to actualising shareholder value in my view
Loungers has announced record FY24 Sales of £353.5m, up 24.7% and 22.2% excluding the 53rd week. This exceptional performance was 2.7% ahead of our estimate as FY24 LFL sales growth of 7.5% was maintained into the final 21 weeks, outperforming the industry again. Even more impressively, FY23/FY24 new sites contributed c.15% to revenue growth as Loungers’ unique all-day café-bar model continues to attract new customers nationwide, ranging from coastal towns to mixed use retail / leisure schemes. Sales leverage and easing inflation has led to FY24E Adj. EBITDA ahead of expectations and we raise our FY24 Adj. EBITDA by c.3% to £43.5m (IAS 17 metric).
We recently initiated on Loungers detailing why its profitable model and self-funded growth was undervalued. The 257-site group still has huge scope to grow towards its ambition of over 650 sites, driving 17% CAGR in Revenues, 19% CAGR in Adj. EBITDA and 23% CAGR in Adj. EPS FY23-FY26E.
Whilst Loungers’ share price has rallied 10% in the past month, we maintain our view that this high growth is not reflected in the group’s valuation. We raise our Fair Value to 370p, based on 8.0x our new calendar 2025 EV/Adj. EBITDA.
Link to report: https://www.equitydevelopment.co.uk/research/all-day-success-all-year-round
Started: EquityDevelopmen, 27 Mar 2024 16:57
Last post: EquityDevelopmen, 27 Mar 2024 16:57
Loungers is an award winning, uniquely positioned all day café-bar group that has grown revenues an impressive 22.5% CAGR FY16-FY23. Comprising of Lounges, Cosy Club and Brightside, the 257-site group still has huge scope to grow towards its conservative ambition of over 650 sites.
Loungers is profitable with improving margins and we forecast will generate over £100m free cashflow (pre-expansion capex) FY24E-FY26E. This, we estimate, will fully fund c.100 new site openings over the next three years driving 16% CAGR in Revenues, 18% CAGR in Adj. EBITDA and 20% CAGR in Adj. EPS FY23-FY26E.
This high growth is not reflected in the group’s valuation, in our view. We initiate coverage with a Fair Value of 360p, based on 8.0x cal 2025 EV/Adj. EBITDA.
Link to research note: https://www.equitydevelopment.co.uk/research/delivering-self-funded-growth-all-day-long
Last post: SeaTank8300, 2 Feb 2024 05:06
I suggest you or they email Loungers about it, they are extremely responsive. Also, your friend won't get two unless he asks for two.
A friend has been telling anyone that they meet how in their local Velo Lounge in Bath a single slice of toast with marmite costs £2.95 - and apparently they counted it three times and each time there was just the ONE slice of toast on the plate for which they paid £2.95!!! They assured me that they will NEVER frequent a Lounge establishment ever again.
Now while I love to see Loungers posting great turnover figures and a healthy profit I think turning away customers by charging an extortionate amount for one single lonely slice of toast is not good business, heaven knows how many people my friend has told about the £2.95 slice of toast, but to me it’s not good PR.
Solution? Make the single slice a couple of slices and Loungers will still make a load of profit from that £2.95.
Last post: Troajan, 27 Oct 2023 18:23
Started: goinglarge, 9 Nov 2022 09:26
Last post: Troajan, 15 Oct 2023 17:41
I’m not sure what to make of the roadside announcement :/ I’ve never seen the attraction myself, and they are moving a little outside their success lane, but if they've identified a market gap to fill then I trust this management team to make the most of it. Also, starting with just a few venues rather than trying to take over a larger enterprise gives them time to see if their model will work outside of the town venues. If they get some traction from the first few then push on. Agree I would also prefer to see them stay independent.
Regarding the SP, I suspect the market may be waiting to see the results at the end of the month. Their October TU hailed the sales growth and the success of the roll-out programme but also noted the inflationary pressures without giving any guidance on earnings/margin. Rising costs and outlook will be key in the results IMO; it may now even need a successful start to Brightside reflected in the FY results (due in July; poss. TU in April) or even later before any decent re-rate?
Even with great results and the announcement of moving into the roadside sector the share price does not move. This company will get bought out by one of the big roadside operators, probably Eurogarages at some point. I would prefer to see them flourish as an independent company but nothing they do gets reflected in the low share price
Started: EquityDevelopmen, 12 Jul 2023 08:04
Last post: EquityDevelopmen, 12 Jul 2023 08:04
Loungers has reported record revenue of £283.5m, up 85% on pre-Covid FY19. 29 new sites opened during the year, taking the total to 222 at year end. Excluding the continued estate expansion, like-for-like revenue growth was up 7.4% on the last year, and an impressive industry-leading 17.6% over the last three years.
Inflationary pressures have impacted margins, especially wage inflation, while the results also reflect the end of government Covid-support measures. The adjusted EBITDA margin (IFRS16) was 16.7%, down from 22.6% in FY22 and 18.7% in FY19. However, management reports that inflationary pressures are easing and they aim to restore margins to pre-Covid levels over the medium-term.
Loungers’ continued expansion has allowed it to develop a strong understanding of its optimal locations and density of sites. The group sees longer-term scope for at least 600 Lounges and 50-65 Cosy Clubs across the UK, giving significant headroom for growth from the current portfolio of 195 Lounges and 35 Cosy Clubs. The larger prize remains within the Lounges offering, which continues to push further into the North and the South-East. We also expect the first Lounge in Scotland within the next couple of years.
Brightside, the new roadside dining brand, is up and running, with the first two sites open near Exeter and Saltash, and a third expected to open shortly. Brightside is focused on busy A-roads near towns and has met with largely excellent customer reaction.
LFL sales growth in the first 12 weeks of FY24 has been 5.7%, despite the Easter timing, and new site openings continue to perform very well, achieving record levels of sales.
Brief note here: https://www.equitydevelopment.co.uk/research/record-revenue-and-industry-leading-lfl-growth
Started: livestock, 24 Nov 2022 15:39
Last post: SeaTank8300, 28 Jan 2023 12:11
The numbers speak for themselves. If you want a tasty burger, a cold beer, a well made ****tail, or a decent coffee, at a reasonable price point, then Loungers is the place for you and most of Britain is voting with their feet (in through the door). There's a long runway for further openings across Britain and no interest in London, which is smart. This is a great business. I hope they can keep the cosy culture as they expand.
On Brightside, I see the market for this - it's not just about picking up traffic on long journeys, it's about offering a decent local place for all the above to more rural or semi-urban locations where there is nowhere to go within a 15 minute drive. That's how I see it anyway. If they do a good job with Brightside, I reckon they'll be filled with people, mostly local.
Their long term utilities hedge a couple of years ago was really smart, or lucky. By the time they need to renew this, utility prices will have normalised I reckon. I'm not worried about inflation with these guys anyway - their product is strong enough to manage through it alright.
Just brought in the local lounges in amersham is packed every night
Peel Hunt’s target price is 375p compared to Loungers share price currently of 190p.
https://www.proactiveinvestors.co.uk/companies/news/999338/loungers-undervalued-ahead-of-interim-results-says-broker-999338.html?rel=scroll
Started: bald_eagle, 19 Nov 2022 15:20
Last post: bald_eagle, 19 Nov 2022 15:20
Went to a Cosy club - suggested by my niece - and it was a terrible experience. The service was terrible, waited ages for drinks and could see them waiting on the bar. Awful and wasn't cheap....my niece felt sorry for the trainee waiter and so I was obliged to leave him a tip he didn't deserve. Terrible. Never ever going back....not even if my niece pleads with me.
Hopefully their new 'Little Chef' (LC) mark 2 - another roadside attraction!! - will find a market. I tried the Heston Blumenthal revamped menu on the A303 LC many years ago, was quite good (shame they didn't pursue it)
Loungers not for me based on the Cosy Club experience. Good luck to investors
Started: Troajan, 5 Jun 2022 16:59
Last post: Corryvreckan1, 21 Jul 2022 11:37
Yup, looking good here. Steady expansion of proven model without overstretching, lots of good sites available at suppressed rates just as they are growing further.
Buy/sell split on here today not currently matching actual market - 209.95/2.10 are buys.
At last everyone is waking up to the potential of this company. It appeals to “middle England” customers who are still going out but look for good quality reasonably priced food/drink in nice buildings. Their customers are not under the same financial pressures as customers of Spoonies foe example
As expected, super results and an acceleration in outlet growth. Super cash generation too.
This is a fantastic business: the attractive drinking, dining and coffee environment; the vibe; the value proposition; the fabulous staff. I believe Loungers will offset inflationary forces with delicate re-pricing and redesign of the menu, and economies of scale as the network expands. This is a business with a still long runway. Looking forward to full year results.
Started: David1951c, 25 Feb 2022 11:11
Last post: David1951c, 26 Apr 2022 09:37
Underlying net debt is reduced by £45m to almost nothing and 27 new sites have been opened in last 12 months. Implies a very profitable and fast growing business. Berenberg had a SP target of 390p but that may need updating. The company could be more informative for retail investors. Still believe quarterly updates would demonstrate the outstanding performance and encourage more investors.
Next update in July would be a time to see management expectations for FY2023 and if profits are rising when will a dividend be expected? Significant growth funded out of cash generated is compelling and the only downside is the impact of inflation and cost of living rise.
Another really impressive trading update
Although I am positive on this long term (5 year hold), short term be prepared for further falls as they never update the market. Worth following them on LinkedIn to see the number of openings and the quality of the sites. They are running this as a private company and not updating shareholders. You have to have a lot of faith that their strategy is right. In 5 years we should hopefully double our money
Would be good to get quarterly updates as a matter of course especially with the opening of more sites. Next update on revenue should benefit from new sites. Added 2000 at 250p shown as a sell. Good price.
Started: Bristol87, 17 Jun 2021 08:38
Last post: latpulldown, 23 Dec 2021 16:01
Not believing all the negative Covid stories and think the present Omicron hoohah will peak and subside quicker than some commentators think. In any case Shares magazine has it as one of its "Picks" for 2022 so they should keep a good commentary going. Always on the lookout for new p/f additions.
The results were fantastic and if it was not for all the negative covid stories, I would have expected the share price to increase. This is a 3-5 year hold with potential to double your money. Great brand with a good business plan and unlike Wetherspoons taps into the middle classes who have disposable income to spend
Just me who liked the results?
Checked out the Lounger in Carmarthen recently. Another well ran establishment.
+27% May to October. Briefly popped in a site at Plymouth yesterday and it was rammed on a Thursday afternoon. Nice to see.
+26% 2019 levels end of May & June as restrictions eased. Hoping the demand continues. Surely Loungers will benefit from staycations
Last post: Shirley23, 28 Apr 2021 00:59
Welcome in Bristol. All very quiet in here. Not much chat. But super sp progress over past year.
Like the company and should do well post lockdown. Possibly already priced in but feels like it’s under the radar. GLA
Started: Hypermarlin, 24 Jul 2020 09:48
Last post: JetJock, 16 Oct 2020 08:33
Hope your still holding
@Jetjock - thanks for the info. I have 2% of what you had sold. I'll just sit on them!
Possibly because in the last 10 trading days I’ve sold over 100,000 shares. Still holding 65000 just deciding what is best to do. LGRS is a great solid company but bloody hard to sell shares in volume, long term I think they will do well and I’ll buy back big when the time is right.
Anyone any view on why Loungers is taking an ongoing bath...? Did I miss something?
Last post: Hypermarlin, 5 Aug 2020 11:09
Bailed, but on this morning's rise. Ho hum.
...well I am further and further away from breaking even, and this slow down is going to mean that any form of recovery which might get the SP to 2019 levels is probably going to need all of 2021 trading year to get there and provide the financials for the new normal. I'm reckoning it's time for me to bail out, take the hit and find something else that's going to claw me back 20% than this is...
- Pubs could have to shut in the UK in order for schools to reopen, according to a pandemic expert, as concern turned to a rise in infections among young people.
Graham Medley, a member of the Scientific Advisory Group for Emergencies, said UK government ministers might have to consider closing pubs in England in order for lessons to start again next month.
UK Prime Minister Boris Johnson has previously pledged that both primary and secondary schools will return in September "with full attendance".
But, following Chief Medical Officer Chris Whitty's prediction that the country was "near the limit" for opening up society following the coronavirus lockdown, Medley said a "trade off" might have to be made to ensure full-time education could resume.
The warning came as the prime minister announced a slow down of the lockdown easing, with planned relaxations for the leisure and beauty sectors delayed after a rise in Covid-19 cases was recorded.
When asked whether pubs could have to shut for schools to reopen, Medley, chair of the Sage sub-group on pandemic modelling, told BBC Radio 4's Today programme: "I think that's quite possible.
Started: JetJock, 29 Jul 2020 15:51
Last post: JetJock, 29 Jul 2020 15:51
And it doesn’t shake the SP
Solid positive RNS ..
Started: Hypermarlin, 15 Jul 2020 10:03
Last post: bigbucks7, 15 Jul 2020 10:49
This share has been dropping over the past couple of days, strange?! Must be based on sentiment, realization that bars and restaurants are going to take some time to get back to any kind of normal trading??? Hold for now
Weird. It's not showing a live price on investing.com, HL, or London Stock Exchange, that I can see.
The early signs are that restaurants and cafes will not have the fast bounce back that was hoped for. Especially with talk of a second wave.
Can't get a live quote to sell even 100 shares this morning
Hold til the vaccine is available might be the best hope.
Not entirely sure.. huge buying with no sells last month and the price doesn’t move some small ish sells and the price is dropping!
Anyone - what's happening with LGRS today? I've clearly missed something....
Started: JetJock, 6 Jul 2020 08:37
Last post: JetJock, 7 Jul 2020 20:17
Could this be the week LGRS SP starts to move north.
Last post: JetJock, 28 Jun 2020 09:39
Back and running from the 8th of July. With new sites being planned to take advantage of cheap rents and people working from home/loungers Cosy clubs .. I can’t see how this can’t be game changer for LGRS plus dividends in the future.
Wait toll announcement from Bojo later
Still no movement here! Huge buys coming in
Started: JetJock, 22 Jun 2020 07:20
Last post: mwilliams41, 22 Jun 2020 14:36
It should only tick up to around 175. It will take time for sales to increase before going any further.
The hospitality industry will have the big SP rises now. I am optimistic for £2.50 plus especially with the relaxation of the 2m rule. LGRS effectively will be back to operation normal.
Easily back to £2 in the coming weeks. Solid company with a great management approach.
Coronavirus: Lockdown easing 'on track' - and you may have to register before going to the pub
Last post: mwilliams41, 17 Jun 2020 20:38
Does not quite work like that. It's a good sign though
the volume of buys is far greater than sells and have been for weeks.
Because there are sellers at that price
Ha very true.. just hoping some one can explain why so many buys and the price doesn’t move?
No problem. Patience. Sign of madness talking to yourself!
Started: JetJock, 14 Jun 2020 15:05
Last post: JetJock, 14 Jun 2020 15:05
This is great news for LGRS and should see a return to business sooner rather than later . In turn see a good rise here in the coming weeks. Agreed large seller keeping the price suppressed.
Started: steve305, 13 Jun 2020 14:21
Last post: steve305, 13 Jun 2020 14:21
there must be a big seller here.