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RNS: Basically .. "keep your powder dry!"
The board have doubled down and are hanging their hat on the results date, and fully expect the report to be a massive "told ya so " moment .
I'm 100% sure there will be some smug faces on March the 8th!
They make some good points. I doubled up. Hopefully it will have the desired effect and then they get themselves over to COST!
Absolutely savage, and a bit more realistic than their first effort. Its hard for the BOD to defend this one. For those who haven't seen it..
https://www.businesswire.com/news/home/20230220005169/en/Oasis-Reaffirms-its-Position-and-the-Need-for-Change-at-The-Restaurant-Group
Time to put your house on it (subject to PUTIN on the 24th) things are hotting up for a quick 2x or even 3x gain!
Obviously the board must be confident of the coming results and strategy going forward I am expecting share price to move up before the day.Good luck all
Pretty savage press release by oasis today. Will be interesting to see how the boars respond.
There's no denying the share price performance has been abysmal - I tend to agree with Oasis that a shake up is required. Clearly there's resistance at the top, as you'd expect in these situations. An activist investor, imo, is a good thing. When the share price is languishing and the company doesn't appear to have much of a clue how to reignite interest, sometimes it needs someone with clout to go in there and not be afraid to ruffle a few feathers in an attempt to turn things around.
Just seen it as massive buying opportunity... so for me its a win win
I was thinking the same. Teddies fully out of the pram.
Is this Oasis exiting their position ?
Well added few more again today soon see if Numis 12 month 68p target sees the light of day.Will Oasis decide to up there holding but looking forward to a positive results day.
Agree with RTN’s stance. Oasis has just spit their dummy out of the pram. I’m not disagreeing that Oasis may have had one or two points valid for discussion but certainly not to go crying in public.
Oasis shot them selfs in the foot yesterday as TRG we’re going to drop the trading report on the market with no warning to see how investors would react
@GiantSquid - looks like your post about Oasis seems to be playing out.
Added back again today after a tidy little profit last time from the boards response looks like there maybe some positive results good luck
Good response from the board. What Oasis do next will be interesting and it might reveal their game plan! At double the current MC RTN would still be a bargain.
RNS:
LOOKS LIKE THE BOARD DONT AGREE EITHER!
3. THE GROUP'S OPERATING PERFORMANCE HAS BEEN RESILIENT
The COVID global health pandemic and the current cost-of-living crisis have created huge challenges for the UK Hospitality industry and this has been reflected in TRG's share price. However swift and decisive management actions taken during COVID were viewed as having successfully guided TRG through an extremely challenging period.
The operational performance of TRG since COVID has also been strong when compared to the wider UK Casual Dining sector (the majority of which is privately owned):
· Wagamama has continued to trade extremely well over the past three years as indicated by its consistent market outperformance on sales and leading customer ratings
· Our Pubs business ("Brunning & Price") has delivered exceptional market out-performance on sales and consistently strong customer ratings
· Our Leisure business has been carefully restructured to maximise cashflow
· Our Concessions business has been successfully re-sized and is well placed to benefit from strong earnings growth as air travel continues to recover in 2023 and 2024
In addition to this resilient operating performance, TRG announced in December 2022 a long-term debt re-financing for the next four years with flexible covenant arrangements and the ability to make further repayments as appropriate. This is hugely important in a casual dining sector where debt financing has proved difficult to achieve since COVID.
RNS:
LOOKS LIKE THE BOARD DONT AGREE EITHER!
· The TRG Board always welcomes constructive dialogue with our shareholders and will continue to engage with Oasis along with our entire shareholder base with the common goal of delivering shareholder value
· The Board continues to examine options to ensure that the strength of the Group's operating performance generates shareholder value
· TRG looks forward to announcing our full year results on 8 March 2023. This will provide an opportunity to update shareholders on 2022 results, current trading and our medium-term strategy
· TRG's management team will be meeting with our major shareholders following the results in March and our Chairman will be offering major shareholders the usual opportunity to meet prior to our AGM in May
Numis broker rating of 68 and buy even this doesn't seem to turn the stock positive !!
The results on the 8th March will hopefully contain forward looking positive statements.
I think the frustration is the lack of 3rd quarter and end of year trading update.
I see it as a positive as if they have missed forecasts etc they are obliged to inform the market.
Do not know who they are comparing with and over what period but a lot of companies in this sector are considerably down also! I am with you re board and think they have been responsive to a challenging enviroment. This is not the time to offload assets e.g. concessions which should be starting to fire on all cylinders, as the price would be way under that achievable in a bouyant market. Hopefully the next update will sooth nerves!
"However, it noted that despite the "considerable value" of these assets, TRG has one of the worst-performing share prices of any UK leisure company, materially worse than its closest peers, and "disproportionately worse than what the impact of the challenging sector backdrop would alone justify. The poor shareholder experience of this long-term decline in market value is further exacerbated when taking into account the company's three equity raises since 2018, with proceeds totalling £547m, it said.
Oasis pointed out that since the close of the latest of these rounds in March 2021, the share price has dropped around 65%, reducing the company's market capitalisation to around £265m, just half of the combined proceeds raised.
Since the close of the first raise in 2018, used to fund the acquisition of Wagamama, the share price has plummeted around 70%, it added. Oasis put the share price decline down to group level decision-making and failure of oversight by a board that has lost focus on long-term value creation and its alignment with the shareholder perspective".
I don't necessarily agree with Oasis that its a board problem . The board have all bought in the open market and are running a tight ship. I do believe RTN is grossly undervalued to the tune of 70% by sentiment and when sentiment changes so will the price. Economic headwinds have pushed the valuation low due to borrowing for lockdowns and consumer fear and uncertainty on gov policy regarding inflation.
RTN are in a coming to the end of closed period now with final edits likely taking place on year ends, so I'm not sure why Oasis would release this statement now?
Hopefully the report comes out and says all the things expect to hear, and its timing doesn't coincide with a REALLY bad news day..
Lol I thought that. However IMO RTN is a great investment. Brunning & Price and Wagammas are great brands, just need to divest F&B and Chiquitos. Seem to have a good level of Free Cashflow too.
This aged well >>> eyeroll
Heading back towards where we should be right now after a few world wide curve balls last week.
Fingers crossed Vlad keeps his powder dry on the 24th of Feb. If he escalates I feel any announcements, however good, will be lost on the market.