Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Mary you still holding this one?
Fortunate you, enjoy your time there.
Yes, think it's got a long way to go ... up.
This share often gets overlooked. I am expecting 350 by Thanksgiving.
I am off to the Hamptons :)
up about 20p since 14:00.
This is most likely to recover lost ground quickly if the reopening holds and gathers pace.
Not a recommendation, but surely the green light buyers are waiting for?
DYOR
The haven that is airports is right nad ripe for rip off prices.
Surrounded by others screaming kids, baggage overcharges, long queues and waits. I would pay any price for 60 minutes sanctuary. That is priceless.
We have an Artisan coffee shop who charges £11 for a sachet of Columbian coffee, £25 for a trio of 3 one cup sachets and yet people will pay.
The issue for SSPG is the sirport reopening but it is gaining momentum and people have money in their pockets (well the travellers presumably.
This share will rocket at some point once more certainly returns, have no doubt about that, even if it is from a lower base.
I am adding and will continue to do so near £2.
One of the biggest problems with SSP is that they really don't seem to be living in a real world.
James Martin's Kitchen at Manchester Piccadilly charges £4.29 for a vegan sausage roll!
There's a Greggs just outside the station where it is £1. Ok, not fully comparable but the JMK sausage roll is not worth over four times of the Greggs!
I could give other examples. Someone said that these are low margin products. I don't think so. Margins are sky high but if people are not actually prepared to pay the prices it doesn't matter, they are still struggling.
I hate to imagine the waste SSP generates.
I have quite a few shares and I'm not prepared to sell at the current value. However, I think that the management needs to take a good look at the products and the prices they are charging. I don't think that their products are bad. They are just so much over-priced that people go elsewhere.
Yes big change - SSP taken a bigger impact than most but decent recovery today in line with recovery stocks. This share has been a bit of a basket case since RI both up and down which is surprising as not a heavily shorted stock.
Well, I got that very wrong! What a difference a month makes!
I got out at 3.22, but I’m now very tempted to get back in.
GLA
SSP taking some punishment atm but should def have enough cash to see out this summer delay on holidays as RI factored in worst case 2021 scenario.
Could be a long road back but in next year or two this will come back reasonably and if I wasn’t so exposed to travel sector would top up.
The NMW went from £8.72 to £8.91 in April, which is 2.2% (though there will be a pension/NI hit in addition). Granted wage increase is a big hitter for the industry, and I'm sure they will use the recent mass redundancies to reduce staffing levels by not rehiring fully when revenue is back on track. Prepare to wait a while to be served a bad product ;)
The point about low quality brands is true but consider they franchise big names like Starbucks, Burger King, Leon, M&S. Also the growth between 2013 - 2018 shows their profit margins and internal efficiency savings have been great.
I'd say the big risk is pricing themselves too high for locations (a big strength was captive markets), and that travel volumes will be hit long-term by blended/hybrid/home working. Their recent expansion into motorway service areas and the international undertakings are likely to flourish, whilst the UK rail/airport sectors fall behind. Let's hope they balance out and the share price recovers a bit!
This was an incredibly low margin business at the best of times. Add in lower travel volumes and an inability to recruit and you have a long term structural nightmare. Wages are rising 10 % per annum and even then staff are impossible to recruit. Hard to be optimisitic for a company with low quality brands.
210 if dire summer/autumn and maybe more funds needed.
370 probably eventually, sometime :)
Idiots, others have it at 370!
Target price of 210p
Credit Suisse ... reiterates underperfom
Long-term opportunity at SSP, says Shore Capital
SSP (SSPG) may have to wait until 2024 for sales to return to pre-pandemic levels but Shore Capital says in the long term the food-on-the-go sector will boom.
Analyst Greg Johnson reiterated his ‘buy’ recommendation on the stock after the owner of Upper Crust and Ritazza reported a dramatic rise in losses to £300m in the six months to 31 March, from £34m a year earlier. The shares closed down 1.9%, or 5.8p, at 302p on Wednesday.
‘Based on a recovery of pre-Covid-19 passenger volumes and a return to historic growth trends, the global travel foodservice market could be worth some £30-35bn by the end of the decade,’ said Johnson.
‘Were the group to increase its market share towards 20% it could equate to annual revenues of £6bn, sharply above our long-term modelling assumptions but not necessarily out of kilter with its historic track record.’
seems to be decent buying before tomorrows update
Thanks, good info, i am still puzzled about the constant weakness within the travel sector which has been recently well supported despite the uk govt extreme wariness.
Peel Hunt upgrades SSP after weakness
Broker Peel Hunt has upgraded food-on-the-go group SSP (SSPG) due to its ‘long-term attractions’.
In a note ahead of interim results on 9 June, analyst Douglas Jack upgraded his recommendation from ‘hold’ to ‘add’ with a target price of 350p on the owner of Upper Crust, which closed up 3%, or 8.9p, at 303p on Tuesday.
‘In the first half, the profit drop-through from lower sales should have been 22%, whereas our full year forecasts assume 26%,’ he said.
‘This is supportive of forecasts but, with units requiring sales to be 50-60% of pre-pandemic levels to generate positive EBITDA, much depends on UK and continental Europe travel in the second half.’
Jack said there were ‘growing long-term attractions’ and upgraded following a recent decline in the shares.
‘We believe recent weakness should be used by long-term buyers noting that SSP should benefit from enhanced expansion opportunities and the long-term retention of recent cost savings,’ he said.
Thanks for your response. Good info.
Tends to follow the leisure market. Expect this to ramp up as travel restrictions reduce internationally and the virus comes under control. It’s exposure globally is why it’s recovered slower than other travel operators
Hi all. Been watching for a while. Why this drop to near £3? Is this a good buying opportunity or are we going to see sub £3 pretty soon? Any thoughts very welcome. Good luck all.
Just a great stock to trade with outsized daily moves and so much s-t upside before profit taking sets in.
Webba, you say " spend is materially lower for business traveller than the leisure brigade." - do you have any sources for that?
I'm still going over whether I want to stick with SPG long term (I'm expecting more of a bounce as things continue to open up short term). There is going to be less business travel in the future, and I'm not convinced that this won't have a meaningful impact on SPG's numbers.
I used to fly semi-regularly with work. We would fly economy / premium-economy, but be able to expense any spend on food/drink at the airport (with a limit high enough that effectively we could have whatever we wanted). I was happy because I could eat / drink whatever I wanted on the company's dime - rather than being stuck with whatever the lounge was offering - and the company saved money by not paying for business class. I have no idea now common this model is, but it seems pretty reasonable to me.
Your point on the rights issue is interesting. I understand the airport food business is highly framented, and some of those smaller businesses will have been struggling, giving a good oppurtunity for SPG to make some aquisitions. However, when we're talking about a bigger piece of a smaller pie, it's hard to know if it ends up being an improvement overall!