RE: Tempus today26 Jun 2020 18:34
JD Wetherspoon
Debt and a £141 million equity raising gives Tim Martin, the pub group’s founder and chairman, the liquidity he needs, while Wetherspoons is ahead of the curve in ensuring its pubs are “Covid secure” come July 4. Expect him to cut prices to coax customers back through the door, although generating the level of sales necessary to make a decent margin could prove a short-term challenge. Avoid
City Pub Group
A solid start to 2020 was halted by the lockdown, but chairman Clive Watson has been through a few downturns and has acted decisively to cut the cost base. Although rents remain a concern, this is a quality company and a £22 million equity raising has enabled him to cut its bank borrowings by two-thirds. Buy
Revolution Bars
Lockdown came just as Rob Pitcher, the chief executive, was starting to sort out this problem child. A £15 million share placing eased the financial pressure, although this was at a cost of a 42 per cent discount owing to the scale of the issue compared to its £17 million market value. The Covid-19 pandemic threatens to halt the momentum. Avoid
Whitbread
Having handed £2.5 billion to shareholders after the £3.9 billion sale of Costa Coffee to Coca-Cola, Alison Brittain, chief executive of the Premier Inn and Beefeater owner, has reclaimed £1 billion via a rights issue. It may sound bizarre, but it’s a pragmatic move that will ensure the FTSE 100 group emerges as strongly as any company from the crisis and in prime position to take advantage of growth opportunities. Buy
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