Looks like we have our answer on why CEO didn’t buy shares - he’s off already. Less than 2 years in the job and the RNS said pretty much the same as when the CFO left a few years ago - “off somewhere bigger”. Stepping stone company for other roles?
RE: Overvalued. Fair value around 110.16 Jun 2020 23:01
Ok then.
Leverage hasn’t changed, and neither have their leases. IFRS16 just shows what the lease cost is on the BS - if the Board didn’t already know the operating lease commitments number (note 24 in the annual report), then I would be surprised.
Re the refurbishments you haven’t read the half year presentation then - the ones that have been done before and then done again (they call them 2nd generation) are still getting good returns. They also said their new centre returns on net capex are over 50%.
An opinion is fine but the facts should also be shown
They said at their placing that EBITDA was up 18% to end of Feb but suspect March will be down YOY a lot given Covid. Prob still up at EBITDA for the half pre IFRS16 funnies. Cash burn was £1.6m per month at placing - wonder if they have any successes on rent for June QTR. It will then all be about when reopening is.
Positive for me is that the key execs (CFO and CEO) have real skin in the game just over 1% and 2% each - according to the Annual Report. That shows to me that they are supportive of the business and believe in its long term growth.
All other brokers - Investec (house broker), N+1, Berenberg, Shore Capital, JP, Liberum, are strong buy on the same numbers. Does it matter that P Hunt are the brokers for TEG?
Just can’t get to invest in a company where management don’t have a sizeable skin in the game - or as per the Rem report last year, a requirement to do so - and the Exec Chair keeps selling. If it’s such a good investment why keep selling and why aren’t management buying decent quantity? At least the guys at BOWL hold a good value