Loungers (LGRS)

Sector:

Tourism and Leisure Services

Index:

FTSE AIM 100

284.00p
   
  • Change Today:
      2.00p
  • 52 Week High: 286.00
  • 52 Week Low: 182.50
  • Currency: UK Pounds
  • Shares Issued: 103.83m
  • Volume: 68,238
  • Market Cap: £294.87m
  • RiskGrade: 184

ShoreCap starts Loungers at 'buy'

By Michele Maatouk

Date: Tuesday 16 May 2023

LONDON (ShareCast) - (Sharecast News) - Shore Capital initiated coverage of Loungers on Tuesday at 'buy' with a fair value of 300p, referring to the company as a "high-quality" business.
ShoreCap said the group exhibits "exceptional and consistent" cash returns on invested capital per site of over 30% and in its view, "has the runway to replicate these returns on an estate more than double today's size".

"We argue that: (1) the structural shift towards hybrid working, (2) evidence sites can achieve more than 30% CROIC (cash return on capital invested) in multi-site cities and towns with less than 30k population (3) significant capacity withdrawal in the hospitality sector and, the group's hyper-localisation and refurb strategy are all supportive of high-quality site replication," it said.

"At 195p and on a 5.5 EV/EBITDA (pre-IFRS) we do not believe these qualities are reflected and in fact we believe the market has effectively priced a whole peak of trade dropping out, or in other words a robust deterioration of site returns to a level of circa 22%."

Shore said this is unrealistic given the strength of current trading, supportive secular trends and measures in place to control costs.

"At our fair value of 300p, the group would trade on a CY23F EV/EBITDA of 8.5x (pre-IFRS) and thus be more in line with operators Greggs and Tortilla which yield a similar CROIC per site of over 30% and exhibit an equally compelling growth story," it added.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Loungers Market Data

Currency UK Pounds
Share Price 284.00p
Change Today 2.00p
% Change 0.71 %
52 Week High 286.00
52 Week Low 182.50
Volume 68,238
Shares Issued 103.83m
Market Cap £294.87m
RiskGrade 184

Loungers Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
77.95% below the market average77.95% below the market average77.95% below the market average77.95% below the market average77.95% below the market average
76.92% below the sector average76.92% below the sector average76.92% below the sector average76.92% below the sector average76.92% below the sector average
Price Trend
87.24% above the market average87.24% above the market average87.24% above the market average87.24% above the market average87.24% above the market average
96.36% above the sector average96.36% above the sector average96.36% above the sector average96.36% above the sector average96.36% above the sector average
Income Not Available
Growth
10.63% above the market average10.63% above the market average10.63% above the market average10.63% above the market average10.63% above the market average
49.02% below the sector average49.02% below the sector average49.02% below the sector average49.02% below the sector average49.02% below the sector average

Loungers Dividends

No dividends found

Trades for 12-Jul-2024

Time Volume / Share Price
16:39 744 @ 283.00p
16:39 744 @ 283.00p
16:36 744 @ 284.00p
16:35 3,000 @ 284.00p
16:35 3,000 @ 284.00p

Loungers Key Personnel

CEO Nick Collins
CFO Stephen Marshall

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