The owner, developer and operator of “super budget” hotels.
Trading Statement For The 12 Months To End September 2017 – The CEO defines this as a “year of accelerated growth” with LFL Revenue for owned hotels increased by 13.7% and for franchised hotels by 8.6%. A lot of talk about added and planned rooms.
I am not a big believer here, in the sector (hotels) or in the ability of this company to turn increased rooms (Revenue) into increased Profits. It may be true that there is “accelerated growth” here, in terms of number of rooms but that’s about it for me.
6-Dec-2017 – 119.5p – £120.1m – PER 227
Final Results For The 12 Months To End September 2017 – A slightly ahead of management expectations set of results. Revenue up 39.7% to £8.42m and PBT down -21.1% to £0.86m. Many opportunities (new locations) have been identified but there’s not enough Cash – The Board is considering its financing options, which may include new equity and debt, to fund these opportunities.
I still wonder about the sector and the ability of this company to turn increased rooms (Revenue) into increased Profits. And a dilution (it seems) on the way – This is still on my Avoid list for now.
19-Jan-2018 – 112p – £112.6m – PER 78.5
Trading Update – Strong trading continues and is in-line with the Board’s expectations.
I am still wary of this sector (with the rise of Airbnb and Booking). For sure I am not interested in paying up for an operator on a PER of 78.5.
11-Apr-2018 – 111.65p – £112.2m – PER 50.1
Trading Update For The 6 Months To End March 2018 – Strong H1 but no mention of inline or not.
It’s cheaper now than last time I looked at it (PER was 78.5). However, I reiterate – I am still wary of this sector (with the rise of Airbnb and Booking) and will not be paying up here, I’m Neutral for now.
23-May-2018 – 128p – £128.6m – PER 72.8
Interim Results For The 6 Months To End March 2018 – Revenue up 51.7% with PBT up 52.5%. FY remains in-line.
I can’t get past Neutral here on a PER of 72.8, I must surely be missing a trick here!
8-Oct-2018 – 101.5p – £148.1m – PER 50.8
On a PER of 50.8 this now looks more reasonably priced (it was 70+ last time I looked) but I will remain Neutral for now.
6-Dec-2018 – 87.5p – £127.7m – PER 58.3
Final Results For The 12 Months To End September 2018 – Revenue up 33.7%, PBT up 1.4%, EPS down -21.4% and the Total Dividend has also been reduced, by -33%. Outlook is “realistic and exciting”.
On a PER of 50+ with a “realistic and exciting” outlook – I would say this is still realistically overpriced.
11-Apr-2019 – 66p – £97m – PER 37.1
Trading Update For The 6 Months To End March 2019 – Revenue up 47% (LFL looks flat), despite uncertainty (mentioned 3 times), expects FY to be in-line with the Board’s expectations.
Half the price it was when I first considered this expensive, it’s still not “cheap” enough to tempt me.
29-May-2019 – 74p – £108m – PER 37.2
Interim Results For The 6 Months To End March 2019 – Revenue up 52.6% (to £7.26m), LBT of -£0.12m (£0.09m PBT last time), Basic EPS down from 0.1p to -0.1p, the Interim Dividend is up from 0.07p to 0.08p. Confident of meeting FY expectations.
Looks like some decent H2 weighting is required to see that forecast 50%+ increase in Net Profit (and EPS) – Still not for me at present.
18-Oct-2019 – 99p – £145m – PER 99
Trading Update For The 12 Months To End September 2019 – Revenue up 56% (owned LFL 7.7%, franchise LFL 1.6%), EBITDA to be circa £4.6m (I think this is a 10% or so miss), some opening delays mentioned too.
Doesn’t seem to warrant the current rating to me.