DB:LP0

Stock Analysis Report

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Executive Summary

Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brands in England and Wales.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Loungers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LP0's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

LP0

2.6%

DE Hospitality

2.7%

DE Market


1 Year Return

-37.7%

LP0

-35.7%

DE Hospitality

0.2%

DE Market

Return vs Industry: LP0 underperformed the German Hospitality industry which returned -35.7% over the past year.

Return vs Market: LP0 underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

LP0IndustryMarket
7 Day4.9%2.6%2.7%
30 Day1.4%-8.2%3.7%
90 Day44.7%25.5%28.3%
1 Year-37.7%-37.7%-33.2%-35.7%2.3%0.2%
3 Yearn/a-48.0%-54.9%4.0%-4.5%
5 Yearn/a-45.4%-56.9%14.9%-0.3%

Price Volatility Vs. Market

How volatile is Loungers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Loungers undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LP0 (€1.49) is trading below our estimate of fair value (€9.28)

Significantly Below Fair Value: LP0 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LP0 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: LP0 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LP0's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LP0 is good value based on its PB Ratio (1x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Loungers forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LP0's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if LP0's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LP0's revenue (8.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: LP0's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LP0's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Loungers performed over the past 5 years?

-26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LP0 is currently unprofitable.

Growing Profit Margin: LP0 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LP0 is unprofitable, and losses have increased over the past 5 years at a rate of -26.5% per year.

Accelerating Growth: Unable to compare LP0's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LP0 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-12.3%).


Return on Equity

High ROE: LP0 has a negative Return on Equity (-2.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Loungers's financial position?


Financial Position Analysis

Short Term Liabilities: LP0's short term assets (£9.5M) do not cover its short term liabilities (£37.4M).

Long Term Liabilities: LP0's short term assets (£9.5M) do not cover its long term liabilities (£126.7M).


Debt to Equity History and Analysis

Debt Level: LP0's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: LP0's debt to equity ratio has reduced from 211.1% to 26% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LP0 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LP0 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 96.6% per year.


Next Steps

Dividend

What is Loungers's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LP0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LP0's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LP0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LP0's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LP0's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Nick Collins (45yo)

5.5yrs

Tenure

Mr. Nicholas Charles Elliot Collins, also known as Nick, ACA has been Chief Executive Officer of Loungers plc since January 2015 and served as its Finance Director. He serves as Director at Loungers plc si ...


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Reilley
Founderno datano data7.03% £10.4m
Nicholas Charles Collins
CEO & Director5.5yrsno data1.4% £2.1m
Jacob Bishop
Founder & Commercial Director18.5yrsno data6.99% £10.4m
Gregor Grant
CFO & Director1.83yrsno data0.18% £260.9k
Justin Carter
Managing Director of Lounge5.5yrsno data0.62% £924.6k
Amber Wood
Managing Director of Cosy Club4.92yrsno data0.029% £42.7k

5.5yrs

Average Tenure

46yo

Average Age

Experienced Management: LP0's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Reilley
Founderno datano data7.03% £10.4m
Nicholas Charles Collins
CEO & Director5.5yrsno data1.4% £2.1m
Gregor Grant
CFO & Director1.83yrsno data0.18% £260.9k
Robert Darwent
Non-Executive Director1yrno datano data
Nicholas Backhouse
Senior Independent Non-Executive Director1.33yrsno data0.014% £20.1k
Adam Bellamy
Independent Non-Executive Director1.33yrsno data0.014% £20.1k
Jill Little
Independent Non-Executive Director1.33yrsno data0.014% £20.1k

1.3yrs

Average Tenure

50yo

Average Age

Experienced Board: LP0's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LP0 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.7%.


Top Shareholders

Company Information

Loungers plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Loungers plc
  • Ticker: LP0
  • Exchange: DB
  • Founded: 2002
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£133.632m
  • Listing Market Cap: UK£148.271m
  • Shares outstanding: 102.40m
  • Website: https://www.loungers.co.uk

Number of Employees


Location

  • Loungers plc
  • 15-16 Lower Park Row
  • Bristol
  • BS1 5BN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGRSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2019
LP0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2019

Biography

Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brands in England and Wales. As of December 4, 2019, it operated 161 sites, including 133 Lounge and 28 Cosy Club cafés, bars, and restaurants. The company was founded in 2002 and is based in Bristol, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 22:06
End of Day Share Price2020/07/03 00:00
Earnings2019/10/06
Annual Earnings2019/04/21


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.