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Market Cap

UK£303.1m

Last Updated

2021/05/07 20:14 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Earnings are forecast to grow 92.55% per year

Risk Analysis

No risks detected for LGRS from our risk checks.


Snowflake Analysis

High growth potential with adequate balance sheet.

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: LGRS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LGRS's weekly volatility has decreased from 9% to 3% over the past year.


Market Performance


7 Day Return

0%

LGRS

1.5%

GB Hospitality

2.1%

GB Market


1 Year Return

226.0%

LGRS

49.1%

GB Hospitality

26.6%

GB Market

Return vs Industry: LGRS exceeded the UK Hospitality industry which returned 45.8% over the past year.

Return vs Market: LGRS exceeded the UK Market which returned 25.5% over the past year.


Shareholder returns

LGRSIndustryMarket
7 Day0%1.5%2.1%
30 Day13.9%1.1%3.6%
90 Day26.1%12.1%9.6%
1 Year226.0%226.0%52.7%49.1%32.1%26.6%
3 Yearn/a15.2%4.7%12.8%-0.2%
5 Yearn/a42.2%20.3%51.8%23.0%

Long-Term 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

Valuation

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

2.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LGRS (£2.95) is trading above our estimate of fair value (£0.72)

Significantly Below Fair Value: LGRS is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LGRS's PB Ratio (2.5x) is in line with the GB Hospitality industry average.


Future Growth

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

92.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGRS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: LGRS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LGRS's is expected to become profitable in the next 3 years.

Revenue vs Market: LGRS's revenue (22% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: LGRS's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Loungers performed over the past 5 years?

-24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGRS is currently unprofitable.

Growing Profit Margin: LGRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LGRS is unprofitable, and losses have increased over the past 5 years at a rate of 24.2% per year.

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

Earnings vs Industry: LGRS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-80.6%).


Return on Equity

High ROE: LGRS has a negative Return on Equity (-8.61%), as it is currently unprofitable.


Financial Health

How is Loungers's financial position?


Financial Position Analysis

Short Term Liabilities: LGRS's short term assets (£29.4M) do not cover its short term liabilities (£46.3M).

Long Term Liabilities: LGRS's short term assets (£29.4M) do not cover its long term liabilities (£137.0M).


Debt to Equity History and Analysis

Debt Level: LGRS's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: LGRS's debt to equity ratio has reduced from 527.2% to 32% 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 LGRS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LGRS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 72.9% per year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LGRS'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 LGRS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LGRS'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 LGRS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Nick Collins (45 yo)

6.33yrs

Tenure

UK£1,732,000

Compensation

Mr. Nicholas Charles Elliot Collins, also known as Nick, ACA has been Chief Executive Officer of Loungers plc since January 2015. He joined the Group in January 2012 as Finance Director, becoming Chief Ope...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD2.40M) is above average for companies of similar size in the UK market ($USD723.12K).

Compensation vs Earnings: Insufficient data to compare Nick's compensation with company performance.


Leadership Team

Experienced Management: LGRS's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: LGRS's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Loungers plc
  • Ticker: LGRS
  • Exchange: AIM
  • Founded: 2002
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£303.079m
  • Shares outstanding: 102.74m
  • Website: https://www.loungers.co.uk

Number of Employees


Location

  • Loungers plc
  • 26 Baldwin Street
  • Bristol
  • BS1 1SE
  • United Kingdom

Listings


Biography

Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brands in England and Wales. As of April 19, 2020, it operated 165 sites, including 136 Lounges and 29 Cosy Club cafés, bar...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 20:14
End of Day Share Price2021/05/07 00:00
Earnings2020/10/04
Annual Earnings2020/04/19


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.