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LGRS

Loungers AIM:LGRS Stock Report

Last Price

UK£2.07

Market Cap

UK£213.3m

7D

0%

1Y

-29.6%

Updated

06 Oct, 2022

Data

Company Financials +
LGRS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends0/6

LGRS Stock Overview

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

Loungers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Loungers
Historical stock prices
Current Share PriceUK£2.07
52 Week HighUK£3.03
52 Week LowUK£1.80
Beta1.79
1 Month Change0%
3 Month Change13.15%
1 Year Change-29.64%
3 Year Change3.51%
5 Year Changen/a
Change since IPO-4.40%

Recent News & Updates

Sep 02
Loungers' (LON:LGRS) Strong Earnings Are Of Good Quality

Loungers' (LON:LGRS) Strong Earnings Are Of Good Quality

Loungers plc ( LON:LGRS ) just reported healthy earnings but the stock price didn't move much. We think that investors...

May 10
Is Loungers plc (LON:LGRS) Trading At A 38% Discount?

Is Loungers plc (LON:LGRS) Trading At A 38% Discount?

In this article we are going to estimate the intrinsic value of Loungers plc ( LON:LGRS ) by taking the expected future...

Shareholder Returns

LGRSGB HospitalityGB Market
7D0%3.2%2.1%
1Y-29.6%-17.6%-13.5%

Return vs Industry: LGRS underperformed the UK Hospitality industry which returned -17.1% over the past year.

Return vs Market: LGRS underperformed the UK Market which returned -12.6% over the past year.

Price Volatility

Is LGRS's price volatile compared to industry and market?
LGRS volatility
LGRS Average Weekly Movement2.8%
Hospitality Industry Average Movement5.5%
Market Average Movement5.6%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.9%

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 (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20026,000Nick Collinshttps://www.loungers.co.uk

Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brands in England and Wales. As of April 17, 2022, it operated 195 sites, including 164 Lounges and 31 Cosy Club cafés, bars, and restaurants. The company was founded in 2002 and is based in Bristol, the United Kingdom.

Loungers Fundamentals Summary

How do Loungers's earnings and revenue compare to its market cap?
LGRS fundamental statistics
Market CapUK£213.32m
Earnings (TTM)UK£17.88m
Revenue (TTM)UK£237.29m

11.9x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LGRS income statement (TTM)
RevenueUK£237.29m
Cost of RevenueUK£134.37m
Gross ProfitUK£102.92m
Other ExpensesUK£85.04m
EarningsUK£17.88m

Last Reported Earnings

Apr 17, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin43.37%
Net Profit Margin7.53%
Debt/Equity Ratio24.1%

How did LGRS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is LGRS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LGRS?

Other financial metrics that can be useful for relative valuation.

LGRS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA9x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does LGRS's PE Ratio compare to its peers?

LGRS PE Ratio vs Peers
The above table shows the PE ratio for LGRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.7x
FSTA Fuller Smith & Turner
39.5x31.1%UK£280.4m
YNGA Young's Brewery
21.8x11.0%UK£468.9m
FUL Fulham Shore
16.5x0.5%UK£60.3m
MEX Tortilla Mexican Grill
n/an/aUK£39.4m
LGRS Loungers
11.9x4.4%UK£213.3m

Price-To-Earnings vs Peers: LGRS is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (6.7x).


Price to Earnings Ratio vs Industry

How does LGRS's PE Ratio compare vs other companies in the GB Hospitality Industry?

Price-To-Earnings vs Industry: LGRS is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the UK Hospitality industry average (8.5x)


Price to Earnings Ratio vs Fair Ratio

What is LGRS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LGRS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.9x
Fair PE Ratio15.4x

Price-To-Earnings vs Fair Ratio: LGRS is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.4x).


Share Price vs Fair Value

What is the Fair Price of LGRS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LGRS (£2.07) is trading below our estimate of fair value (£5.47)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Loungers forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGRS's forecast earnings growth (4.4% per year) is above the savings rate (0.9%).

Earnings vs Market: LGRS's earnings (4.4% per year) are forecast to grow slower than the UK market (8.7% per year).

High Growth Earnings: LGRS's earnings are forecast to grow, but not significantly.

Revenue vs Market: LGRS's revenue (13% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: LGRS's revenue (13% 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 LGRS's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Loungers performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LGRS has high quality earnings.

Growing Profit Margin: LGRS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LGRS has become profitable over the past 5 years, growing earnings by 29.2% per year.

Accelerating Growth: LGRS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LGRS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (35.8%).


Return on Equity

High ROE: LGRS's Return on Equity (13.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Loungers's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LGRS's short term assets (£38.7M) do not cover its short term liabilities (£64.7M).

Long Term Liabilities: LGRS's short term assets (£38.7M) do not cover its long term liabilities (£143.4M).


Debt to Equity History and Analysis

Debt Level: LGRS's net debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: LGRS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: LGRS's debt is well covered by operating cash flow (215.7%).

Interest Coverage: LGRS's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Loungers Dividend Yield vs Market
How does Loungers dividend yield compare to the market?
SegmentDividend Yield
Company (Loungers)n/a
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.0%
Industry Average (Hospitality)1.3%
Analyst forecast in 3 Years (Loungers)0%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LGRS has not reported any payouts.


Discover strong dividend paying companies

Management

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

7.8yrs

Average management tenure


CEO

Nick Collins (47 yo)

10.5yrs

Tenure

UK£713,000

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

Nick Collins's Compensation vs Loungers Earnings
How has Nick Collins's remuneration changed compared to Loungers's earnings?
DateTotal Comp.SalaryCompany Earnings
Apr 17 2022UK£713kUK£285k

UK£18m

Jan 17 2022n/an/a

UK£9m

Oct 03 2021n/an/a

-UK£438k

Jul 03 2021n/an/a

-UK£6m

Apr 18 2021UK£283kUK£283k

-UK£11m

Jan 18 2021n/an/a

-UK£11m

Oct 04 2020n/an/a

-UK£11m

Jul 04 2020n/an/a

-UK£12m

Apr 19 2020UK£2mUK£273k

-UK£13m

Jan 19 2020n/an/a

-UK£9m

Oct 06 2019n/an/a

-UK£5m

Jul 06 2019n/an/a

-UK£6m

Apr 21 2019UK£151kUK£151k

-UK£7m

Compensation vs Market: Nick's total compensation ($USD797.74K) is about average for companies of similar size in the UK market ($USD709.79K).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LGRS's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: LGRS's board of directors are considered experienced (3.6 years average tenure).


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.


Ownership Breakdown

What is the ownership structure of LGRS?
Owner TypeNumber of SharesOwnership Percentage
Employee Share Scheme89,7190.09%
General Public471,7140.5%
Private Companies2,817,8972.7%
Hedge Funds5,852,7725.7%
Individual Insiders15,365,56914.9%
VC/PE Firms26,728,52425.9%
Institutions51,977,11750.3%

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


Top Shareholders

Top 25 shareholders own 96.46% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
25.87%
Lion Capital LLP
26,728,524£55.2m0%75.05%
8.53%
Hargreave Hale Limited, Asset Management Arm
8,806,778£18.2m-12.43%0.53%
6.73%
Alexander Reilley
6,951,432£14.4m0%no data
6.3%
Jacob Bishop
6,507,432£13.4m0%no data
6.15%
AXA Investment Managers S.A.
6,349,757£13.1m23.65%0.03%
5.67%
Highclere International Investors LLP
5,852,772£12.1m0%2.44%
5.51%
M&G Investment Management Limited
5,696,081£11.8m-1.94%0.03%
4.9%
Invesco Ltd.
5,065,476£10.5m3.31%no data
3.63%
Jupiter Fund Management Plc
3,754,982£7.8m-15.58%0.03%
3.32%
Gresham House Asset Management Limited
3,433,022£7.1m2.51%0.89%
3%
Bgf Investment Management Limited
3,102,222£6.4m0%4.61%
2.25%
Puma Investment Management Limited
2,322,222£4.8m0%2.74%
1.99%
Caceis Bank Uk Branch
2,052,318£4.2m0%no data
1.98%
Columbia Management Investment Advisers, LLC
2,042,479£4.2m-2.46%no data
1.87%
Ninety One UK Limited
1,934,950£4.0m-0.37%0.01%
1.52%
Hanover Investors Management LLP
1,572,558£3.2m26.05%10.3%
1.28%
Punter Southall
1,322,254£2.7m6.33%19.99%
1.23%
PSigma Investment Management
1,268,410£2.6m19.79%0.98%
1.05%
Nicholas Charles Collins
1,086,276£2.2m0%no data
1.02%
Premier Fund Managers Limited
1,054,500£2.2m0%0.03%
0.77%
Liontrust Portfolio Management Limited
794,025£1.6m-29.44%0.04%
0.58%
Justin Carter
598,572£1.2m0%no data
0.49%
Killik Asset Management
508,853£1.1m0%0.06%
0.44%
BLI - Banque De Luxembourg Investments S.A.
450,000£929.3k0%0.01%
0.38%
FNZ (UK) Ltd
393,409£812.4k0%no data

Company Information

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


Key Information

  • Name: Loungers plc
  • Ticker: LGRS
  • Exchange: AIM
  • Founded: 2002
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: UK£213.321m
  • Shares outstanding: 103.30m
  • Website: https://www.loungers.co.uk

Number of Employees


Location

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


Listings

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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/06 00:00
Earnings2022/04/17
Annual Earnings2022/04/17


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.