Announcement • Feb 12
Fortress Investment Group LLC completed the acqusition of Loungers plc (AIM : LGRS) from Lion Capital LLP and others. Fortress Investment Group LLC entered into an agreement to acquire Loungers plc (AIM : LGRS) from Lion Capital LLP and others for approximately £320 million on November 28, 2024. The offer will be Under the terms, all shares will be acquired for £3.1 per share in cash. The Scheme is expected to become Effective in Q1 2025. Transaction is subject to approval of Loungers shareholders and regulatory approval. The deal has been approved by the board of directors of Fortress Investment and Loungers plc. As on January 15, 2025, Price per share has been changed to £3.25 per share in cash. As of January 30, 2025, the requisite majority of Loungers Shareholders voted at the General Meeting to pass the Resolution to approve the implementation of the Scheme. As an alternative to the Increased and Final Cash Offer, Eligible Scheme Shareholders will continue to be able to elect for the Alternative Offer in relation to some or all of their holdings of Loungers Shares (subject to the implementation of the Rollover Process as detailed in the Scheme Document). The Scheme remains subject to the sanction by the Court at the Court Sanction Hearing and the satisfaction of the other Conditions to the Scheme and the Acquisition. Executive chairman Alex Reilley and chief executive Nick Collins warned shareholders they would consider their positions “untenable” if the second bid was voted down. The Court Sanction Hearing is scheduled to take place on 7 February 2025. Subject to obtaining the approval of the Court, and the satisfaction or, where applicable, the waiver of the other Conditions (as set out in the Scheme Document), the Scheme is expected to become effective on 11 February 2025. As of February 7, 2025, Loungers announced that the High Court of Justice in England and Wales has today issued the Court Order sanctioning the Scheme.
Anthony Parsons, David Plowman, Christopher Fincken, Alex Thomas and Alina Vaskina of HSBC Bank plc acted as finance advisor to Fortress Investment Group LLC and Sam Fuller, Tim Richardson and Tom Barnard of Houlihan Lokey UK Limited acted as financial advisor to Loungers. Slaughter and May is acting as legal adviser to Fortress Investment Group LLC and Leon Ferera of Jones Day is acting as legal adviser to Loungers. Tom Mercer and Tim Rennie of Ashurst LLP acted as legal advisor to HSBC Bank plc.
Fortress Investment Group LLC completed the acqusition of Loungers plc (AIM : LGRS) from Lion Capital LLP and others on February 11, 2025. The admission to trading of Loungers Shares on AIM was suspended with effect from 7.30 a.m. February 11, 2024. It is expected that the admission to trading of Loungers Shares on AIM will be cancelled with effect from 7.00 a.m. on February 12, 2025. Price Target Changed • Jan 17
Price target decreased by 9.7% to UK£3.50 Down from UK£3.88, the current price target is an average from 6 analysts. New target price is 10% above last closing price of UK£3.18. The company is forecast to post earnings per share of UK£0.13 for next year compared to UK£0.086 last year. Recent Insider Transactions • Dec 07
Insider recently sold UK£4.2m worth of stock On the 3rd of December, Peter Kemp-Welch sold around 1m shares on-market at roughly UK£3.04 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of UK£4.5m more than they bought in the last 12 months. New Risk • Nov 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 8.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Nov 28
CF EXEDRA BIDCO LIMITED entered into an agreement to acquire Loungers plc (AIM : LGRS). CF EXEDRA BIDCO LIMITED entered into an agreement to acquire Loungers plc (AIM : LGRS) on November 28, 2024. Under the terms, all shares will be acquired for £3.1 per share in cash. The Scheme is expected to become Effective in Q1 2025. Transaction is subject to approval of Loungers shareholders. Regulatory shareholders.
HSBC Bank plc acted as finance advisor to CF EXEDRA BIDCO and Houlihan Lokey UK Limited acted as financial advisor to Loungers. Slaughter and May is acting as legal adviser to Bidco and Jones Day is acting as legal adviser to Loungers. Announcement • Nov 13
Loungers plc to Report First Half, 2025 Results on Nov 28, 2024 Loungers plc announced that they will report first half, 2025 results on Nov 28, 2024 Announcement • Sep 02
Loungers plc, Annual General Meeting, Oct 08, 2024 Loungers plc, Annual General Meeting, Oct 08, 2024. Location: ritorno lounge, unit 3, v shed, canons road, bs1 5uh, bristol United Kingdom Price Target Changed • Jul 14
Price target increased by 8.2% to UK£3.72 Up from UK£3.44, the current price target is an average from 9 analysts. New target price is 31% above last closing price of UK£2.84. Stock is up 43% over the past year. The company is forecast to post earnings per share of UK£0.13 for next year compared to UK£0.086 last year. Reported Earnings • Jul 10
Full year 2024 earnings released: EPS: UK£0.086 (vs UK£0.067 in FY 2023) Full year 2024 results: EPS: UK£0.086 (up from UK£0.067 in FY 2023). Revenue: UK£353.5m (up 25% from FY 2023). Net income: UK£9.12m (up 32% from FY 2023). Profit margin: 2.6% (up from 2.4% in FY 2023). The increase in margin was driven by higher revenue. Same store sales growth: 7.5% vs FY 2023 Total stores: 257 (up by 35 from FY 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Apr 09
Loungers plc Announces Executive Changes Loungers plc announced that Justin Carter is being promoted from his current role of MD of the Lounge brand to the newly created position of Group MD. The introduction of this new role is aimed at ensuring that Loungers has the optimal senior management structure to deliver continued consistent financial out-performance as the Group continues to grow rapidly. Justin will now be responsible for all three of Loungers' brands, which will allow each of them to benefit from his invaluable industry experience and operational expertise. Justin joined Loungers in 2015 as COO before becoming Lounge MD in 2017. He was previously Operations Director at Fuller Smith & Turner, prior to which he founded and then subsequently sold The Elbow Room, a chain of pool bars. The company is also announced to be appointing Kate Eastwood to replace Justin in the role of Lounge MD. Kate joins the Group from Fuller, Smith and Turner where she has been Operations Director for the past four years. She previously worked in a variety of roles for Revolution Bars Group, including Sales & marketing Director, and Director of Business Development. Recent Insider Transactions • Jan 10
CEO & Director recently sold UK£287k worth of stock On the 8th of January, Nicholas Charles Collins sold around 130k shares on-market at roughly UK£2.21 per share. This transaction amounted to 12% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Nicholas Charles' only on-market trade for the last 12 months. Reported Earnings • Nov 30
First half 2024 earnings released: EPS: UK£0.026 (vs UK£0.024 in 1H 2023) First half 2024 results: EPS: UK£0.026 (up from UK£0.024 in 1H 2023). Revenue: UK£149.6m (up 22% from 1H 2023). Net income: UK£2.74m (up 11% from 1H 2023). Profit margin: 1.8% (down from 2.0% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to UK£2.28, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 18x in the Hospitality industry in the United Kingdom. Total returns to shareholders of 9.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£4.13 per share. Announcement • Oct 13
Loungers plc to Report First Half, 2024 Results on Nov 28, 2023 Loungers plc announced that they will report first half, 2024 results on Nov 28, 2023 Reported Earnings • Sep 03
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: UK£0.067 (down from UK£0.17 in FY 2022). Revenue: UK£283.5m (up 20% from FY 2022). Net income: UK£6.93m (down 61% from FY 2022). Profit margin: 2.4% (down from 7.5% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 22%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Sep 02
Loungers plc, Annual General Meeting, Oct 13, 2023 Loungers plc, Annual General Meeting, Oct 13, 2023, at 13:00 Coordinated Universal Time. Location: Armada House, Telephone Avenue Bristol United Kingdom Announcement • Aug 18
Loungers plc Appoints Lucy Knowles as Managing Director of Its Cosy Club Brand Loungers plc has announced the appointment of Lucy Knowles as Managing Director of its Cosy Club brand. Knowles was previously Managing Director of London-based bar chain, Corney & Barrow, later joining SSP as Group Marketing Director. During her time at SSP, Knowles led brand and menu innovation for over 150 brands and innovated several new global brand concepts. She will join Loungers in September. New Risk • Jul 14
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: UK£380k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (2.4% net profit margin). Significant insider selling over the past 3 months (UK£380k sold). Recent Insider Transactions • Jul 14
Founder recently sold UK£380k worth of stock On the 12th of July, Alexander Reilley sold around 200k shares on-market at roughly UK£1.90 per share. This transaction amounted to 2.9% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Alexander's only on-market trade for the last 12 months. New Risk • Jul 13
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.4% Last year net profit margin: 7.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • Jul 13
Full year 2023 earnings released: EPS: UK£0.067 (vs UK£0.17 in FY 2022) Full year 2023 results: EPS: UK£0.067 (down from UK£0.17 in FY 2022). Revenue: UK£283.5m (up 20% from FY 2022). Net income: UK£6.93m (down 61% from FY 2022). Profit margin: 2.4% (down from 7.5% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Jun 10
Loungers plc (AIM:LGRS) commences an Equity Buyback Plan for 10,328,799 shares, representing 10% of its issued share capital, under the authorization approved on October 14, 2022. Loungers plc (AIM:LGRS) commences share repurchases on June 9, 2023, under the program mandated by the shareholders in the Annual General Meeting held on October 14, 2022. As per the mandate, the company is authorized to repurchase up to 10,328,799 shares, representing 10% of its issued share capital. The minimum price (exclusive of expenses) which may be paid for each ordinary share is £0.01 and the maximum price which may be paid for each ordinary share is the higher an amount equal to 105% of the average of the middle market quotations for an ordinary share as derived from the London Stock Exchange Daily Official List of the UK Listing Authority for the five business days immediately preceding the day on which the ordinary share is contracted to be purchased. The shares purchased may either be cancelled or held as treasury shares, which may then be subsequently cancelled, sold for cash or used to satisfy share options and share awards under a company's employee share scheme. The authority shall expire at the conclusion of the next Annual General Meeting of the company or 15 months after the passing of this resolution, whichever is the earlier. As of August 19, 2022, the company had 103,287,994 ordinary issued share capital. Major Estimate Revision • Apr 26
Consensus EPS estimates fall by 12%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from UK£274.9m to UK£277.8m. EPS estimate fell from UK£0.109 to UK£0.096 per share. Net income forecast to grow 15% next year vs 5.2% growth forecast for Hospitality industry in the United Kingdom. Consensus price target broadly unchanged at UK£3.39. Share price fell 4.3% to UK£1.99 over the past week. Reported Earnings • Dec 01
First half 2023 earnings released: EPS: UK£0.024 (vs UK£0.11 in 1H 2022) First half 2023 results: EPS: UK£0.024 (down from UK£0.11 in 1H 2022). Revenue: UK£122.3m (up 20% from 1H 2022). Net income: UK£2.46m (down 77% from 1H 2022). Profit margin: 2.0% (down from 11% in 1H 2022). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the Hospitality industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 95% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 30
Price target decreased to UK£3.52 Down from UK£3.81, the current price target is an average from 7 analysts. New target price is 84% above last closing price of UK£1.92. Stock is down 31% over the past year. The company is forecast to post earnings per share of UK£0.10 for next year compared to UK£0.17 last year. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Senior Independent Non-Executive Director Nick Backhouse was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 09
Loungers plc (AIM:LGRS) acquired Three roadside diners from Route Restaurants Limited. Loungers plc (AIM:LGRS) acquired Three roadside diners from Route Restaurants Limited on November 7, 2022.
Loungers plc (AIM:LGRS) completed the acquisition of Three roadside diners from Route Restaurants Limited on November 7, 2022. Announcement • Nov 07
Loungers Launches Roadside Restaurant Brand, Brightside Loungers, announced the launch of a new roadside restaurant brand, Brightside. The Group sees great potential to reinvigorate roadside dining in the UK, a sector that it believes has become tired and uninspiring. Loungers has acquired three sites initially, the first of which is set to open on the A38, south of Exeter, in February 2023. Further sites will open on the A303 near Honiton, and on the A38 near Saltash, in the spring. Loungers believes there is scope to develop a truly national brand and has ambitious plans to roll out Brightside to all corners of the UK in the coming years. It is envisaged that sites will be situated predominantly on A-roads, and will focus on bringing genuine hospitality back to a sector that has been dominated by drive-thru and QSR (quick service restaurant) concepts in recent years. Brightside will offer a freshly cooked menu full of classic, comfort food-style dishes - including an extensive brunch menu, burgers, pizzas, and kids' menu - in nostalgic surroundings. The roadside restaurants will appeal to a broad range of customers including families, locals, and UK holidaymakers. Brightside will share the same core DNA of the Lounge and Cosy Club brands - a focus on all-day dining to appeal to a broad audience, a fierce commitment to value for money, and run by teams that deliver exceptional service. Brightside roadside restaurants will be friendly, warm and wholesome and will endeavour to bring back the pleasure of heading out and exploring. Announcement • Oct 14
Loungers plc to Report First Half, 2023 Results on Nov 30, 2022 Loungers plc announced that they will report first half, 2023 results on Nov 30, 2022 Announcement • Aug 26
Loungers plc, Annual General Meeting, Oct 14, 2022 Loungers plc, Annual General Meeting, Oct 14, 2022, at 13:00 Coordinated Universal Time. Location: Cosy Club, 14 Tunsgate Quarter Guildford GU1 3QY Guildford United Kingdom Reported Earnings • Jul 14
Full year 2022 earnings: Revenues in line with analyst expectations Full year 2022 results: Revenue: UK£237.3m (up 203% from FY 2021). Net income: UK£17.9m (up UK£29.0m from FY 2021). Profit margin: 7.5% (up from net loss in FY 2021). Same store sales growth: 22.1% vs FY 2021 Total stores: 195 (up by 27 from FY 2021). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 12%, compared to a 26% growth forecast for the restaurants industry in the United Kingdom. Breakeven Date Change • Apr 30
Forecast breakeven date pushed back to 2023 The 6 analysts covering Loungers previously expected the company to break even in 2022. New consensus forecast suggests the company will make a profit of UK£10.0m in 2023. Average annual earnings growth of 15% is required to achieve expected profit on schedule. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Senior Independent Non-Executive Director Nick Backhouse was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 26
Loungers plc to Report Fiscal Year 2022 Results on Jul 13, 2022 Loungers plc announced that they will report fiscal year 2022 results on Jul 13, 2022 Reported Earnings • Dec 04
First half 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First half 2022 results: EPS: UK£0.11 (up from UK£0.002 in 1H 2021). Revenue: UK£102.4m (up 91% from 1H 2021). Net income: UK£10.9m (up UK£10.7m from 1H 2021). Profit margin: 11% (up from 0.3% in 1H 2021). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates. Earnings per share (EPS) surpassed analyst estimates. Over the next year, revenue is forecast to grow 80%, compared to a 45% growth forecast for the industry in the United Kingdom. Reported Earnings • Jul 22
Full year 2021 earnings released: UK£0.11 loss per share (vs UK£0.14 loss in FY 2020) The company reported a soft full year result with weaker revenues and control over costs, although losses reduced. Full year 2021 results: Revenue: UK£78.3m (down 53% from FY 2020). Net loss: UK£11.1m (loss narrowed 13% from FY 2020). Price Target Changed • Jun 10
Price target decreased to UK£3.31 Down from UK£3.75, the current price target is an average from 4 analysts. New target price is 20% above last closing price of UK£2.75. Stock is up 108% over the past year. Is New 90 Day High Low • Mar 10
New 90-day high: UK£2.46 The company is up 10.0% from its price of UK£2.23 on 10 December 2020. The British market is up 4.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Hospitality industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£1.87 per share. Is New 90 Day High Low • Feb 08
New 90-day high: UK£2.42 The company is up 38% from its price of UK£1.75 on 10 November 2020. The British market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£1.91 per share. Price Target Changed • Dec 14
Price target raised to UK£2.60 Up from UK£2.35, the current price target is provided by 1 analyst. The new target price is 16% above the current share price of UK£2.25. As of last close, the stock is up 6.4% over the past year. Recent Insider Transactions • Dec 13
Founder & Commercial Director recently sold UK£1.4m worth of stock On the 10th of December, Jacob Bishop sold around 650k shares on-market at roughly UK£2.15 per share. This was the largest sale by an insider in the last 3 months. This was Jacob's only on-market trade for the last 12 months. Reported Earnings • Dec 06
First half 2021 earnings released: EPS UK£0.002 The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: UK£53.5m (down 33% from 1H 2020). Net income: UK£156.0k (up UK£2.22m from 1H 2020). Profit margin: 0.3% (up from net loss in 1H 2020). The move to profitability was driven by lower expenses. Is New 90 Day High Low • Nov 10
New 90-day high: UK£1.75 The company is up 38% from its price of UK£1.27 on 12 August 2020. The British market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£1.78 per share. Price Target Changed • Oct 16
Price target raised to UK£2.35 Up from UK£2.00, the current price target is an average from 2 analysts. The new target price is 60% above the current share price of UK£1.47. As of last close, the stock is down 27% over the past year. Announcement • Jul 17
Loungers plc Announces Re-Opening of 75 Lounges and 19 Cosy Clubs Loungers has successfully re-opened 75 Lounges and 19 Cosy Clubs (from a total estate of 138 Lounges and 29 Cosy Clubs), following the relaxation of the Government imposed closure period due to Covid-19. The company has been very encouraged by the reception from both teams and customers. The steps it has taken to ensure everyone's safety have been well-received and have not prevented delivering usual exceptionally high standards of hospitality and atmosphere. As a result of the confidence it has gained from the trading at re-opened sites to date, it has decided to accelerate re-opening programme and will have the full estate re-opened by 5 August.