It’s been a challenging first half of the year for investors with so many stocks falling in value. Our annual stock pick selection features a few bright spots, yet the portfolio is still in negative territory. We can only hope for a much better second-half, though the outlook is far from encouraging. Since we published the portfolio on 23 December 2021, we’ve seen a 14.5% loss versus a ...

Loungers (LGRS:AIM) 257.8p Loss to date: 7.4% Original entry point: Buy at 278.5p, 23 December 2021 Rising inflation and interest rates have dampened investor sentiment towards consumer facing businesses. But we believe the company remains well positioned to continue its growth trajectory against a less rosy economic backdrop. A recent (26 Apr) trading update confirmed momentum in the ...

Despite the best efforts of quite a few holdings, our ‘stocks for 2022’ portfolio is lagging the FTSE All-Share index since being launched in late December 2021. We’re up 2.4% versus a 3.2% gain from the benchmark. Nevertheless, to be in positive territory is a good achievement given how volatile the first three months of the year have been for stock markets, and the FTSE All-Share index ...

Leisure and hospitality shares are trading below pre-pandemic levels but arguably the underlying fundamentals have improved. Financially strong operators have taken advantage of favourable market conditions to accelerate their expansion plans. These include Wagamama owner Resturant Group (RTN), The Gym Group (GYM:AIM), Loungers (LGRS:AIM), and Fulham Shore (FUL:AIM). Despite lingering ...

Loungers (LGRS:AIM) is in a sweet spot as an investment, offering both revenue growth and increasing margins as it benefits from scale efficiencies. The ability to trade throughout the day appeals to a broad demographic with around 90% of customers visiting for more than one occasion, demonstrating the attraction of the format. Arguably the offering is even more relevant in a ...

Accsys Technologies Accsys (AXS:AIM) is a global leader in sustainable wood technology and sells its products into the construction and building materials industries in the UK, Europe, North America and Asia through timber distributors. Its Accoya wood product is both sustainable and high-performing, with a 50-year guarantee, which makes it an ideal replacement for ...

Shares in all-day café-bar operator Loungers (LGRS:AIM) gained 4% to 281p after reporting a 92% increase in first half revenues to £102.3 million and a 28% increase compared with 2019, despite the estate being open for only 11 weeks of the 24 week period. Compared with 2019 like-for-like sales growth since reopening in April to 3 October was an industry leading 26.6%, and 13.6% excluding the ...

Shares in drinks-maker Diageo (DGE) hit a new all-time high of £39.48 this week after the firm released an ambitious set of sales targets reaching from the current financial year out to 2030. Chief executive Ivan Menezes said: ‘We believe our sales growth trajectory has accelerated, underpinned by the strength of our advantaged position across geographies, categories and price ...

The latest official figures show new coronavirus cases rising at their fastest rate since March 2021 due to the more transmissible ‘Delta’ variant which is putting pressure on the government to choose between leaving some measures in place after June 21 or postponing so-called Freedom Day by a couple of weeks. The UK isn’t alone in balancing risks of new variants against the progress made ...

The opening of indoor hospitality on 17 May was the penultimate step on the Government’s roadmap towards the complete removal of restrictions on 21 June, notwithstanding the threat of new variants. The UK’s successful vaccination programme and falling hospitalisations over recent months has spurred hopes for a strong second half economic rebound, with the Bank of England upgrading its 2021 ...

We’re getting a distinct feeling of déjà vu as the hospitality sector starts to reopen. Indeed, just 10 months ago we were doing more or less the same thing, although this time round the economy looks in much better shape and the rollout of vaccinations has given consumer confidence a shot in the arm. After a third lockdown, there is no doubt a large part of the population is ready – not ...

Shares in neighbourhood café operator Loungers (LGRS:AIM) fell 2.8% to 258.5p despite it beefing up its finances ahead of the reopening. The firm has agreed a 12 month extension to its banking facilities as well as covenant testing waivers ahead of opening up its estate. An incremental revolving credit facility of £15 million, put in place last April has been extended to October 2022 and ...

There is significant pent-up demand in the pubs and restaurants sector which should see a swift return to profitability once reopening is allowed, according to analysts at broker Numis. POSITIVE FACTORS ALIGN If Australia is any guide, customers will flock back to restaurants very quickly. Since the country reopened in the early Autumn footfall reached pre-pandemic levels in ...

It might not seem like it in the depths of a gloomy lockdown winter, but brighter days are ahead of us. By mid-February the UK hopes to have vaccinated most over-70s, with a large chunk of over-50s potentially covered by the end of March. This cohort should then be much better protected against Covid-19 and that could result in a new spending spree. Getting the vaccine should allow for the ...

Four major shareholders in hangout cafes operator Loungers (LGRS:AIM), including chief executive Nick Collins, have sold shares worth a combined £9.1 million in the past week. Collins, investor Lion Capital, chairman Alex Reilley and commercial director Jake Bishop collectively sold 4.25 million shares, representing 4.2% of the company’s issued share capital, at a price of 215p each, a ...

UK stocks closed higher Wednesday after news that the UK had become the first country to approve the Pfizer-BioNTech vaccine for emergency use with vaccinations expected to start next week. In afternoon trading, Pfizer shares gained 3.5% while in Frankfurt shares of BioNTech closed 5% higher on the day. At the close in London the FTSE 100 was was up 79 points or 1.25% at 6,463, with miners ...

Hangout cafes operator Loungers (LGRS:AIM) saw its share price jump 7.7% on Wednesday as investors welcomed the reopening of many of its venues under the new tier system. The market's upbeat mood was also fuelled by the company 's strong like-for-like growth and higher profit margins, although 11 weeks of lockdown in the 24 weeks to 4 October predictably took its toll. Revenues for the ...

UK stocks opened slightly lower on Wednesday despite news that the UK had become the first country to approve the Pfizer-BioNTech vaccine for emergency use with vaccinations expected to start next week. In contrast, shares of BioNTech jumped 8% in Frankfurt on the news. By midday the FTSE 100 was was up just 12 points or 0.2% at 6,396, with consumer stocks such as AB Foods (ABF), Coca-Cola ...

UK stocks opened slightly lower on Wednesday despite news that the UK had become the first country to approve the Pfizer-BioNTech vaccine for emergency use with vaccinations expected to start next week. Shares in Frankfurt listed BioNTech jumped 8% In early trading the FTSE 100 was off 0.1% at 6,382 points. Sterling traded 0.4% lower against the US dollar at $1.33. Brent Crude prices were ...

In another blow for the hard-pressed leisure sector, Boris Johnson has introduced a new three-tier restrictions framework to combat the spread of coronavirus, notably across the north of England. Noting that wet-led (drinks) establishments are expected to be harder hit than food-led venues, Liberum Capital has identified JD Wetherspoon (JDW) and Marston’s (MARS) as having a larger exposure ...