Hostmore’s AGM trading update was reassuring, with L4L sales for the first 22 weeks of -3%, being broadly consistent with the first 16 weeks (-1%). Guest opinion scores are improving, the cost reduction initiatives are coming through as expected, and the decline in energy spot prices is helpful. The focus remains on cashflow to reduce borrowings. It is too early in the year to consider any changes to forecasts, and we reiterate our 55p target price, implying 152% upside.
