Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RESTAURANT GROUP PLC. We currently have 58 research reports from 4 professional analysts.
|21Mar17 09:54||RNS||Holding(s) in Company|
|20Mar17 10:54||RNS||Director/PDMR Shareholding|
|20Mar17 09:05||RNS||Holding(s) in Company|
|08Mar17 07:00||RNS||Final Results|
|28Feb17 16:24||RNS||Total Voting Rights|
|20Feb17 10:49||RNS||Holding(s) in Company|
|06Feb17 16:49||RNS||Holding(s) in Company|
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Research reports on
RESTAURANT GROUP PLC
RESTAURANT GROUP PLC
14 Mar 17
Restaurant Group reported results slightly ahead of our expectations but confirmed that trading remains weak and much needs to be done to reposition the business. We anticipate FY17 being a second year of unprecedentedly weak like-for-likes with EBITDA margins falling to 14.5% – a level last seen in 2001. Nevertheless, we anticipate that eventually there will be a recovery back to the 17%-19% range that was consistently achieved between 2006 and 2015, which should drive the share price back to the 450p-550p range if the business does not succumb first to an opportunistic bid. Eight recent private equity transactions in the casual dining space averaged 10.7x EV/EBITDA, which, if based upon trough FY17 numbers, would equate to an exit price of around 500p a share.
N+1 Singer - Restaurant Group - Strategic review finds favour with us
09 Mar 17
We like the strategic review and well thought out initiatives to revive the business. Recovery will take time but we feel there are some early green shoots in the form of the success of the trial Frankie & Benny’s menu. Forecasts have been sufficiently reset and we come off the fence to upgrade from Hold to Buy with a 415p target price.
09 Mar 17
Straight talking new CEO, Andy McCue, has set out an ambitious plan to revive RTN’s fortunes. For us the positive aspects outweigh lingering concerns, although the share price rally (+30% post-January lows) has quickly captured the positive intent, noting execution risks ahead. We make only minor changes to forecasts, staying at HOLD for now (TP raised to 340p) with a 5% dividend prop.
N+1 Singer - Restaurant Group - Finals and strategic review a step in the right direction
08 Mar 17
The eagerly anticipated FY16 finals are not as bad as feared. There are two notable positive ticks: PBT outcome of £77m towards upper end of £74-80m guidance (N+1Se £76.9m) and no DPS cut, signalling confidence for now. The strategic review is frank about various shortcoming and importantly, outlines a clear plan for each concept. We note no further major asset disposals or a signalling of exiting any concept. The outside chance of divesting pubs and concessions to return cash to shareholders has also been scotched, as the new CEO signals a clear desire to grow both operations. No LFL figure is given in the outlook commentary, but unsurprisingly the tone re top line and cost pressures is muted, but no worse than expected. On 1st read we some upside risk to FY17 consensus forecasts from the £3m upside to a further 8 closures announced this morning (this is in addition to the 33 announced at the interims). We will review our numbers and stance post the analyst meeting, but on first read are encourage by the tenor. Make no mistake there is significant work to be done to rebuild profitability, but today's strategic review is a step in the right direction. The shares currently trade on a c15x FY17 P/E with solid 5% yield support, and envisage a mildly positive share price reaction today.
New CEO Strategy Update: First Blush
08 Mar 17
New management makes a candid assessment of the challenges faced, and the extent of the changes required. Our first take is positive on cost savings (£10m p.a.) and dividend (held), a bit surprised on new openings (high at 16-20 year) and disposals (8 further). Plenty to be clarified at 9am meeting. 2017 profits Prelims are in-line, as is current trading, with FY DPS maintained.
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
N+1 Singer - Morning Song 30-03-2017
30 Mar 17
accesso Technology (ACSO LN) Acquisition | Findel (FDL LN) Update on customer redress programme | Hargreaves Services (HSP LN) Blindwells planning approval | Severfield (SFR LN) Upgrading forecasts and reiterating positive view | Summit Therapeutics (SUMM LN) FY results in line; full 24-week PhaseOut DMD data expected in Q1 ’18 | Tribal Group (TRB LN) 2016 delivered and more; future looking bright
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Strong set of full-year results, comforting guidance
23 Mar 17
GVC released a solid set of full-year results. Key highlights Pro forma Net Gaming Revenue (NGR) was up 12% at constant currency, or 9% on a reported basis at €895m, in line with the February trading update. Pro forma clean EBITDA was up 26%, at €205.7m, bang in line with AV’s €206m forecasts, translating a three percentage points increase in margin added to the growth in revenue. c.69% of NGR was derived from markets either regulated (including those in the process of regulating) and/or locally taxed (68% in 2015), while 95% of the revenues were derived from GVC’s proprietary platform. Net debt stood at €131.5m or 0.6x clean EBITDA. The board proposed a second special dividend of €0.15, giving a total dividend of €0.30 per share for the year, beating market expectations. Guidance The start of 2017 seems promising as management said that daily NGR had increased by 15% (+16% cc), translating into an 18% (+19% cc) growth in sports labels’ daily NGR and a 6% (+8% cc) increase in games labels’ daily NGR. The gross win margin reached 9.5% while it should move towards the 10% mark on the long term. Regarding dividends, the group confirmed a progressive distribution policy and expects to distribute at least 50% of the group’s free cash flow, starting from 2017. Debt refinancing In the first quarter of 2017, the group issued a €320m Senior Secured Term and Revolving Facility, composed of a €250m term loan (maturity 6 years) and a €70m revolving credit facility (maturity 5 years) used to pay down the Nomura Loan in full.
Driven by distribution
24 Mar 17
Following results earlier this month, we publish our new forecasts following the segmental consolidation of divisions, and remain cautious relative to consensus (c.2% below at the PBT level in FY18E) mainly due to our UK assumptions. We believe the valuation is relatively attractive, and Inchcape is well placed for further growth given the strength of its balance sheet as it seeks to further utilise its unique global market position.