PPHE Hotel Group Limited

PPHE’s H124 results (June period end) showed good trading across the portfolio with like-for-like (LFL) growth of 4.3% in revenue and 10.9% in EBITDA. We highlight the fact that record revenues were achieved despite a tough comparable and a more measured travel market backdrop. The EBITDA margin rose from 25.1% to 26.7% on a LFL basis through a combination of occupancy growth, efficiencies and enhancements. The £300+ million, four-hotel, pipeline (Radisson RED Belgrade, art’otel London Hoxton,

PPHE Hotel Group Limited

PPHE has released its usual Q1 trading update (31 March period-end) which reads reassuringly. The outlook says that “the Board remains confident in delivering full year performance in line with market expectations”. Revenue rose by 11.9%, from £68.8m to £77.0m. Growth was 11.0% on a Like-for-like (LFL) basis excluding the first three months of operation from art’otel Zagreb, Croatia. Revenue growth was driven by a rise in occupancy as room rates continued to normalise across both leisure, corpo

PPHE Hotel Group Limited

PPHE’s FY23 results read well, with EBITDA of £128.2m, 3% above our estimate of £124.8m. In the year-end trading update, issued on 25 January, PPHE said that it expected EBITDA of at least £127.0m.

PPHE Hotel Group Limited

PPHE, headquartered in Amsterdam, is an international hospitality real estate group which develops, owns and operates assets in Europe in leading cities, urban markets and resort destinations, focused on the affordable luxury market. The Group is unique amongst the European quoted peers in owning its assets, at around 90% of total, and a major proposition is its ability to develop, redevelop and redesign assets

Hybridan Small Cap Feast 27/10/22

Dish of the day Joiners: Unicorn Mineral Resources (UMR) has joined the Standard Segment of the Main Market. Unicorn Mineral Resources plc is an Irish exploration company, incorporated on 25 March 2010. Unicorn’s focus is to explore for zinc in Ireland, and the Company has been working on several license blocks since 2010. It has targeted the highly prospective Limerick Basin. Unicorn raised £930k at 10 pence per share. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Ithaca Energ

Hybridan Small Cap Feast 18/05/22

Dish of the day Joiners: Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa has joined the Access Segment of the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business ne

PPHE Hotel Group - Checking back in

PPHE has accompanied news of continued strong leisure-based recovery with an EPRA NAV per share of £20.85 at June 2021, almost unchanged in H121 despite COVID-19 restrictions, highlighting the company’s resilience from a property perspective. Encouragingly, the recent joint venture on prime London assets (Riverbank and art’otel hoxton) not only endorsed this valuation (44% premium to current share price), but also released £114m for future growth to management with an impressive development reco

PPHE Hotel Group - Phased recovery expected

PPHE’s FY20 results demonstrate how well management has managed operating costs and cash in what is described as ‘the most testing year’. Management enters FY21 with a confident message on liquidity and its commitment to medium-term development plans. The success of vaccination roll-outs produces a more favourable outlook than for some time. Management points to an ‘encouraging early uplift’ in demand in the UK following the new timetable for easing restrictions and early signs of potential reco

PPHE Hotel Group - Leisure demand recovering

PPHE’s H120 results, more notably those from Q220, reflect the full impact of COVID-19 lockdowns on demand, and the substantial progress that management has made in managing the cost base and cash burn. Demand from the leisure sector has returned relatively strongly but the rate of potential recovery in business travel remains uncertain. In recent weeks, the group’s average occupancy level of c 35% is above the 30% required for operational break-even with government support for jobs and business

PPHE Hotel Group - Termination of coverage

Edison Investment Research is terminating coverage on ADMIE Holdings (ADMIE), AJ Lucas Group (AJL), Australis Capital (AUSA), Elbit Medical Technologies (EMTC), Focusrite (TUNE) and PPHE Hotel Group (PPH). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

PPHE Hotel Group - Managing costs well in tough environment

The travel bans and quarantines due to COVID-19 have had a significant impact on PPHE since mid-March and are likely to continue to do so. We now expect a deeper and longer downturn than previously and a slower recovery, so we reduce our forecasts for occupancy for FY20, while holding our prior EBITDA margin assumptions reflecting cost cutting and a high level of government support on key costs. We downgrade FY20 revenue by c 32% and EBITDA by c 29%. The shares are trading at a c 54% discount to

Small Cap Feast

PPHE Hotel Group - Cost cutting for uncertain times

The trading update, following the update on 12 March 2020, highlights the expected drop in demand due to the COVID-19 virus, and strong actions by management to cut costs and preserve cash in the uncertain environment. We leave our forecasts unchanged following our recent downgrade of EBITDA for FY20e by 14%, but now assume no dividend payment in FY20, following the cut of the proposed final dividend for FY19 of 20p. The shares are trading at a discount of 68% to the EPRA NAV, and the majority o

PPHE Hotel Group - Elevated discount to NAV

PPHE’s FY19 results were in line with our expectations, with RevPAR outperformance in most markets in which it competes. FY20 looks a more challenging year due to the threats to travel from the outbreak of the coronavirus, as well as tough comparatives. The company has a history of outperforming its peers in good and tough markets and has the benefit of maturing room stock in key markets. In the long term, the development pipeline continues to look promising. We downgrade our EBITDA forecast for

PPHE Hotel Group - Encouraging end to the year

PPHE’s FY19 trading update is solid, meaning that management is confident of meeting expectations. FY19 like-for-like (l-f-l) room revenue growth of 6.3% follows 6.7% growth in FY18. At this stage, typically, detailed commentary on the performance at individual country level is limited. Management has indicated that trading is benefiting from the £100m investment programme, and therefore the key drivers of growth in FY19 were London and the Netherlands. FY20 will continue to benefit from the two

Morning Note – 30 September 2024

Completion of RCF funding facility; shares oversold

XPF has confirmed the completion of its £10m RCF with Barclays. This positive news endorses the strength of the business model and the high FCF it is generating. Whilst we make no forecast changes, this new funding provides real scope to accelerate new openings ahead of our FY26 and FY27 assumptions and thus lift outer year forecasts. We view XPF as a high growth leisure play with two brands (Escape Hunt and Boom Battle Bar) in the structurally attractive competitive socialising sector. It is le

PANMURE LIBERUM: The Panmure Liberum Leisure Digest: Confidence should rebound and sustain footfall growth

Card Factory - Confident on FY25 outlook

Card Factory’s H125 revenue growth demonstrated it is delivering well against its multi-year growth strategy. While profitability was negatively affected by the (mostly) known inflation in operating costs, management is confident Card Factory will achieve its full-year estimates. This is due the momentum in the business and the mismatch in H125 between cost inflation and the efficiency and cost savings that have always been expected to come through in H225.

Motorpoint Group+ (MOTR, House Stock at 151p) - A welcome return to H1 profitability

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Hybridan Small Cap Feast - 3 October 2024

* A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: None Delistings: Base Resources (BSE.L) has delisted from the AIM market What’s baking in the oven? Potential**** Initial Public Offerings: ITF announced: 30th September 2024: Applied Nutrition, the sports nutrition, health and wellness brand announced that it is con

Trading Update - Come rain or shine, Loungers delivers

Loungers has achieved record 1H25 revenues of £178.3m, +19.2% on 1H24. 16 new Lounge bars and one new Cosy Club, together with last year’s new sites, contributed 14.5% whilst 4.7% LFL sales outperformed industry growth by over 3% due to Loungers’ all-day attractions. This growth is especially strong considering the unseasonal weather, the negative impact of the Euro 2024 football tournament and the fall in UK consumer confidence. Although our 2H25 estimates look cautiously set, inferring c.3

Beat to FY24 EBITDA & positive new funding news

XPF has continued to prove its concepts appeal and slick execution with positive momentum in LFL, site numbers and margin. This has resulted in FY24 being ahead of our estimates. With no change to management expectations, we hold our 2-year EBITDA forecasts and introduce FY27. Whilst current LFL’s have moderated from historical highs, this is in keeping with the wider sector, against which it continues to outperform. Critically, forward bookings for peak December trading are at record highs. Add

PROGRESSIVE: Vertu Motors: Robust market progress

Vertu Motors’ trading update for the five-month period to 31 July, released today, confirms that FY25 adjusted PBT is expected to be broadly in line with market consensus. Profits in H1 will have been lower than in FY24, as anticipated, and H2 is expected to be better than in FY24 because of the improved used vehicle market and stable used car pricing. Although the new retail car market is soft and the BEV (battery electric vehicle) segment remains particularly weak, the used vehicle market is m

Uber Technologies 2Q24: double-digit growth continues

 Uber reported a 21% YoY growth in trips to 2,765mn and a 14% YoY increase in monthly active platform consumers (MAPC) to 156mn in 2Q24, consistent with the growth rate seen in 1Q. The company’s frequency increased by 6% YoY. Gross bookings reached $39.95bn, reflecting a 19% YoY increase. Uber’s revenue for 2Q24 reached $10.7bn, up 16% YoY in 2Q24. The platform supported a record 7.4mn monthly drivers and couriers in 2Q and reported strong engagement from both consumers and drivers. Driver earn

Topps Group (TPT LN) - Acquisition of CTD Tiles Limited

Topps Group announced it has acquired the CTD Tiles brand, 30 stores, selected stock and all related IP from tile specialist CTD Tiles Limited for a consideration of £9m. Based on £44m of LTM revenue, the transaction represents a headline EV/Sales of 0.2x, however, when considering inventories acquired, the price appears extremely attractive, in our view. The UK Tile market has experienced a challenging and prologued downturn over the last 18-24 months, causing multiple peers to enter administra

PROGRESSIVE: Vertu Motors: Smoother roads ahead

The results for the year ended 29 February released today show a robust performance across a difficult year, but they also provide good grounds for optimism. Revenue of £4,720m was a 17.6% advance on FY23, helped by the successful acquisition of Helston in FY23. Underlying operating profit of £59.3m was a 21.5% improvement on the £48.8m achieved in FY23. The net debt (pre-leases) result of £(54.0)m, vs our estimate £(62.0)m and FY23 £(75.3)m, is impressive. Encouragingly the recommended dividend

PROGRESSIVE: Vertu Motors: Growth and value generation engine

The AGM trading update for the first three months of FY25 (to 31 May) confirms that Vertu has seen an encouraging start to the year and that management expects to report FY25 results in line with current market expectations. We maintain our forecasts. Vertu is seeing progress across its business, with used car values showing signs of a return to normal. Uncertainties remain, most notably regarding the Zero Emission Mandate, but the underlying story of growth-driven value remains firmly intact.

Costco Wholesale Corp: Expansion In Taiwan & China, Other Developments, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

Costco gave a decent performance this quarter, with an increase in net sales in comparison to the last year. The company surpassed Wall Street expectations on all countsAverage transaction of ticket, traffic, sales metrics, or shopping frequency increased during the quarter. In the quarter, the best-performing key categories were deli, bakery, toys, jewelry, lawn and garden, tire, kiosks, frozen, and candy. In terms of the ancillary business, food and gas were the best performers. Business and t