A “Business Update”-titled announcement from Hostmore plc (MORE) includes “the sale process for the group's corporate stores remains ongoing, with completion continued to be expected by the end of September”, but also that still “the store sale consideration is expected to be below the par value of the secured borrowings” and so…
Most recently writing on Hostmore (MORE) with its shares down to 12p, I questioned why really change in proposed strategy and suggested resultant doubt about whether the proposed all-share combination with TGI Fridays, Inc. would complete – concluding still certainly avoid/sell. The shares most recently closed at 9.5p, and now a “Business Update” announcement – and what of the shares currently slumping to below 1p!?
On April announcement of proposed all-share combination of Hostmore (MORE) with TGI Fridays Inc., it was emphasised by Hostmore Chairman Stephen Welker it “would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns… we look forward to presenting our existing and new shareholders with the opportunity to participate in the significant value creation potential of the combined group going forward”. That was noted with it to “bring together TGI Fridays' largest franchisee with the global franchisor”. So what of today an “Update on Corporate Transactions and Trading”-titled announcement from Hostmore and its shares currently responding more than 20% lower to 12p?
Restaurants company Hostmore (MORE) has issued an AGM trading update including “EBITDA (FRS102) continues to perform ahead of 2023, with the first four months to the end of April higher by £3.3 million versus the same period for 2023”. However, the shares have currently responded slightly further lower to 16p and for what looks more than that the update has been re-issued as “the original announcement noted that "The person responsible for releasing the announcement is Matthew Biddy, CFO of Hostmore plc." This has been corrected to read "The person responsible for releasing the announcement is Matthew Bibby, CFO of Hostmore plc”!
TGI Fridays and more restaurants company Hostmore (MORE) has issued a trading update including that it “is pleased that the four week December 2023 holiday period generated a further improvement on H2's overall trend, with LFL revenue +4% compared to December 2022… currently expected that H2 2023 generated unadjusted FRS102 EBITDA of £5.4 million, with an EBITDA profit being realised in each of the six months of the period”. So what of that from a current down to 21p share price, £26.5 million market capitalisation?
Restaurants and bars company Hostmore (MORE) has announced that CFO Alan Clark “has informed the board of his decision to resign” and that it is “pleased to announce that Matthew Bibby, currently Finance Director of the company, has been appointed Interim CFO”. Hmmm – and what of a current share price response down by more than 2p to 13p?
'Fridays' (formerly TGI Fridays), '63rd+1st', and 'Fridays and Go' restaurants and bars company Hostmore (MORE) has issued an AGM trading update commencing that “like-for-like revenue and total revenue for the first 22 weeks of the year, adjusted for the variance in the VAT rate on food sales between FY22 and FY23, remain broadly consistent with the revenue performance for the first 16 weeks of the year” and also including “the ongoing loyalty of our guests is welcome” and “cost reduction initiatives… are benefitting EBITDA in line with the quantums and timings as previously communicated. Further opportunities for savings are being evaluated”. Good news then from a 21.8p share price, £27.5 million market cap?
'Fridays' (formerly TGI Fridays), '63rd+1st', and 'Fridays and Go' restaurants and bars company Hostmore (MORE) has issued an update that lending facilities discussions are “progressing well” and noting trading “in line with current market expectations” with “a further announcement confirming the new date of the preliminary results will be made in due course whilst an update on the group's amended banking facilities will also be provided as part of the preliminary results announcement”. What then of a share price currently to 13p?
Previously writing on 'Fridays' (formerly TGI Fridays), '63rd+1st', and 'Fridays and Go' restaurants and bars company Hostmore (MORE), in November with the shares at 15.245p I questioned how effective its “elevating our positioning” is going to be against current headwinds. Today a “Trading Update and Board Change” announcement… and the shares currently slumping from a last close above 14p to below 11.5p, so what’s the detail?
UK hospitality business comprising cocktail-led bar and restaurant brand '63rd+1st', fast casual dining brand 'Fridays and Go' and American-themed 'Fridays', Hostmore (MORE) has announced “a major new marketing campaign for its Fridays brand”, emphasising “in an environment where consumers are putting more thought into where they spend their money, we recognise the importance of elevating our positioning”. Really?
