Alan Tittymarsh
09 Mar 2016
Re: major concern "Whilst not a fair comparison, Tesco appeared solid until its revenues fell away and they owned their freeholds in the main.. "========== ========== ========== ========== ========== ========== =========So why mention that then? TSCO lost £186m+ on a failed operation in the US, then tried to cover up the resultant black hole and got caught.fiddling their accounts. All that in addition to their UK business under constant attack by the discounters. So unless you think RTN have been fiddling their accounts over the years on a massive scale, not even a remotely fair comparison. For the record I bought this pm at 410p. A bargain IMO
72_fastback
09 Mar 2016
Re: major concern Well, we can at least comfort ourselves that the highly-paid analysts didn't see it coming either - at least not publicly - and results were ahead of expectations.If you don't already read it, I can recommend reading the FT Alphaville 'Markets Live' blog - it's free to sign up often has interesting commentary. And no, I don't work there.They covered RTN today - the gist being LFL sales were down and casual dining is a rather crowded market.
tejo
09 Mar 2016
Re: major concern I was simply stating a fact and explaining why it was an area of concern to me. Clearly you are sanguine about the financing and that is fine. Because RTN has traded on supplier credit for many years may provide comfort but does not alter the fact that if there is a substantial reduction in cash flow, which hopefully will not happen, there will consequences that could be painful because current debt is first the in the firing line.. Whilst not a fair comparison, Tesco appeared solid until its revenues fell away and they owned their freeholds in the main..
Alan Tittymarsh
09 Mar 2016
Re: Major concern "The company has a massive negative working capital position,"Sorry, but that's b*ll*cks. If you meant they have high net current liabilities, that is true, but that was also the case 2013, and it didn't stop the sp surging to over 700p at one stage last year when the sp was well overvalued. They have net operating cash flow £116,848, which is 10.8% higher than 2014 - that's NET of working capital. They also have free cash flow of £42,281 (£45,207) so just slightly lower in 2015, becaise of increased capex, but no cash flow worries. Net gearing is just 10%, so RTN are financially sound as they always have been and can easily withstand a slowing down in trade. Looks like panic selling at the moment, so good news for buyers.I'd be happy to buy and hold for at least 2 years.
tejo
09 Mar 2016
Major concern I should have heeded my own warning back in January. The Finance Director knew what was coming when he sold £600,000+ worth in December. The outlook statement is another profit warning but, for me, the major concern is the effect of falling sales on a like with like basis, on cash flow. The company has a massive negative working capital position, i.e it is being financed by its suppliers. If income revenue falls, there is less new cash available to pay the bills for past supplies. If they really believe their views on current and future trading, the dividend should not have been increased and, arguably, reduced. It is a large company but with brands that may be becoming tired and facing wage pressures which may not be capable of being passed on in higher prices which must be reaching a ceiling in a non inflationary environment. Sadly, I bought these shares close to their peak having watched their progress for some time. I probably should sell and take the loss, but very hard to do when there is the prospect of a new chairman changing things for the better. Hold for now but not happy at all.
Health Observer
09 Mar 2016
Re: share price Growth slowing, outlook statement preparing shareholders for poor forward results, forward PE on the high side. This type of business carries high fixed costs so a fall in customers hits profit hardHope this help
Nu on the block
09 Mar 2016
share price Ok Rich, Turnover increased , gross profit increased, pre tax profit increased ,dividend at its highest,was more expected?
Richygm
09 Mar 2016
Re: share price Results.
Nu on the block
09 Mar 2016
share price Huge fall this morning, does anyone have an idea why?
Nutkin2010
20 Jan 2016
Re: Oof! Just takes a few sellers if there are no buyers. This is a low profile stock. With a bit of decent PR this could be a buying opportunity. Keep an eye on Directors purchases.
malj1
15 Jan 2016
Re: ex organic growth pro tem RTN have been a touch disingenuous for a while. The cited headline restaurant openings are churn not net new outlets. Of late they have stopped giving figs on Garfunkels. If you factor these outlets back in you can see they are clearly ex growth. Margins have been under pressure. Treating pre opening costs as exceptionals is a tad rich when you are in the business of opening/running restaurants. All this has been visible for about a year.
tejo
14 Jan 2016
ex organic growth pro tem This was a profits warning of sorts and the market can easily read that the problems that the company has highlighted mean that there is little prospect of any organic growth next year and indeed may do well to equal 2015 results. Although the positioning of many restaurants near cinemas has worked well in recent times, one can read across from the Cineworld statement this week that conditions are far from buoyant. Consumers have more money, especially from cheaper petrol but this seems to have been spent on women's clothing and travel. With restaurant prices already high and living wage around the corner, it is not going to get any easier, even before any interest increases. I think that RTN needs to reduce borrowings and cut back on new openings for a while. The market may have overreacted and the sp has been caught up in a general sell off of equities, but it will need some strong revenue and profit figures to restore the previous good reputation, imho
72_fastback
14 Jan 2016
Oof! I didn't think it was that bad!Bit of an over-reaction?
tejo
16 Nov 2015
share price Clearly there will be some impact from the minimum wage introduction but this will affect all restaurants to some extent and ultimately their clientele I think that the point to bear in mind is that RTN has proven itself to be a very well run company and will very likely deal with this extra cost more effectively than the competition. This could translate into a net benefit but the cost of eating out is now pretty high and there could be a slowdown in growth but RTN should continue to be an attractive investment for the patient amongst us.
72_fastback
16 Nov 2015
Re: fall in share price Hopefully the full year results will be a bit better - they may well have a bit of a boost from 007 and Star Wars cinema goers.Billfish - I believe our esteemed Chancellor changed his name to George when he was 13, so your reference to Gideon is a few decades out of date. Apologies if you are a childhood chum who refuses to accept his new name...
