Eclectic Bar Group (AIM:BAR) – shares take a dive, but is there value?
Shares in the AIM quoted operator of bars and nightclubs took a big dive after disappointing interim results and news that poor trading was likely to continue during the remainder of the financial year. With the shares tumbling more than 50% to all-time lows it looks like most have given up on this one. One for the bargain hunters perhaps?
For the 6 months to 31st December 2014 sales on continuing operations were up 11% at £12.3m, but company EBITDA on continuing operations before adjusting items was at £1.1m (2013: £1.3m). The second quarter, which includes the important October period when students return to university, proved difficult. Reduced numbers of students, more competition being seen across a number of our sessions and venues, disappointing early trading for two of their new openings (Lola Lo in Derby and Dirty Blonde in Brighton) and poor trading at Bournemouth, have impacted on the current period results. This from the Group: “The Group operates…