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Hotel Chocolat - fabulous chocolates and great start on AIM, but something has left a bad taste

25/01/2017 · Hotel Chocolat (HOTC)  · Patisserie Holdings PLC (CAKE) 

Hotel Chocolat - fabulous chocolates and great start on AIM, but something has left a bad taste
The chocolatier recently issued an encouraging, if brief, trading update. Our IPO note suggested at the time that this was the IPO of 2016 and the shares haven’t disappointed so far. Is the valuation now up with events or is there plenty more to go for? Our latest note takes a closer look at this highly rated offering and an unsavoury element of the IPO process which investors should be wary of.  (IHT QUALIFYING)

Hotel Chocolat (AIM:HOTC) is certainly a compelling story and consumers and suppliers alike speak highly of the expanding Group. We have observed that some of the their newer restaurants/cafes also appear to be attracting plenty of customers, although many of the larger stores seem depressingly empty, perhaps it’s the time of year! There have been a few minor issues since listing, including some small inconsistencies in the Admission Document, and the latest trading update was lacking the sort of detailed information many expect from a listed company; in defence of this we think that investors often demand too much commercially…

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