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Hotel Chocolat

August 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • HOTC
  • Price:
  • 185p
Hotel Chocolate has issued a trading update that said sales in FY16 increased by 12% to £92.6m, c.£1m ahead of forecast. Revenues of £92.6m are expected to be achieved in FY16 (so a bit ahead of Liberum’s forecast of £91.6m). The group ended FY16 with 85 stores, with four more expected to open this year. The increase in manufacturing capacity at the facility near Cambridge is on schedule. Results are due mid October with Liberum forecasting £6.9m pretax profit (eps 5p) lifting to £10m (eps 7.2p) this year. On that basis the PE of 25.7 is still fully up with events. Markets might throw up a better buy chance.  ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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