Another Cap Raising., page-2

Yeee haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa!!...Raising will be 1 share for every 11 so will hold up well. Punters on a winner!!... Divvy up 12.5%, earnings per share beat analysts etimates.......ocker has no friggen idea what's going on imho....

Results in: Is the Collins Foods Ltd share price in the buy zone?

James Mickleboro | June 26, 2017 | More on: CKF RFG

The Collins Foods Ltd (ASX: CKF) share price will be one to watch this week after the KFC operator released its full-year results and announced further expansion plans.
Here’s what you need to know:

• Revenue up 10.3% to $633.6 million. KFC Australia same store sales up 0.7%.
• Underlying EBITDA up 8.9% to $81.3 million.
• Underlying net profit after tax up 14.1% to $34.3 million. EPS of 35.7 cents.
• Fully franked final dividend of 9 cents per share declared, up 12.5%. Full-year dividend of 17 cents per share.
• Binding agreements to acquire 28 KFC restaurants located in Tasmania, South Australia, and Western Australia for cash consideration of $110.2 million.
• To be funded via a fully underwritten, pro-rata accelerated non-renounceable entitlement offer of $44.1 million and debt of $69.3 million from new enlarged debt facilities.

Overall I felt this was a solid result from Collins Food. Especially in a weak trading environment which last week resulted in a profit downgrade from industry peer Retail Food Group Limited (ASX: RFG).
It is also slightly ahead of analysts’ forecasts. According to Bloomberg, the consensus forecast was for earnings per share of 35.5 cents.
I expect the addition of 28 KFC restaurants will also go down well with the market. For the 12 months ended 20 February 2017, these restaurants delivered same stores sales growth of 5.8% and generated revenue and EBITDA of $93.7 million and $15.7 million, respectively.
This prices the acquisition at approximately 7x EBITDA. Which I think is good value considering Collins Food’s shares trade on an EV/EBITDA multiple of 9x at present.
Should you invest?
Based on today’s results, Collins Food’s shares are changing hands at just a touch over 14x earnings.
I think this makes them great value for patient buy and hold investors. Especially with the company recently following in the footsteps of Domino’s Pizza Enterprises Ltd. (ASX: DMP) and expanding into the European market.
On top of the acquired stores in Germany and the Netherlands, management expects to add an additional 8-10 new stores each year in Europe for the next five years. This complements its plans to add 8-9 new stores in the Australian market each year for the same period.
Overall, I believe the level of earnings growth this provides arguably makes its shares dirt cheap at the current price.
As well as Collins Food, I think these shares are worth considering as buy and hold investments today.