Leisure Sector Report – In Depth Review
2022 Outlook: 6 to Own & Key Themes
Going into 2022 we are cautiously optimistic about the small-mid cap Leisure sector as it emerges from the worst of the pandemic. The demand side of the economy is strong and given wage inflation, any squeeze on discretionary spend is not anticipated to materially impact low-ticket leisure spend/treats. The de-rating since July has gone some way to price in supply side pressures and pockets of value are now emerging. Recent fears of further Covid related restrictions are admittedly a sector negative, but we see any such move as a temporary setback and focus on outer year prospects. We foresee a gradual road to recovery but the well managed / financed and nimble operators will emerge as winners.
Stocks mentioned in the report include:
Artisanal Spirits Company (ART), City Pub Group (CPC), DP Poland (DPP), Fulham Shore (FUL), Hollywood Bowl (BOWL), Gym Group (GYM), Loungers (LGRS), The Restaurant Group (RTN) and Ten Entertainment (TEG).
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