For starters was an Interim Management Statement for the 45 weeks to 9 November 2014 from The Restaurant Group (RTN). They say they have continued to see sales up by 10.3% and 3% on a like for like basis. This is because they have continue to open new sites with 24 opened in the year to date and with a further 16 due by the year end. However, they do note that the costs of these extra openings will be incurred in Q4 so this plus the fact that they allude later in the statement to slower growth since August and some cost pressures suggest that the second half may not be quite as strong as previously expected.
Nevertheless they are confident about their pipeline of new site openings which continues to improve and they expect to further strengthen the rate of new openings in 2015. So I wouldn't say it looks cheap, in fact it is close to being a sell for me trading as it does on 20x next years forecast earnings with a 2.5% yield and with the slightly more cautious tone of today's statement has been enough to send it down 5%. But it does represent one of those well managed, high return business which is able to grow organically by reinvesting its cash flows - just a shame it seems to be largely recognized in the rating.
Meanwhile the boring stock (but remember boring can be brilliant) Hill & Smith that I mentioned the other day has also issued a trading update in which they say that they are seeing strong trading - and are on track to meet Board's expectations. So steady as she goes as is often the case with this well managed group, click the trading update link above if you are interested in the detail.
Finally for dessert a quick update on Picton Property Income Ltd (PCTN) which i wrote up earlier this year when I had made a 50% total return. Since then it has been a bit more pedestrian having re-rated onto a premium to NAV. This week they have announced disposals of £3.28 million which were 6% above NAV and today the filling of their largest void in Croydon which now leaves them with just 5% voids. It remains on a 5% or so premium to NAV, in common with most property trusts, but does offer a covered 4.6% yield.