Under competitors, I wood dig into Redwheel. There has been strong noises from the over the past year to aggressively expand in the UK.
And then there are entertainment players like Gravity (see Gravity Wandsworth for an example) that are closer to BBB - multiple games all in one place for "activity based indoor social outings".
I couldn't find anything searching for Redwheel. Can you provide source? Gravity looks good, but seems more like a shopping mall for entertainment. Tbh.. I don't worry too much about competition. It's a good sign that the concept is working. And there is just little serious competition which is accelerating growth similar to XPF. Operating bars is like gyms, restaurants, supermarkets. There can be many in towns, as there are many relevant locations. It's all about filling capacity. Market can absorb many players here. No brand loyalty required.
Great thesis! I will look into it for sure. Regarding skin in the game, have you looked at incentive plans? Does the company have any share-based long term plan?
thx. Can't paste screenshots here, but you can find it in the latest interim results. They have 17,366,666 options outstanding and the major part vests according to SP hurdles of 11.25, 18.75 and 25.00 (30%, 90%, 100% of outstanding respectively).
Maybe I am so concerned about insider-ownership because Richard Harpham sounds like a very smart guy and a very good capital allocator (Graham Bird as well, listen to the earnings calls). And a smart guy would realise at some point that this is a unique opportunity. But one needs to consider that Richard is not founder of the business so actually he was just hired as CEO and has probably not the net-worth to buy huge chunks of stock. Let's see, I expect further insider buys in quarters to come.
Under competitors, I wood dig into Redwheel. There has been strong noises from the over the past year to aggressively expand in the UK.
And then there are entertainment players like Gravity (see Gravity Wandsworth for an example) that are closer to BBB - multiple games all in one place for "activity based indoor social outings".
I couldn't find anything searching for Redwheel. Can you provide source? Gravity looks good, but seems more like a shopping mall for entertainment. Tbh.. I don't worry too much about competition. It's a good sign that the concept is working. And there is just little serious competition which is accelerating growth similar to XPF. Operating bars is like gyms, restaurants, supermarkets. There can be many in towns, as there are many relevant locations. It's all about filling capacity. Market can absorb many players here. No brand loyalty required.
My apologies! I mis-remembered the name. It is actually Red Engine, not Redwheel.
Great thesis! I will look into it for sure. Regarding skin in the game, have you looked at incentive plans? Does the company have any share-based long term plan?
Hi,
thx. Can't paste screenshots here, but you can find it in the latest interim results. They have 17,366,666 options outstanding and the major part vests according to SP hurdles of 11.25, 18.75 and 25.00 (30%, 90%, 100% of outstanding respectively).
https://www.londonstockexchange.com/news-article/XPF/interim-results/16383310
Well, although I also prefer owning shares outright, this is a decent incentive. Very interesting opportunity!
Great find!
Maybe I am so concerned about insider-ownership because Richard Harpham sounds like a very smart guy and a very good capital allocator (Graham Bird as well, listen to the earnings calls). And a smart guy would realise at some point that this is a unique opportunity. But one needs to consider that Richard is not founder of the business so actually he was just hired as CEO and has probably not the net-worth to buy huge chunks of stock. Let's see, I expect further insider buys in quarters to come.