CRUX's Penny buys into Whitbread despite firm's UK-wide shut down

Checks in despite coronavirus closures

Richard Penny has taken a stake in budget hotel, pub and restaurant operator Whitbread despite the current coronavirus lockdown that will see the firm’s venues closed for several weeks.

Penny, the manager of the CRUX UK Special Situations fund, said he had previously owned Whitbread and knew it well. He added that the UK-wide shut down would lead to a reduction in revenue and profits but this was reflected in its share price, down from £48 to around £20. "We think the long-term value for the company's property assets and cash is c.£40 per share, and that it has a strong balance sheet to help weather the volatility," he said in a portfolio update. Elsewhere, Penny said he estimated there would be western economic lockdown for between three to six weeks. It would, he s...