Langton Capital – 2025-06-12 – Wadworth, G4M, SBUX, Pret, contract catering, trends, spending & other:
Wadworth, G4M, SBUX, Pret, contract catering, trends, spending & other:A DAY IN THE LIFE: So everyone must have a least favourite task and, as we’ve got a septic tank, a garden teeming with verminous wild animals and a 50kg dog that needs to be taken for a two-mile drag twice a day, I’m spoiled for choice. But, and despite the above, form filling and, more than anything, navigating clients’ supplier portals in an attempt to get paid, must be right up there. Because, whilst it’s great as an analyst to hear that companies you like are stretching their working capital – often by taking more credit from creditors and allowing to debtors – it’s not so much fun when you’re on the receiving end as, maybe weeks after you think you’ve jumped through every hoop thrown up in front of you, you’ll get an automated email from somewhere on the other side of the world inviting you to ‘please resubmit’ or, worse still, one telling you ‘supplier unknown’. Hence, if you come across me raving and threating to throw myself off a bridge and there isn’t an accompanying vague smell of sewage, the above is likely to be the reason why. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN PUBS & RESTAURANTS: Contract catering: CGA reports that ‘Britain’s leading contract caterers achieved near-double-digit sales growth in the first three months of 2025’. Its Contract Catering Tracker reveals a year-on-year increase of 9.5% between January and March, which means ‘caterers’ sales have now risen in every quarter since mid-2021, when venues were reopening after COVID-19 restrictions. It builds on growth of between 7% and 12% in each of the four quarters of 2024….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Earlier evenings: The latest Go Technology report by CGA and Zonal has suggested that the shift towards earlier visits has been one of the most significant changes in pubs, bars and restaurants of recent years….’ Consumer trends The Bank of England chief cashier, Victoria Cleland, has suggested that Britons are hoarding physical cash as a response to economic uncertainty. The recent electrical failure across Spain and Portugal brought home to some the fact that, if your credit cards don’t work and you have no cash, you could go hungry… Spending review: UKH has responded to the Chancellor’s spending review yesterday noting that she has focused largely on ‘the health service, defence and housing, with little for business or hospitality.’ UKH says, re hospitality, there will be a £1.2 billion investment into skills and training, each year and some £15 billion will be spent on improving regional transport infrastructure…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Property market: Advisory firm Christie & Co updates on trading saying that ‘agency activity in the UK has been strong in the period, with income from business brokerage up by 29% on the same period in the prior year.’ The company’s activities, whilst not confined to hospitality, does significant business in the area…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. COMPANY NEWS: Starbucks reports that it has received “a lot of interest” in the sale of a stake in its China business as the US coffee chain explores a partnership with an outside investor to restore growth there, its chief executive has said. CEO Brian Niccol tells the FT ‘the good news is we’ve got a lot of interest — a lot of interest.’ He adds ‘people see the value of the Starbucks brand. They see the coffee category is growing. I think they’d love to be partnering up with us in figuring out how we take this from 8,000 to 20,000 [stores]….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Wadworth and Company Ltd has reported its FY numbers for the 53-week period ended 4 Jan 2025 to Companies House. Wadworth is a family run independent brewer and pub company with over 140 pubs across the South and West of England (18 managed houses, 129 tenanted pubs, and a brand new brewery). During the year, the company saw revenues and gross profit increase, generating an operating profit in the year under review. Headline numbers: Revenue increased by 5.5% YoY to £41.3m. Gross profit increased by 9.9% to £28.1m, with gross margin increasing to 67.9% from 65.2%. EBITDA increased by 17% to £5.4m. Wadworth generated an operating profit of £3.5m, up from £2.7m in the prior year. Interest costs rose and the credit due to the revaluation of fixed assets fell to £111k from £684k. The above held the increase in PBT to 13.3% at £923k. There were no dividends paid during the year…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Companies reporting yesterday. Fuller’s shares slipped 4.7% or 30p post the company’s full year results. Frontier Developments’ rose by 10.4% as it updated on its full year and announced a proposed share buy-back. Pret a Manger’s UK MD, Clare Clough, speaks to City AM saying that working from home and the subsequent hybrid system that has developed in the UK are having an impact on where Pret A Manger is considering opening new stores. She says some new units will be ‘where people live as much as areas where people work, especially in London…’ SL6 Ltd, which trades as Heston Blumenthal restaurants The Fat Duck and the Hind’s Head alongside other ventures, has reported full year numbers for the period to 26 May 2024 to Companies’ House saying that revenue in the period fell from £9.5m to £8.9m and losses before tax increased from £1.4m to £2.1m. Mr Blumenthal sold his shares in SL6 to his father’s stepbrother, Ronnie Lowenthal, in 2008. Mr Lowenthal is the sole director… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. The MCA reports that independent premium bakery brand Knead is targeting a 10-site estate within three to four years, as it prepares to open its first site outside of Gloucestershire later this month. Asahi Super Dry is set to support retailers with a £2m campaign featuring its beers to support its status as the official beer of the Women’s Rugby World Cup 2025. HOLIDAYS & LEISURE TRAVEL: Heathrow Airport yesterday reported that it saw 7.2 million passengers pass through its terminals during the month of May, up 0.4% on the same month last year. Heathrow suggests that it supports its case for expansion saying ‘as these record numbers become the norm, it’s time to start an honest conversation about the challenges this presents for an already space-constrained yet highly efficient hub.’ Blue Anchor Leisure, which operates around 20 holiday parks, largely in the Lincolnshire area, has reported results for the year to 31 December 2024 to Companies’ House saying that revenue slipped from £29.2m to £28.4m and PBT came in 19% lower at £1.933m (2023: £1.743m)…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Uber is planning to offer driverless taxis in London from spring next year. OTHER LEISURE: Gear4music (Holdings) plc reports that it has ‘purchased stock with an estimated cost value of up to £2.4 million, together with certain intangible assets including websites, trademarks, and commercial data, for a total consideration of up to £1.2 million’ from the Administrators of Jamm Co 2019 Ltd and its subsidiaries… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Disney and NBCUniversal are to sue a generative AI company that they say has used their characters without permission. Disney says ‘our world-class IP is built on decades of financial investment, creativity and innovation — investments only made possible by the incentives embodied in copyright law that give creators the exclusive right to profit from their works.’ Universal adds ‘theft is theft regardless of the technology used, and this action involves blatant infringement of our copyrights.’ Elon Musk, who has seen the value of his stake in his companies fall by tens of billions of dollars in recent weeks, says that he now regrets some of the posts he made about US President Donald Trump. FINANCE & MARKETS: The ONS this morning reports that it estimates UK GDP fell by 0.3% in April 2025, following growth of 0.2% in March 2025. Re the last quarter, it says ‘real GDP is estimated to have grown by 0.7% in the three months to April 2025, compared with the three months to January 2025, largely driven by growth in the services sector in this period….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Chancellor Rachel Reeves yesterday updated on government spending plans saying that the NHS and housing would receive extra funds whilst some other areas would be squeezed. The US and China seem to be finding common ground on trade. Optimism is building that the two countries will find a way to extend their trade war truce. William Hill has reportedly cut its odds on Pat McFadden replacing Rachel Reeves as Chancellor from 5/1 to 2/1. US inflation rose slightly to 2.4% in the year to May from 2.3% in the year to April. Housing and grocery prices rose but prices fell in some areas including petrol, airfares and clothing. Sterling mixed at $1.3584 and €1.1795. Oil higher at $69.49. UK 10 year gilt yield unchanged at 4.55%. World markets mostly lower yesterday and London set to open down around 39 points as at 6.30am. RETAIL WITH NICK BUBB: • See premium. 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