Langton Capital – 2022-07-13 – JDW, Loungers, Vianet, WFH, Pret sales, holiday disruption & other:
JDW, Loungers, Vianet, WFH, Pret sales, holiday disruption & other:A DAY IN THE LIFE: Bit busy with corporate announcements this morning. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium at time of writing are £345 for one subscription, £595 for multiple, both plus VAT. Or sign up for easy in, easy out monthly option HERE JD WETHERSPOON – FY TRADING UPDATE: JD Wetherspoon has today updated on Q4 trading and our comments thereon are set out below: Headline numbers: • JDW reports that ‘like-for-like sales in the first 11 weeks of quarter 4 of the current financial year were minus 0.4%, compared to the same, pre-pandemic, period in 2019.’ • The company reports ‘this was an improvement compared to the previous quarter, when sales were minus 4%’. • JDW adds that ‘recovery for many companies has been slower and more laborious than was anticipated’. It says there was little evidence of pent up demand, at least across its own customers. • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. LOUNGERS – FULL YEAR RESULTS: Loungers has this morning reported full year numbers and our comments thereon are set out below: Headline numbers: • Loungers reports sales of £237.3m, up from £78.3m last year and up from £166.5m in FY20. • The company reports adjusted EBITDA of £53.6m (FY20: £28.8m) with PBT of £21.6m (FY20: loss £14.8m). EPS is 17.op. • The co reports a ‘consistent out-performance of the wider sector by more than 15% over the year, according to the Peach Tracker.’ • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. PUBS & RESTAURANTS: Consumer behaviour: Stats yesterday from the British Retail Consortium & Barclaycard. Chief takeaway that ‘sales volumes are falling to a rate not seen since the depths of the pandemic’ (per the BRC). However, Barclaycard, buoyed as it is by the continued swing to plastic & away from cash, is more optimistic & says ‘essential card spending grew 4.4% (driven largely by a 24.8% rise in Fuel spending)’ and ‘non-Essential card spending grew 7.1% compared to the same period last year’ driven by a ‘surge in Overseas Travel spending…’ • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. Higher interest rates: Whilst fixed rates will delay the impact of rising interest rates, Moneyfacts has reported that the average variable rate paid by mortgage borrowers in the UK has moved over 5% for the first time over 13 years… Disruption to trade: Aslef train drivers at eight train operating companies have voted to strike. RMT boss Mick Lynch says this ‘goes to show that railway workers across every grade from cleaners, catering staff guards, maintenance staff and drivers are fed up with real-terms pay cuts…’ Other news: Over 100 different fresh cask beers are set to feature at Indie Beer Scotland, which is organised by Scottish brewers from the not-for-profit trade association the Society of Independent Brewers. YouGov and the Centre for Economic and Business Research have reported that Britons’ confidence in the economy has dropped for the seventh month in a row. The CBI has said that whoever becomes the UK’s next PM should focus on business with an overhaul of business taxation a major priority. Bloomberg’s latest Pret Index reports that ‘London’s airports are teeming with more passengers every week even as major airlines cancel thousands of flights…’ The NTIA has called for VAT to be cut to 12.5% and for the energy price cap to be extended to SMEs. The ONS has reported that 37% of Londoners are still working from home. COMPANY NEWS: Vianet Group has updated on Q1 trading, saying that ‘the good revenue momentum experienced by the Group at the back end of last year has continued into the new financial year with recurring revenues remaining strong at c. 85%, with accompanying gross margins being maintained across the whole business…’ Pepsi yesterday reported Q2 numbers saying that revenues rose by 5.2% with EPS of 186c per share against estimates of around 174c. The company reports that its selling prices could rise further in the near future. It is looking at cutting costs… Starbucks former and now interim CEO Howard Schultz has sent a letter to employees saying that the co is committed to making more improvements in the ways that it deals with both customers and employees. BrewDog is set to open its biggest site ever, a 27,500 sq. ft. craft beer bar in central London, at Waterloo Station on 18 august. HOLIDAYS & LEISURE TRAVEL: Heathrow Airport is to reduce volumes and has told airlines to stop selling tickets for summer departures. It is cutting the number of passengers to a maximum of 100,000 a day, around 4,000 fewer than currently scheduled. OTHER LEISURE: Lego has announced that it will stop operating in Russia indefinitely. The company will end its relationship with Inventive Retail Group, which runs 81 shops on Lego’s behalf. Twitter has begun its threatened legal action against Elon Musk to try to force him to complete on his purchase of the social media firm… FINANCE & MARKETS: Analysis by the Resolution Foundation and the London School of Economics has concluded that low growth and inequality have left British households £8,800 worse off than their peers in other wealthy countries. The ONS has reported that the UK economy grew by 0.5% in May, despite the cost of living crisis. US CPI comes out later today. Sterling up at $1.19 and €1.1855. Oil lower at $99.63. UK10yr gilt yield down 9bps at 2.07%. world markets mixed yesterday. London set to open down around 20pts as at 6.30am. FORTHCOMING NEWS: A bit of life this week before the pace of announcements busies up later this month. Hostmore updated on H1 trading on Monday, Pepsi on Tuesday. Loungers reports full year numbers on Wednesday and JD Wetherspoon comments on full year trading also on Wednesday. Vianet’s AGM is Wednesday. DP Poland hosts its AGM on Friday. RETAIL WITH NICK BUBB: • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. |
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