Langton Capital – 2022-07-25 – Strikes, inflation, Mission Mars, SBUX, FUL, PFD, hotel market etc.:
Strikes, inflation, Mission Mars, SBUX, FUL, PFD, hotel market etc.:A DAY IN THE LIFE: Bit pushed for time this morning so straight 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 PUBS & RESTAURANTS: Transport disruption: TfL has confirmed that planned RMT strike actions will not go ahead. The union was prepared to strike on the Night Tube services every weekend between 4 July 2022 and 4 December 2022 on the Central, Victoria, Jubilee, Northern and Piccadilly lines. However, a strike by more than 40,000 rail workers is to go ahead this Wednesday after talks failed to make any breakthrough… • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. Price increases & inflation: Lumina Intelligence’s Menu Tracker data reports that the average price of a main course went up +10% between February and June… The Times reports the consultancy arm of accountant EY as saying that inflation in the UK could hit 15% this coming winter. The Times further reports that wage inflation is being exacerbated by ‘bumper bonuses’ being used by employers to lure workers to join them… • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. Cost of living squeeze: BBC reports that families are cutting back on fuel and clothing as rising prices make them question what they can afford, with clothing sales down 4.7% and petrol and diesel sales down by 4.3% in June, according to ONS data. • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. Other news: Pavement licenses: Commenting on the move by government to make pavement licenses more permanently available, UKH CEO Kate Nicholls says ‘any help that the struggling hospitality sector gets right now is gratefully received…’ CGA by NielsenIQ has reported that total rum sales were worth just over £1bn in the last 12 months… Retail Sales: Worth noting that the ONS, commenting on retail sales, said ‘after taking account of rising prices, retail sales fell slightly in June and although they remain above their pre-pandemic level, the broader trend is one of decline.’ Lumina’s Menu Tracker reports that the average cost of a main course across the UK’s pubs has risen by 10.1% since February. Annualised, that’s quite a lot… The Champagne grape harvest should be the highest for a decade per Drinks Business. COMPANY NEWS: Starbucks has dismissed reports in The Times, which claimed it had employed US investment bank Houlihan Lokey to canvass interest in its UK business… Mission Mars reports turnover of £34.2m for the first nine months of 2022 financial year… Fulham Shore chairman David Page is interviewed in The Telegraph and says that sales across Franco Manca and The Real Greek have shown no signs of slowing down in the face of the cost of living crisis… • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. The Times reports it is ‘understood that Oakman has advisers from Forster Chase to explore refinancing options.’ Naked Wines has announced that Shawn Tabak, Chief Financial Officer and Director, has by mutual agreement departed his positions with the company, effective July 22, 2022. It adds that James Crawford has been appointed on an interim basis through to June 2023. BJ’s Restaurants Inc.in the US reported Q2 numbers and said that sales were now above pre-pandemic levels. BJs it has not yet seen any (recession induced) changes in consumer behaviour… The Co-op supermarket chain is reportedly cutting 400 jobs at its head office in Manchester after blaming inflation and difficult trading conditions as having impacted its latest financial results. Next Gen Foods has launched its flagship product, TiNDLE, the first chicken made from plants, in over 50 restaurants across the UK, including in BrewDog. Marie Blachère has reached 700 outlets in France following the launch of its latest store in Allauch, Provence. The company is the largest coffee chain in France, followed by domestic bakery Paul’s, which has approximately 400 outlets. Premier Foods plc has announced the acquisition of The Spice Tailor. The Spice Tailor is ‘a premium, authentic Indian and South East Asian meal kits and accompaniments brand’. Premier is paying 43.8% for 100% of the company, which is expected to be accretive from the first year. HOLIDAYS & LEISURE TRAVEL: A record 150,000 holidaymakers were set fly with Jet2 and Jet2holidays to and from destinations across the Mediterranean and Canary Islands last weekend. Summer capacity has risen by 14% compared to 2019 as the group claims not to have cancelled a single flight due to staff shortages. Police Aux Frontieres (PAF) resources in Dover have been “insufficient”, according to the Port of Dover, causing long queues for holidaymakers and lorry drivers. Cross channel services remain disrupted: The Post Office Travel Money’s annual Family Holiday Report has found that resorts in Bulgaria and Turkey should be cheaper for British holidaymakers than those in the eurozone this summer given the movement in Sterling. Christie & Co has updated on the market in its UK Hotels mid-year review, saying that ‘the economic and operational challenges noted in our annual Business Outlook 2022 Report were very much evident for the UK hotel sector in the first half of this year.’ Christie says ‘hoteliers were faced with a challenging trading environment, with headwinds such as inflation, staff shortages and wage increases, supply chain disruptions and the cost-of-living crisis all having intensified significantly over the last six months. The additional burden of the spiralling energy costs only added to these operational challenges…’ • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. Carnival Corporation shares fell by almost 12% on Thursday after the announcement of a share placing. OTHER LEISURE: The Gym Group plc has announced that Penny Hughes, having served as chair of The Gym Group Board of Directors since its IPO in 2015, has notified the Company of her intention to retire from the Board with effect from today’s date. John Treharne, Founder Director of the Company and member of the Nomination and Sustainability committees, will be appointed Chair of the Board with effect from the same date… Twitter is reported to have spent $33m on dealing with Elon Musk’s proposed acquisition of the company… FINANCE & MARKETS: The Treasury has reported that rising interest rates in Europe could push up the size of the UK’s Brexit divorce bill by £5bn. Markit’s flash PMI for June shows the output index at 52.8, a 17mth low. Manufacturing was 52.2 and Services was 53.7… • See premium. Reply to this e/m to see a sample of the full email and / or to upgrade. Sterling up at $1.1987 and €1.174. Oil higher at $102.53. UK10yr gilt yield down 10bps at 1.94%. World markets heading lower on Friday. London set to open down around 42pts as at 6.30am. FORTHCOMING NEWS: Fairly active on the corporate front this week with fewer ONS statistical releases: Tuesday sees a Q3 update from Compass Group with FY numbers from Games Workshop and then Q2 results from Coca Cola in the US. Wednesday and Marston’s updates on Q3. On Thursday, Virgin Wines reports H1 numbers. 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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