Langton Capital – 2022-08-02 – Domino’s, Revolution Bars, Gregg’s, AG Barr, jobs, footfall etc.:
Domino’s, Revolution Bars, Gregg’s, AG Barr, jobs, footfall etc.:A DAY IN THE LIFE: Bit busy with news releases today. 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: Employment levels: Fourth has reported that ‘hospitality staffing numbers are nearing pre-pandemic levels, but a series of factors such as increasing rates of pay, high staff turnover, and the changing make-up of the workforce, are piling pressure on employers…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Consumer spending, cost of living crisis: Although the government has made a gesture towards reducing taxes on motor fuels, the RAC claims that fuel prices are at least 20p per litre cheaper in the eurozone’s big four economies of Germany, France, Italy and Spain… Legal & General research suggests that over a quarter of households earning less than £20,000 worry they will be unable to manage when utility costs rise again in October and January next year. It adds that around half of UK households are concerned about keeping up with the rent or mortgage payments. • See premium. Reply for sample or to upgrade. Single £324, multiple £595. The CEBR reports ‘we are seeing a significant increase in consumer borrowing, with many households feeling the strain of living costs increasing, prompting consumers to fund their expenditure through borrowing.’ Footfall: Springboard reports that footfall in the week to 30 July bounced back after the extreme heat of the previous week. It reports that footfall was up 13.1% but down 17.3% on 2019. Footfall was up by 6.2% week-on-week… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Other news: In addition to having helped drive revenues in a number of on-trade outlets, BBPA CEO Emma McClarkin said that the Lionesses’ triumph over Germany in the UEFA Women’s Euro final was “Incredible”, “Historic” and a “game changer”. UKHospitality CEO Kate Nichols congratulated the team, stating “the women brought it home”. May’s Popmenu survey in the US suggests that consumers in the States are still spending 40% of their food budget in restaurants as opposed to in supermarkets… Waitrose is scrapping best before dates on hundreds of products in an attempt to tackle food waste. Tesco and Marks & Spencer have also scrapped best before dates on some of their products. The Night Time Industries Association has said that Britain has 20% fewer nightclubs than it did pre-Covid. It says that numbers have been in decline for the last 15 years or so… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. COMPANY NEWS: Gregg’s has reported H1 numbers to 2 July saying that revenues rose from £546.2m to £694.5m with PBT of £55.8m against £55.5m last year. EPS was 44.8p this year against 43.2p last year and the dividend is held at 15p. Revenues and profits were aided by lower rates of VAT last year. The company says that H1 LfL sales were up 12.3% on 2019. It adds that its ‘flat profit outcome primarily reflects re-introduction of business rates, increase in VAT and higher levels of cost inflation…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Domino’s Pizza Group has reported H1 numbers to 26 June saying that it is ‘continuing to gain market share in challenging conditions’ and adding that it is ‘well placed in this environment with clear value proposition and strong operating model.’ It says that guidance for the year is unchanged. DOM reports system sales down 5.6% at £710.5m with revenue up 0.2% at £278.3m. Underlying PBT is £50.9m (2021: £60.8m) and EPS on a statutory basis is 9.5p (2021: 8.9p). The group is recommending a H1 dividend of 3.2p (2021: 3.0p). The group says that ‘profitability is expected to be second half weighted…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Revolution Bars Group has updated on full year trading to 2 July, saying that ‘we are pleased to confirm FY22 results are expected to be in line with expectations, which were upgraded in the announcement of 14 June 2022. Full year like-for-like sales of 1.3% have been delivered in our 56 English bars after 19 July 2021 when restrictions were fully lifted in England…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. AG Barr has updated on trading for its H1 to end-July saying that ‘revenue for the first half of the financial year is expected to be c.£157m.’ It adds that this represents ‘c.19% on a like-for-like basis’. The company says ‘we anticipate that the UK’s current high level of inflation will continue across the balance of the year, with economic conditions becoming increasingly challenging for consumers and industry alike…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Heineken is in the news after its Q2 numbers, saying that beer prices will have to rise further. Danny Meyer is to step down from his role as CEO of Union Square Hospitality Group in the US after nearly 40yrs in the job. He is staying on as executive chair. HOLIDAYS & LEISURE TRAVEL: The World Travel & Tourism Council warns that the travel recovery is at “serious risk” as 128,000 jobs go unfilled across the UK… Flight disruption. Sepla union pilots for EasyJet in Spain have voted to strike for nine days in August to demand better working conditions. The action in three periods of 72 hours each is due to take place on August 12, 13 and 14; 19, 20 and 21; and 27, 28 and 29. Manchester airport has reiterated its advice for travellers to arrive 3 hours before departure as the summer peak holiday period starts… A panel of European business leaders responsible for corporate travel from across ten industries has claimed that business trips will be more purposeful but fewer in number post pandemic. Accor’s Sophie Hulgard, northern Europe senior vice president of sales, expects 20% fewer business trips this year 2022 compared to 2019. France is reported to have removed all Covid entry restrictions for visitors. A “small fire” which broke out at a hotel at Legoland Resort in Windsor yesterday is being investigated. Guests are being refunded or offered alternative accommodation after the hotel was closed. British Airways is reported to have halted sales of tickets on short-haul flights from Heathrow Airport until 8 August in order to cap passenger numbers. OTHER LEISURE: Elon Musk is countersuing Twitter, with the lawsuit filed hours after chancellor Kathaleen McCormick of the Delaware court of chancery ordered a five-day trial beginning 17 October to determine if Musk can walk away from the deal. Sony has trimmed its profit forecast after a weak Q1 for PlayStation, driven by waning consumer interest due to a lack of new games and an easing of COVID-19 constraints dampening stay-at-home gaming. FINANCE & MARKETS: The Institute of Directors has reported that UK business leaders are cutting investment plans in the light of rising prices & Brexit trading problems and skills shortages. The IoD says inflation is the most common reason for pessimism across directors. • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Markit has reported PMI numbers for UK manufacturing saying that the sector ‘started the third quarter on a weak footing.’ The index fell to a 25 month low of 52.1, down from 52.8 in June. Markit says ‘output contracted for the first time in over two years as intakes of new work and new export business both continued to decline…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Sterling up at $1.2257 and €1.1923. Oil lower at $99.18. UK 10yr gilt yield down 7bps at 1.90%. World markets lower yesterday with London set to open down around 46 points as at 6.30am. FORTHCOMING NEWS: It’s August now but nonetheless, we have scheduled updates from Heineken, Domino’s, Gregg’s, AG Barr, Revolution Bar Group, Just Eat and Gym Group on this side of the Atlantic and by global majors Marriott, Molson Coors, Starbucks, Airbnb, Uber, Shake Shack & YUM Brands on the other. The Bank of England opines on interest rates on Thursday and Halifax briefs on house prices on Friday. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £324, multiple £595. |
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