Langton Capital – 2022-08-25 – Cash v profit margin, delivery, energy, IPO disasters, Whitbread etc.:
Cash v profit margin, delivery, energy, IPO disasters, Whitbread etc.:A DAY IN THE LIFE: Caught out by a late meeting yesterday followed by an emergency visit to the pub. Good luck to all of those kids (and their parents) awaiting GCSE results later this morning. Let’s move 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 SOME THOUGHTS ON DELIVERY. COMPETITORS WHO CHERRY-PICK (this went to clients a couple of weeks ago): Last month, we commented that playing tennis against a brick wall is nothing like as complicated as playing against an opponent. In the real world, opponents put spin on the ball and, appallingly, they try to do you in and actually make you lose whatever point you are contesting. And we said ‘the same can be true in business. What looks like a good idea on a spreadsheet can be the worst load of money-losing old garbage when put into practice.’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. PUBS & RESTAURANTS: Energy costs: The CBI has said that many viable companies face ‘distress’ unless urgent action is taken by the government to limit the damage from the energy crisis… Scottish Power CEO Keith Anderson has effectively proposed a £100bn taxpayer funded rescue package that would see annual household energy bills capped at about £2,000 a year…. The British Chambers of Commerce has written to the government suggesting ‘a comprehensive five-point plan to provide vital support to UK businesses…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Making a last visit to Ukraine, outgoing PM Boris Johnson has said that the high energy bills UK consumers and businesses are paying are part of the fight against Vladimir Putin. Supply issues: Drink supply should be secure. But disruption at the Port of Felixstowe could escalate until Christmas unless workers are given an improved pay offer… Labour issues: CEO of UKH Kate Nicholls comments on opportunities open to younger people saying ‘the hospitality sector offers a huge variety of options for people at all levels…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Our comments on the ‘Unholy Trinity’. We have commented on ‘un-lockdown losers’ saying that, as normality has partly returned, the shares that have fallen most notably share some characteristics. Some (if not many) are recent IPOs, online retailers and delivery companies. Revolution Beauty shares have been suspended as ongoing audit issues mean it won’t be able to publish its FY22 accounts on time…. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Other news: The National Federation of Fish Friers has said that fish and chip shops are facing “extinction” as a result of rising costs. Current PM-replacement contender Rishi Sunak has said that it was a mistake to take as much notice as the Cabinet did of scientists during the height of the Covid-19 pandemic… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. COMPANY NEWS: SSPG will open Starbucks and Burger King franchises at the Berlin Brandenburg Willy Brandt Airport Terminal 1. The outlets are scheduled to open in May 2023. JD Wetherspoon reports it is ‘the most visited licensed brand and the third most visited brand in the Great British hospitality sector.’ It quotes the CGA BrandTrack as showing that ‘20.5 million customers visited Wetherspoon pubs in a six month period.’ Starbucks is reported to have closed two more unionized stores, one in Seattle and one in Kansas City. Campari Group has agreed a deal with Catalyst Spirits to acquire a 15% interest in Howler Head Kentucky bourbon whiskey… Hogs Back Brewery has hosted a ‘30 at 30’ celebration for its 30th birthday, inviting 30 local loyal drinkers to have a celebratory pint of Tongham TEA. HOLIDAYS & LEISURE TRAVEL: Whitbread has acquired the 5 Strand property in London. It will develop a Hub by Premier Inn hotel, with total investment, including construction and related costs, of over £200m… On the back of Whitbread’s commitment to spending £200m to develop a Hub by Premier Inn with a Bar & Block restaurant attached on the Strand, interesting to note the company yesterday reporting that Simon Ewins, MD of Premier Inn UK, bought £30k worth of shares in the company at £25.31 per share. The governments of Japan and Singapore have announced relaxations to the countries’ Covid-19 entry rules in the coming weeks… Cirium has reported that the number of flights departing from the UK over the Bank Holiday weekend is 21% down on 2019. Doncaster Sheffield airport is reported to have extended a consultation on the future of the airport. Peel Group last month had said the site “may no longer be commercially viable.” OTHER LEISURE: Puresport, a CBD wellness brand, has passed its £1m crowdfunding target in ‘just a few hours’. FINANCE & MARKETS: Wholesale gas prices, though currently off their peaks, hit another record yesterday… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. The Telegraph, which has been cautioning on domestic house prices for some time, has said that ‘properties are suffering ‘down valuations’ as banks fear that house prices may fall. It says that lenders have been refusing to offer mortgages large enough to cover the agreed sales price… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Sterling mixed at $1.1842 and €1.1836. Oil higher at $101.75. UK 10yr gilt yield up another 12bps at 2.68%. World markets turning better yesterday and London set to open up around 18pts as at 6.30am. FORTHCOMING NEWS: Very quiet week in the run up to the August Bank Holiday weekend. Flash PMI numbers were released Tuesday. RETAIL WITH NICK BUBB: Nick is taking a well-earned break & is back after the Bank Holiday. |
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