Langton Capital – 2022-09-08 – RTN, CINE, Itsu, Energy cost support, inflation, property issues & other:
RTN, CINE, Itsu, Energy cost support, inflation, property issues & other:A DAY IN THE LIFE: Short of time again. We may have to constrain our emergency visits to the pub to days with a Y in them. And could somebody switch off the rain? 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 RESTAURANT GROUP – H1 NUMBERS: The Restaurant Group has this morning released H1 numbers and our comments thereon are set out below: The numbers: RTN reports total sales of £423.4m (up from £216.8m) with adjusted EBITDA (pre-IFRS16) of £41.7m (vs £11.2m). The company says PBT was £10.2m against a loss of £19.9m last year (both pre-IFRS16). RTN adds that the statutory loss, post IFRS16 and including the impact of exceptional costs, was £28.5m in the half year against a loss on the same basis of £57.6m in the prior year… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. PUBS & RESTAURANTS: Help with energy costs. Prime Minister Liz Truss has laid out her three-pronged plan to ‘get Britain working again’, ‘deal with energy bills’ and ‘ensure people can get doctors’ appointments’. As of writing, there are no details. An announcement in the Commons is due today. At PMQ, Ms Truss said there would be help for business. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Unit closures: CAMRA’s Pub Closure Report January to June 2022 shows that 485 pubs had closed (18.7 a week) up from 254 in H2 2021 (9.8 a week)… Inflation: Governor of the Bank of England Andrew Bailey, who had maintained that inflation was transitory, has told MPs that an energy bailout could mitigate against further rises in inflation. It is already running at 5x the rate the Bank is mandated to hold it at and it could be heading higher… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Property costs: Interesting comment from WH Smith yesterday. It said ‘we have identified further significant cost saving opportunities, most notably through reductions in rent.’ Such opportunities should be available to hospitality operators, at least those with good covenants, as well… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Labour issues: Figures from the ONS show that nearly 40% of hospitality businesses are facing skilled worker shortages… Trading trends: Zonal reports that 89% of consumers use cards or contactless payment every or most times they visit a pub, bar or restaurant… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Other news: Some pubs are reportedly ceasing printing menus because prices are changing too rapidly to make it worthwhile… The ICAEW CEO Michael Izza has ‘warned Prime Minister Liz Truss and her newly-appointed Chancellor of the Exchequer, Kwasi Kwarteng, that restoring growth in the economy and levelling up the UK must be a priority for a remainder of this Parliament, against a backdrop of deteriorating economic conditions.’ COMPANY NEWS: Itsu will increase pay by up to 13% across all of its approximately 1,200 staff in a bid to retain talent… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Beavertown has sold its final 51% stake of its business to Heineken for an undisclosed sum, bringing the business entirely under Heineken’s control. Back in June 2018, Beavertown had sold a 49% stake to Heineken for £40m. The Carlsberg Marston’s Brewing Company has announced that it proposes to close Jennings Brewery, Cockermouth next month. Following the closure, Jennings’ ales will be produced at Marston’s Brewery in Burton. Shaftesbury has that three more East Asian concepts are to open in Chinatown London. The new units include Seoul Plaza, The Eight and Kung Fu Noodle… Brown-Forman has acquired Spanish gin brand Gin Mare for an undisclosed sum… HOLIDAYS & LEISURE TRAVEL: Liz Truss has hailed the role of regional airports, saying ‘Regional airports including Doncaster-Sheffield airport are a vital part of our economic growth…’ OTHER LEISURE: Cineworld Group yesterday announced that its US businesses were entering the Chapter 11 restructuring process, which is ‘expected to significantly reduce debt and strengthen Cineworld’s balance sheet and liquidity position…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. The BBC, ITV, Channel 4 and Channel 5 spend on programmes from UK production companies rose 12% to a record £1.45bn last year, as the traditional broadcasters battled against American streaming services such as Netflix and Amazon’s Prime Video. Outlay by pay-TV companies, led by Sky, also reached a new high of £443m. Apple has launched the iPhone 14, saying it is its “most advanced” smartphone yet. It would be a shock, perhaps, if it wasn’t. FINANCE & MARKETS: The Halifax reported yesterday that the annual rate of house price inflation in the UK had slowed, but only modestly. The annual rate dropped from 11.8% in the year to July to 11.5% in the year to August… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. FORTHCOMING NEWS: A busy day today in an otherwise quiet (except for politics) week. A gentle run in before it becomes noticeably busier later in the month. Amidst a smattering of economic announcements and an updated from the ECB on Thursday, Restaurant Group reports H1 results to end June on Thursday and Gear 4 Music hosts its AGM on Friday. FINANCE & MARKETS: Sterling hit its lowest levels against the US$ in 37yrs yesterday… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Sterling mixed at the end with a pound buying $1.1504 and €1.1514. Oil lower at $88.67. UK 10yr gilt yield down 3bps at 3.02%. world markets mixed. London set to open up around 10pts as at 6.30am. YESTERDAY’S TWEETS: Support package. Size ranges from £0bn (now off the table), through £40bn to £100bn, £130bn and even £170bn. Uncertainty kills. Business urgently needs to know how much, when, and who gets it? Brutal world for landlords. WH Smith says ‘we have identified further significant cost saving opportunities, most notably through reductions in rent.’ With inflation running a a gazillion percent, that’s gonna hurt. BBC says ‘it is thought the cap won’t cover businesses, which has prompted a warning from insolvency experts.’ Not clear who knows what & what is speculation. But this might upset the applecart. [Ms Truss subsequently said at PMQ that it would extend to businesses] RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. |
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