Langton Capital – 2022-10-06 – UK services, Diageo, 888, cost of living, holiday supply, debt costs etc.:
UK services, Diageo, 888, cost of living, holiday supply, debt costs etc.:A DAY IN THE LIFE: Despite already being in the depths of our perennial relegation struggle, the Mighty Hull City still somehow managed to win a match last night by accidentally putting the ball in the back of Wigan’s net fractionally more times than they did ours. And that’s been something of a rarity this season so far but, with all of the troubles and travails out there at the moment, the plight of that great tower-of-the-north football team might have to take a backseat for a while. 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 https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN PUBS & RESTAURANTS: Services output: S&P Markit has reported its September Purchasing Managers’ Index for the UK showing that, though the number was bang on 50.0 (indicating neither expansion nor contraction), it was a shade ahead of estimates. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Cost of living crisis: The rate on a typical two-year fixed rate mortgage has risen above 6% for the first time in 14 years per Moneyfacts… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Higher petrol prices? A number of OPEC+ countries have said that they will cut the amount of oil they export. This could raise petrol prices in due course. OPEC+ members include Saudi Arabia and Russia. Every little helps: Tesco yesterday committed to holding back on prices rises as it says consumers are ‘watching every penny’ as they cope with the cost of living crisis… Consumer trends: The MA comments on the evolution of the beer market, saying people are not venturing out as frequently and when they do, they will drink less but better. Draught beer still accounts for 48% of sales, by value, in a pub… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Some signs that US consumers may be baulking at higher restaurant prices in the US… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Retail shares fell sharply yesterday on talk of a poor Christmas. Next dropped 5.3%, M&S fell 5.4% and sportswear company JD Sports was down 3.2%. COMPANY NEWS: Diageo has issued a brief trading statement to accompany its AGM. CEO Ivan Menezes says ‘we have made a good start to fiscal 23, with organic net sales growth across all regions, reflecting our advantaged portfolio, our continued investment in brand building and our agile supply chain and culture. I would like to thank my colleagues for their continued creativity and drive…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The Kelham Island Brewery, Sheffield’s oldest independent brewery, has reportedly been saved from closure by a six-strong group made up of beer, music and art fans. PepsiCo-owned Lipton will next year launch a range of alcoholic malt beverages named Lipton Hard Iced Tea… Clays, an indoor virtual shooting experience, is set to open its second site in Canary Wharf’s West India Quay. The company’s first site is located in Moorgate. Tortilla, which reported H1 numbers on Monday, is to present them via the Investor Meet Company platform at 2.30pm. Cooks Coffee Company, owner of the Esquires and Triple Two café chains, plans to grow its number of stores across the UK and Ireland by 10% this year… Budweiser Brewing Group has announced that it aims to ‘transform’ the dispensing of draught drinks ‘with revolutionary precision blending technology.’ Budweiser says it has ‘piloted a revolutionary new dispense system that enables hospitality owners to significantly expand their draught portfolio.’ BrewDog-owned company Draft House has reported its full year numbers to 31 December 2021. The results for the year have been significantly impacted by Covid-19, with periods of closure & restrictions. Draft House reports revenues up 6.6% to £4,899k. Gross profit was up 22.2% to £1,478k, with gross profit margin up 3.9 percentage points to 30.2% for the year… HOLIDAYS & LEISURE TRAVEL: Travel trends: The CAA renewed 923 Atol licences in September, up from 871 last year, with another 60 applications remaining in the process. However, the overall number of Atol holders was down from 1,618 in April to 1,579 as of September. Tui remains the biggest UK tour operator with a licence for 5,336,410 public sales over the 12 months to September 2023, up from about 5.1m this summer. However, Jet2holidays closed the gap with an Atol for exactly 5.3 million public sales, up from 4.656m this summer. On the Beach, We Love Holidays and easyJet Holidays are in numbers three, four and five positions respectively. Costs: The Business Travel Association has said that the cap introduced by Heathrow Airport, which will be lifted on 29 October, had the effect of driving prices up… Company news: Club Med reports a strong recovery in the European and American markets in H1 2022, with business volume up 300% YoY. Turnover of €811m was only 10% below H1 2019 revenue. The company said that from March it ‘experienced a very strong rebound taking advantage of the “Revenge Travel” phenomenon’. Jurys Inn and Leonardo Hotels UK & Ireland is to rebrand its 35 Jurys Inn hotels to Leonardo Hotels as part of its growth strategy. A HVS report states that the Portuguese capital of Lisbon will continue to attract keen interest from investors as the popularity of the city grows, with nearly 2,500 new hotel rooms due to open over the next 18 months. Tourism in Lisbon is expected to reach pre-pandemic levels by 023-24. OTHER LEISURE: 888 has released a trading update from 888AFRICA saying that the company has launched 888bet in Kenya, Tanzania, Mozambique, and Zambia. 888 says this is a ‘significant milestone in the brand’s ambitious growth strategy to expand across the continent…’ The Times reports that Ambassador Theatre Group is in moves ‘to refinance its debt with a lending deal worth up to £1.2 billion.’ It says the group, backed by Providence Equity Partners, was founded in 1992 and operates 58 venues as well as ticket platforms. FINANCE & MARKETS: The CBI comments on the PM’s Tory Party Conference speech yesterday saying the target of 2.5% growth for the economy ‘is the right ambition, it’s now down to delivery…’ The Society of Motor Manufacturers and Traders has reported that a rise in demand for electric vehicles helped drive a 4.6% rise in new car registrations in September. The Times reports estate agent Knight Frank as saying that a combination of “spiralling” energy costs, high inflation forecasts and increased interest rate expectations will turn its earlier estimate of house price growth of 1 per cent growth next year and 3 per cent in 2024 into a decline of 5 per cent in each of the next two years. It says prices will go “back to the same level as last summer”. In real terms, that will represent a major price fall. Sterling weaker at $1.1353 and €1.1450. Oil up at $93.51. UK 10yr gilt yield up 16bps at 4.03%. World markets lower yesterday but they were turning around in the Far East. London set to open some 44pts higher as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. |
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