Langton Capital – 2023-01-05 – Gregg’s, Pizza Express, Byron, Glendola, energy support, inflation etc.:
Gregg’s, Pizza Express, Byron, Glendola, energy support, inflation etc.:A DAY IN THE LIFE: Bad planning, bit pushed this morning but just time to say that the battle to save the possessive apostrophe appears to be going sub-optimally. I.e., we’re losing it with Gregg’s this morning being a case in point. There, as we’d started using the apostrophe before we registered that the company itself didn’t, we dug our heels in and pushed on but, in the end, to what avail? Because, if someone wants to call themselves Peaches HoneyCream EarthTremor Smith, then that, we have to suppose, is their name. And who are we to call it any other way? But we may struggle on for a while though, as with names that are stuck together with no gap these days or where capital letters are strewn randomly throughout a word, we might have to ultimately give up the ghost. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) 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: Energy support: Chancellor Jeremy Hunt yesterday outlined plans to reduce energy support for businesses to business leaders yesterday. He will make a formal statement in the House of Commons next week. The chancellor said the package would continue ate a “lower level” than is the case presently. This will apply from March… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Meanwhile, a continued drop in the cost of wholesale energy does suggest that average annual bills could soon come in below the level of the government’s energy support programme per Cornwall Insight… WFH: The FT reports that ‘the recovery in activity in London’s offices and hotels after the pandemic lockdowns lagged behind many rival European cities in 2022.’ Quoting data that measure the use of lifts in buildings, the paper says ‘offices and hotels in Amsterdam showed the largest increases in elevator usage last year’ with London offices ranked fifth in terms of how much the use of lifts rose during the year. London’s hotels came tenth… Train strikes: The BBC reports Mick Whelan, train drivers’ union leader as saying that drivers may intensify their campaign of industrial action as they seek a breakthrough in the ongoing dispute over pay. He says his union now had a stronger mandate than before. December trading: Plenty of reports, some of them contradictory at first glance. S4Labour reports that the hospitality industry saw LfL sales up 17% YoY over the Christmas period… On the other hand, whilst looking at a much shorter time period, The Oxford Partnership’s Christmas 2022 Flash Report shows that the key festive trading days of Christmas Eve, Christmas Day, Boxing Day, New Year’s Eve and New Year’s Day saw a rise of 1.4% in sales compared to last year. However, this was down by 13.9% against pre-pandemic levels, with city centres the worst performing due to travel disruption from the rail strikes. Inflationary pressures / cost of food: Kantar reports that supermarket prices rose by 14.4% YoY in December, down from 14.6% in November and 14.7% in October. Overall, shoppers spent an extra £1.1bn this December compared to last year, driven higher by a boom in demand for cold and flu medicines. Inflationary pressures / competition for staff: J Sainsbury has said it will raise the pay of its 127,000 hourly-paid staff in February to at least £11 for those working outside London from £10.25 now. London staff will get £11.95, up from the current £11.30. The raise, which has been brought forward from March, is reported to be the second increase since October. More on inflation: With the transport and the health service beset by strikes, PM Rishi Sunak has said he cannot raise public sector wages because to do so would fuel inflation… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Consumer behaviour: The Bank of England reports that individuals borrowed an additional £1.5 billion in consumer credit in November, higher than the previous 6-month average of £1.1 billion… Economy: The British Chambers of Commers has said that it sees ‘No Signs of Business Recovery’, this according to its Quarterly Economic Survey Q4 2022. Hospitality firms are amongst the most gloomy. See Finance & Markets below. Other news: The Retail Bulletin reports that ‘Morrison’s invests £16m in cutting over 130 prices across entry-level products.’ It says this is to ‘help customers save money during the post-Christmas squeeze in January.’ There had been earlier comments that Morrison’s had raised its prices post its takeover by US private equity firm Clayton, Dubilier & Rice… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. A former senior buying manager at Asda has warned that British egg farmers are quitting ‘every week’ over soaring costs, suggesting that the UK will struggle for home-grown foods this year. Former Marston’s CEO Ralph Findlay has commented on his award of an OBE in this year’s New Year’s Honours list, saying he will ‘continue to make the case for the huge contribution the hospitality sector makes to the UK – not just to people’s lives and livelihoods, but by contributing hundreds of millions to Government in tax receipts, providing millions of jobs, and helping to sustain communities. These points bear repeating, often and loudly…’ The NTIA reports that late night operators have lost 21% of their normal December trade due to the impact of train strikes and the cost-of-living crisis… Data from The GCMA and The Ministry of Economy show that Tequila exports totalled $3.6 billion between January and October last year, up 34.1% over the same period in 2021. Diageo confirmed that Tequila is one of the fastest-growing spirits categories. GREGG’S FULL YEAR TRADING UPDATE: Gregg’s has updated on Q4 and full year trading to end-December saying that the group had a ‘strong quarter [that] ends a year of encouraging strategic progress.’ The company says total sales were up 23.0% to £1,513m (2021: £1,230m). Q4 sales were up 18.2% and LfL sales for the full year were up 17.8%. Some 186 new shops were opened in the year with 39 closures to leave the group with 2,328 shops trading as at 31 December 2022. Gregg’s says it has a ‘robust cash position to support investment in growth plans’ and… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. COMPANY NEWS: Glendola Leisure, the London-based operator of a number of bars & restaurants, has reported full year numbers for the period ended 26 March 2022 to Companies House… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The MCA reports that Five Guys is set to open in Queensway and Bridgend ‘very soon’. In the last three months of the year, the Sir Charles Dunstone-backed business opened nine restaurants, taking its UK tally to 157. CEO John Eckbert told MCA ‘I still think we could get to 250 and still have room to grow here in the UK’. Pizza Express MD Zoe Bowley is to leave the company after 12 years with the chain. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Byron owner Calveton UK, which owns Famously Proper, is considering its financing options reports Propel. Wasabi Sushi & Bento has said it is continuing ‘to research and evaluate opportunities to expand its portfolio within the UK…The expansion into more suburban areas is a result of the strong sales performance of similar suburban sites in the existing estate, and the business sees this as an attractive area for future growth’. Hilco has lent £40m to Wilko to secure its long term future. Wilko had already received a £30m emergency loan to see it through the Christmas trading period and completed the sale and leaseback of its distribution centre for £48m. Suppliers to Wilko have had their credit insurance withdrawn according to reports. Manchester Brewing Company has shut due to financial pressures, blaming debts incurred during lockdown, the effect of the cost-of-living crisis on trade plus spiralling costs. HOLIDAYS & LEISURE TRAVEL: China warns of retaliation to travel restrictions imposed by several countries on Chinese arrivals… OTHER LEISURE: In a further breach with policies of the last 12mths (and indeed in some cases of the last 12yrs), the Culture Secretary, who is apparently Michelle Donelan, is reported by The News Agents podcase as having written to Rishi Sunak recommending the government drops its plans to privatise Channel 4. Amazon is to cut over 18,000 jobs or around 6% of its workforce. Meta has been fined €390m euros by the Irish Data Protection Commission for breaking EU rules by failing to secure permissions and using peoples’ data for ads on Facebook and Instagram… FINANCE & MARKETS: The British Chambers of Commers has said that it sees ‘No Signs of Business Recovery’, this according to its Quarterly Economic Survey Q4 2022. It says ‘after significant declines across all business conditions tracked by the BCC in Q3, most indicators have stabilised at a low level…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The Bank of England yesterday reported a sharp drop in mortgage approvals for November. It says ‘mortgage approvals for house purchases decreased to 46,100 in November from 57,900 in October…’ The latest figures from the Bank of England also show (some) people were borrowing more on credit cards and some (other) people were saving more. New car registrations in the UK fell to their lowest level in 30yrs last year per the SMMT. Sterling up at $1.2036 and €1.1342. Oil lower at $78.92. UK 10yr gilt yield down 15bps at 3.50%. Markets up yesterday but London set to open down around 7pts as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. 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