Langton Capital – 2023-05-09 – Crowning, consumer spend, TUI, Prezzo, RTN, Urban Pubs, Carlsberg etc.:
Crowning, consumer spend, TUI, Prezzo, RTN, Urban Pubs, Carlsberg etc.:A DAY IN THE LIFE: So the king got a new hat on Saturday and, with the weather doing what it did, it wasn’t long before I wished that I had done the same as the rain came down such that the water table threatened to move above ground level. My invitation to Charles’s gig presumably still being in the post, I was unable to be at the event in person. Anyway, another short week courtesy of the coronation so let’s move 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 are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN THE ECONOMIC IMPACT OF THE CORONATION: Feedback welcome, fuller comments later. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. PUBS & RESTAURANTS: Barclaycard & consumer spending: Barclaycard has reported that ‘consumer spending grew just 4.3 per cent in April, yet summer holiday planning and Eurovision ticket sales boosted travel and entertainment.’ That is a less-than-impressive number in total given the level of inflation but it is better news for leisure & hospitality (at least in parts)… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Football: Saturday 7 May marked the first time 3pm football has been shown live on TV in what should prove to be a boost for the hospitality industry… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Other news: Outlook. Propel & KAM have produced a ‘State of the Hospitality Nation’ research paper and report that ‘75% of operators told us that their like-for-like sales were up over the course of the year, increasing on average by 24%.’ Comps remain soft and ‘high inflation means sales continue to lag pre-pandemic levels in real terms.’ Driving sales are a number of factors including premiumisation and a move to an experiential offer. Soft drinks. CGA reports that soft drinks sales are up strongly in Q1. It says they reached £1,007m in the first quarter—up by an inflation-beating 12% year-on-year…. USA market info from CGA shows that the frequency of visits to On Premise venues has remained consistent across the last 6 months… COMPANY NEWS: Restaurant Group. RTN hosts is AGM next week (on 23rd) and criticism concerning the CEO’s pay packet is reported to be mounting. Oasis says Andy Hornby’s pay is ‘disproportionate’ and proxy advisor Glass Lewis says it has ‘serious reservations’ about pay levels at the company…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Prezzo is reported to be pressing creditors to write off or write down some of their debts in order to ‘restore the group to financial stability’. Urban Pubs & Bars London Ltd has reported its FY numbers for the period ended 1 May 2022 to Companies House. On 29 August 2021 the shares in the company’s parent were acquired by a new investment vehicle jointly owned by the business’ original co-founders and funds under management by Davidson Kempner and Global Mutual Properties Limited…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Moody’s reports that Darden Restaurants’ purchase of Ruth’s Hospitality Group Inc. for $715m in cash ‘is credit positive because it will complement and diversify Darden’s existing portfolio of brands….’ Restaurant Business reports that Subway now has its lowest number of US restaurants since 2005 having closed around 571 in 2022. Vegan restaurant chain Vurger Co has been bought out of administration via a pre-pack disposal to Neil Potts and Rachel Hugh, who founded the group in 2016. Monster Beverage Corporation reports Q1 sales up 11.9% to $1.7bn with operating income up 21.4% to $485.1m. The company implemented pricing actions in the United States and certain other international markets in 2022 and continued to implement price increases in certain international markets in Q1, all of which positively impacted gross profit margins. … Carlsberg has settled a legal case that has been ongoing for 11 years which was part of a wider complaint lodged by the German Federal Cartel Office…. HOLIDAYS & LEISURE TRAVEL: TUI CEO Sebastian Ebel has warned that last-minute deals and cheap flights will be very much the exception this year. He… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Hostelworld has updated on trading at a statement that will be read at its AGM later today. The company chairman, Michael Cawley, will say ‘bookings in many key destinations are above 2019 levels with the Asian market, in particular, recovering strongly as Covid related restrictions were lifted….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. PPHE Hotel Group reports that it is repositioning its Berlin Mitte property into a new generation art’otel branded hotel…. Active Travel Group, which specialises in adventure travel, has reported a ‘record year’ of growth across its brands. The company reports full year revenues of £42 million, up 47% on the previous year and 38% compared to pre-Covid sales… IAG has upgraded its full year projections after it recorded Q1 profits for the first time since pre-pandemic 2019. UKHospitality CEO Kate Nicholls claims that short-term lets are running rampant and undercutting hospitality venues, calling it the ‘wild west of the accommodation market’… InterContinental Hotels Group CEO Keith Barr has announced his decision to step down from his role, with his final day as CEO being 30 June. Keith will be succeeded by Elie Maalouf, a member of IHG’s Board and Executive Committee, who has led IHG’s Americas business as regional CEO for the past eight years. Airbnb is reported set to fight Michael Gove’s holiday letting crackdown, which it calls ‘communist’ in its approach. OTHER LEISURE: LinkedIn is to cut 716 jobs out of a 20,000 workforce. It says it is seeing ‘customer demand fluctuating more.’ FINANCE & MARKETS: The Bank of England’s MPC will rule on interest rates in the UK this Thursday. A 25bp rise is likely. UK rates will remain below those in the US and above those in Europe. Last week, after delivering their latest 25bp increase in Europe, President Lagarde at the ECB said ‘we are not pausing – that is very clear… We know that we have more ground to cover.’ The CEBR points to recent surveys in the UK (and elsewhere) and suggests that the ‘data have painted a more positive picture of business activity for most developed economies…’ S&P released the construction PMI for the UK in April last Friday, saying ‘UK construction companies remained in expansion mode during April, but the latest survey data indicated uneven growth across the sector…’ The US Labour Department said on Friday that employers added 253,000 jobs in April, ahead of expectations. This should diminish recession fears but keep upward pressure (or prevent downward pressure) on interest rates. Zoopla reports that the UK housing market is moving into balance. It says there has recently been a steady recovery in demand. Zoopla says that prices are up 3% over the last year but down around 0.7% in the last three months. Make UK has said that a decade of “flip-flopping” by Conservative governments has made the UK a less attractive location in which to invest. Sterling has hit 12mth plus highs on the back of reports that interest rates may have to rise beyond 5% in order to cut inflation…. Sterling up at $1.2612 and €1.1476. Oil price higher at $76.64. UK 10yr gilt yield up 11bps at 3.76% on interest-rate rise concerns. Markets broadly better on Friday & London set to open up around 7pts higher as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. |
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