Langton Capital – 2023-06-28 – Various Eateries, profit recession, costs, RBG, DGE, holidays & other:
Various Eateries, profit recession, costs, RBG, DGE, holidays & other:A DAY IN THE LIFE: Have you ever stopped to think how many times parents, teachers, magistrates and humble citizens have said to somebody or other ‘don’t do that, you’ll spoil it for everybody’? Because it must be countless millions. But rarely has a true statement been such an utter waste of breath because, whilst the people for whom ‘it’ is being spoilt may be minded to listen, those doing the spoiling will almost certainly not be. And, if you’re saying it to a barely sentient being, human or otherwise, it’s doubly a waste of breath as I found when telling the blasted squirrels in our garden that, having brought down and destroyed our umpteenth bird feeder this year, I wasn’t going to put any more up. They looked suitably guilty, of course. Or it may just have been their normal furtive, sly demeanour as they slunk around with hunched shoulders and sour looking scowls on their faces. 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 PUBS & RESTAURANTS: Sales up, profits down. The idea of a profits recession: The rise in the rate of VAT on food and non-alcoholic drinks at the end of Q1 last year means that taxation is taking a larger proportion of the cash going into operators’ tills. This implies that rising sales could be accompanied by falling profits… • 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. Inflation: Despite some comments that food price inflation was abating, the CGA Prestige Foodservice Price Index rose by 21.6% in the year to May, a shade below the record high of 22.9% of December 2022…. • 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. Supermarket chiefs yesterday denied to MPs that their companies were profiting unduly from inflationary price rises. The BRC yesterday said that UK food prices rose 14.6% year on year in June… • 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. Costs: The Fresh Produce Consortium (FPC) claims that the UK’s post-Brexit border strategy risks further pushing up food prices…. Trading: Zonal and Toggle report that bookings for Father’s Day 2023 rose by 27% YoY with sales of hospitality gift cards up 88%… Other news: Research from CACI shows that the number of transactions at competitive socialising venues are up 9% and sales are up 5%, for March 2023 vs October 2022…. The Wine and Spirits Trade Association (WSTA) is warning that alcohol tax rises will further worsen inflation and threaten the survival of UK wine and spirits businesses… • 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. The government has opted to extend the pavement licence regime introduced as part of the government’s post-Covid regulatory easements for the hospitality sector. Commenting on the reduction in alcohol harm in Scotland, the British Beer & Pub Association CEO Emma McClarkin has said the report is “positive” but there are questions over how much of the reduction in harm should be directly attributed to the move to Minimum Unit Pricing…. The High Street. Boots is to shut 300 high street stores. This will leave the company with around 1,900 units in the UK. VARIOUS EATERIES – H1 & TRADING UPDATE: Various Eateries has reported H1 numbers for the 26wks to 2 April saying that group revenue increased 16% on the comparable period in the prior year to £20.6m (H1 2022: £17.7m). The company adds that ‘group LFL sales, excluding the benefit of the reduced rate of VAT for hospitality businesses in the prior year, were marginally up.’ Headline numbers show a loss before tax of £4.3m (2021: loss £2.6m) with a loss per share of 5.2p against a loss per share of 3.1p in the prior year. The company nonetheless says it ‘is pleased with the revenue performance, particularly given the challenging economic environment, disruptions from train strikes, and an unseasonably wet and dull spring….’ • 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. The company updates on current trading saying that ‘in the current economic climate, the Board has prioritised sales, customer satisfaction and maintaining the Group’s value proposition ahead of trying to maintain previously industry-normal levels of margin…’ • 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. COMPANY NEWS: Per MCA, Revolution Bar Group CEO Rob Pitcher has said that the £16.5m acquisition of Peach’s 21 premium food-led pubs has diversified the business… Salford-based brewery and pub retailer Hydes has invested £3.6m into a new site in Heswall, on the Wirral, Merseyside, set to open later this year. The £1.3m acquisition of the building is Hydes’ first property acquisition in more than five years. Premium Italian restaurant operator San Carlo Group reports revenue up 143% to £52.5m, with profit after tax of £1.34m in the year ended 24 September 2022…. Yorkshire-based brewery T&R Theakston reports revenue up 14% to £6.7m for the year ended 31 December 2022, with the company making a pre-tax profit of £18k, up from a loss of £2k in the prior period…. Diageo has ended its partnership with Sean Combs, known as Diddy, after the latter accused the company of racism…. Be At One is hosting a nostalgic ‘90s themed party in the country’s largest cities – London, Birmingham and Manchester – to mark the 40-strong bar chain’s 25th anniversary. HOTELS & LEISURE TRAVEL: A KPMG poll of around 3,000 people suggests that most consumers are still prioritising a summer holiday this year despite the cost of living crisis… • 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. American Express Global Business Travel (GBT) predicts car rental rates across Europe and other regions will be pushed up by strong demand and supply-side issues…. ACI Europe figures show that Europe’s airports achieved a net profit of €6.4 billion last year after more than €20 billion in accumulated losses since 2019…. OTHER LEISURE: Sky News reports that the ‘long-standing owner of David Lloyd Leisure, one of Britain’s biggest upmarket health and racquet sports chains, is preparing to listen to offers of more than £2bn….’ Sportech is to host a General Meeting on 19 July re its proposed share restructuring… Manchester United has issued a revenue and profit upgrade, with revenues now expected to reach a record £630-640m in the 12 months to 30 June 2023, up from the previous forecast of £590-610m. The football club also nudged upwards its expectations for adjusted profits to between £140-150m. FINANCE & MARKETS: Chancellor Jeremy Hunt has left his position on the fence and said that the Bank of England’s economic modelling needs to improve… Tom Thackray, CBI Director of Decarbonisation, has commented on the UK’s lack of progress on moving to net zero saying ‘the UK needs to hit the accelerator on its net zero journey, not only to reach our immediate and long-term targets but also to capture a share of fast-growing green markets.’ Sterling weaker at $1.2724 and €1.1619. Oil lower at $72.81. UK 10yr gilt yield up 9bps at 4.38%. World markets broadly better yesterday & London set to open around 21pts 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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