Langton Capital – 2018-07-26 – Compass, Beer ties, Fever-Tree & other:
A DAY IN THE LIFE:
Anyway, Langton left a sunny Ludlow yesterday pretty impressed with the town but, it has to be said, the populace really doesn’t know how to riot.
Further south still, tomorrow. On to the news:
• Diageo has reported preliminary results for the year ending 30 June 2018, with the group’s net sales up 0.9% to £12.2bn and operating profit climbing 3.7% to £3.7bn. The group’s basic EPS has increased 14.8% to 121.7p, while the board has approved a share buyback programme to return up to £2bn to shareholders.
• There has been large increase in the number of publicans citing beer ties as the biggest factor negatively affecting their turnover in the last 12 months, the MCA has reported. The MCA’s Pub Market Report has found that 26% of respondents who have seen their turnover fall have blamed beer ties, up 16% on last year.
• Marks & Spencer is to end its Lunch To You operations as the group looks to simplify operations. The service had offered van-based delivery in partnership with Greenore to office parks.
• Compass Group have reported Q3 organic growth up 5.7%, with the group citing strong trading in North America as an acceleration in Europe as the main contributors. Compass have stated their expectations for the rest of the year remains unchanged at around 4-6% organic growth.
• Pub operator and brewer Brakspear has relaunched the Frogmill in Gloucestershire. The redevelopment has cost £3.5m and is the largest the group has taken on.
• CEO of Fever-Tree, Tim Warrillow has stated that as a result of the group’s recent strong results, he ‘anticipates that the outcome for the full year will be comfortably ahead of its expectations’. Investec have increased projected full year revenue for the group at around £220m, up £15 million on previous estimates.
• Louis Vuitton Moët Hennessy reports group revenue up 10% to €21.8bn in H1 2018 with the US, Europe and Asia reporting profit from recurring operations was €4.6 million, up 28% yoy. The Wine & Spirits division reported revenue down 1% yoy to €2.2m but showed organic revenue growth of 7%. Bernard Arnault, chairman and CEO of LVMH, commented on the group’s performance: ‘The excellent results of the first half of the year attest to the strong desirability of our brands and the effectiveness of our strategy. The performance of the first half is even more remarkable given the unfavourable currency environment.’
• UKHospitality welcomes the inclusion of the Agent of Change principle which provides protection for music venues. Chief Executive Kate Nicholls said ‘Nightclubs and gig venues are some of our most important assets in communities in every region of the country. It is absolutely vital that their status and ability to act as important economic and social assets be recognised and safeguarded.’
• UKHospitality supports the Home Office toolkit designed to help EU citizens apply for settled status in the UK. Chief Executive Kate Nicholls said: ‘Dissemination of information to employees is going to be absolutely crucial as we move towards Brexit. Members have consistently told us they need information from Government to reassure their EU staff they are welcome in the UK and so this is a big step forward.’
• Anthony Pender will stand down as chairman of the British Institute of Innkeeping shortly, with a spokesman saying ‘During the four years of his tenure, Anthony has led the way in making the organisation financially stable and sustainable and, in conjunction with chief executive Mike Clist, has restructured the membership programme and underpinned organisational structure.’
• Marriott announces a $500m Ritz development in Manhattan, New York, scheduled to open in 2021.
• Ryanair announces cuts to its Dublin-based fleet from 30 planes to 24 in winter 2018, putting 300 jobs at risk. About 100 pilots and 200 cabin crew have been given notice. Ryanair blamed a downturn in forward bookings and airfares in the Republic of Ireland, partly as a result of recent rolling strikes by Irish pilots.
• Per MCA, All Star Lanes managing director Christian Rose has stepped down following a decision to take the firm, which was previously assessing strategic options, off the market. Rose joined the group in 2015 overseeing its turnaround.
• Facebook reported its number of users at 2.23bn at the end of June, up 11% yoy, its slowest growth in more than two years. Shares fell by more than 20% yesterday on the poor figures, with the company reporting revenue gains to slow.
Yesterday’s song was Thunderstruck by AC/DC. Today, who sang:
He stands like a statue,
Becomes part of the machine
Feeling all the bumpers
Feeling all the bumpers
RETAIL NEWS WITH NICK BUBB:
• Howden: Many “white van men” have either been in Russia watching the World Cup or have simply found it too hot to work, so the trade kitchens business Howden could have been excused a slightly cautious outlook statement today with the interims (for the 24 weeks to June 16th), but the company has said that gross UK sales have been up 5.3% in the first 4 weeks of the second half and full year expectations are unchanged. In the first half UK revenue grew by 12.1% gross and by 10.7% on a same depot basis, albeit off the back of reduced gross margins, to leave PBT up to £68.8m from £65.6m.