Langton Capital – 2021-10-05 – Gregg’s, Compass, Hotel Choc, The Budget, supply, Xmas & other:
Gregg’s, Compass, Hotel Choc, The Budget, supply, Xmas & other:A DAY IN THE LIFE: It’s going to be one of those weeks. One of the ones where the day-job gets in the way of, well, the day-job and, because the number of hours in the day don’t come with much give, you’re pinging around from dawn till dusk without the chance to draw breath. So, note to self. Manage diary a bit better but, as there’s that chance to meet contacts, existing and new, for the first time in quite a while, the diet is being suspended, the Oyster Card is set to get a hammering and, who knows, I might even be forced to get the odd taxi. Indeed, all very pre-Covid so, if the email looks a little shorter than usual on occasion, it’s because I’ve been out and about, collecting facts, anecdotes and fiction for use on that fabled day, ‘tomorrow’. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Full stories are in the Premium Email. Reply to this email if you would like to upgrade. See Twitter for in-day comment. Let us know if you would like an example of the Premium Email or to comment on the new format. Prices for the Premium, unchanged for 2yrs, are £295 for one subscription, £495 for multiple, both plus VAT. Reply to this email to order & request invoice. Or sign up for easy in, easy out monthly option HERE PUBS & RESTAURANTS: Accrued costs: A joint letter from UK Hospitality and the BRC warns ministers that enforcing the payment of rent accrued during the pandemic will put business ‘at risk of insolvency or takeover’. • See premium. Reply to this email to upgrade. Trade bodies step up lobbying ahead of the Chancellor’s Budget (on 27 October). UK Hospitality has called on the Government ‘for a package of targeted support in its Budget submission to the Treasury.’ It says it is ‘proposing a programme of co-investment to create jobs and boost growth.’ • See premium. Reply to this email to upgrade. Labour issues. As reported yesterday, CGA has said that one in six hospitality jobs are currently unfilled. Its confidence survey (conducted with Fourth) suggests that 76% of respondents were upping pay to attract and retain staff. Christmas. Yes, Christmas. Foodservice analyst Peter Backman comments that Christmas this year could present mixed fortunes for operators with uncertainty as to both demand and supply likely to cause problems. • See premium. Reply to this email to upgrade. HGEM reports that ‘less than a quarter (21%) of consumers report that their workplace is planning a Xmas party this year (however, it is a 17% increase from 2020).’ It says ‘shockingly, more customers are saying they’re not having work Christmas parties than there were last year (24% vs. 20% in 2020), whilst the majority (55%) are yet unsure whether their workplaces are organising anything this year.’ • See premium. Reply to this email to upgrade. Supply issues: The prime minister has told business leaders that it is not the government’s job to fix food supply shortages in the run up to Christmas. Passing the buck. When asked if more emergency visas will be issued to step up supplies, he said it is up to industry leaders to work out the way ahead. The Times reports ‘only 27 fuel tanker drivers from the EU have applied to work in Britain under the government’s emergency scheme to tackle the petrol crisis, ministers have been told. It means only a fraction of the 300 visas available for HGV drivers in the fuel industry are set to be taken up in a setback to efforts to replenish supplies.’ More on petrol & culled pigs: • See premium. Reply to this email to upgrade. Disaster capitalism? Tory MP Chris Loder has said that food shortages were in the “long-term interest” of the British economy. He told a Tory Party conference fringe event that it ‘is in our mid and long-term interest that these logistics chains do break.’ He said that it ‘will mean the farmer down the street will be able to sell their milk in the village shop like they did decades ago. It is because these commercial predators – the supermarkets – have wiped that out and I’d like to see that come back.’ • See premium. Reply to this email to upgrade. Current issues. Foodservice analyst Peter Backman recently visited Bluewater & found foodservice companies struggling for product & shutting early. He says ‘over 30 shops were boarded up’ suggesting that there are ‘massive changes to shopping habits are being disrupted by online shopping with a consequent huge impact on retailer sustainability.’ This will impact footfall and demand for F&B. • See premium. Reply to this email to upgrade. COMPANY & OTHER NEWS: Gregg’s – trading ahead of expectations, plans to double revenues in the next five years. Gregg’s has updated on trading for its Q3, saying that it is seeing a ‘continuing recovery and increasing potential for growth.’ The company says that Q3 LfL sales were up by 3.5% against 2019. It says delivery sales are ‘developing well’ and it has 943 of its c2,100 now involved. The group opened 68 net new shops opened year-to-date (84 openings less 16 closures) and its says it continues to expect around 100 net shop openings in 2021. The group says earnings should be ‘ahead of our previous expectations.’ • See premium. Reply to this email to upgrade. Hotel Chocolat has this morning reported full year numbers. The group says it has increased revenue by 21% to £164.5m with underlying EBITDA of £28.6m against £21.6m last year. PBT (before exceptional items) is £10.1m against £2.4m. Re current trading, the company says ‘following a year of strong digital growth more than offsetting significant retail disruption, sales growth accelerated further from April with the UK re-opening of all channels, indicating the effectiveness of the multi-channel sales model.’ The first 13wks trade has been in line with management expectations. • See premium. Reply to this email to upgrade. Compass Group yesterday announced that director Karen Witts ‘has mutually agreed with the Board that she will step down as Chief Financial Officer and as a Director of the Company with effect from 31 October 2021.’ It said ‘Palmer Brown has been appointed Chief Financial Officer Designate and a Director of the Company with immediate effect. He will assume the role of Chief Financial Officer with effect on and from 1 November 2021 and will also join the Corporate Responsibility Committee.’ Chairman Ian Meakins said ‘we would like to thank Karen for her valuable contribution, particularly over the last 18 months which has been a time of exceptional challenge for Compass. She will leave the Group in strong financial health.’ The Telegraph reports that Caffe Nero has hired ‘advisers for debt talks as Issa brothers circle.’ It says ‘Lazard is understood to be assisting the chain with discussions on refinancing its £150m debt pile.’ The paper reports that the Issa brothers own £180m of Caffe Nero’s ‘lower ranking debts’. It says this means the brothers ‘could seize control if the company defaults on its debts.’ EG Group, the Issa brothers’ vehicle, announced yesterday that it had acquired Cooplands, the Scarborough based baker chain, the UK’s second largest, for an undisclosed sum. The business recently bought Leon and Asda. • See premium. Reply to this email to upgrade. The Times reports that the family-owned manufacturer of Ginsters pasties and Soreen malt loaf tumbled into the red to the tune of more than £30 million on the back of “an incredibly challenging year”. • See premium. Reply to this email to upgrade. The Ivy has reportedly requested permission to open a new restaurant in Chichester. MEATliquor is set to open a new restaurant in Clapham, adding to its 11 London outlets. The new venue will contain two split-level bars, a 170-cover dining area and outdoor garden space. The space will also host live music on weekends. BrewDog Retail reports a pre-tax loss of £10.4m in its full year results for 2020, with turnover at £25.2m. The bars division of the Scottish craft beer company said it is optimistic for a better 2021. Five Guys reports revenues down by 11% during the 2020 full year to £233m, with an operating loss of £14.2m. The company said it continues to see strong growth prospects in the premium burger market, and will carry on rolling out in the UK and Europe. Zapaygo has partnered with the Night Time Industries Association (NTIA) to become its mobile ordering partner. A recent survey commissioned by Zapaygo, found that 63% of hospitality businesses said they saw their mobile order and pay system as strategically important to the growth of their business. The Morning Advertiser reports that small brewers are facing challenges after the Covid-19 pandemic as they attempt to get back to normal trading. The latest impacts of both the petrol crisis and CO2 fears have seen brewers and pub operators hit by a supply chain crisis. Perfect Day, a animal-free dairy company, has raised $350 million in a Series D funding round led by Temasek and Canada Pension Plan Investment Board (CPP Investments). Perfect Day is a food tech start-up that developed a method for producing functional protein through the fermentation of microflora. Austria reports its wine exports increased by 25% in H1 of 2021, with values rising to over €111 million, with growth driven by the relaxation of Covid-19 restrictions. HOTELS & LEISURE TRAVEL NEWS: Onex Corporation, owner of Parkdean Resorts, is preparing to put it up for sale as the UK staycations market continues to boom. • See premium. Reply to this email to upgrade. Air Newzealand is imposing a ‘no jab, no fly’ policy as it prepares for a return of international travel. Passengers will be required to be fully vaccinated when it restarts operations from 1 February, 2022. The CAA has granted 871 Atol licences by the September 30 renewal date, more than 300 fewer than in October 2019. It urged businesses due to renew Atols next March to apply in good time before the March 31 2022 deadline. In the US, Destination Analyst says that Americans are feeling more financially stressed lately and some are not entirely confident in the protection their COVID vaccines are currently giving them. Over 30% of all American travelers say the announcement that international visitors will be able to visit the US again makes them more interested in traveling in the next six months. OTHER LEISURE: Facebook, Instagram and WhatsApp were down for several hours yesterday. Facebook. A whistle blower has leaked documents alleging that the company knew its products were fuelling hate when it turned off safeguards designed to combat misinformation in the wake of Joe Biden’s defeat of Donald Trump in last year’s US elections. FINANCE & MARKETS: Chancellor Rishi Sunak has defended the first of his tax rises and stressed the ‘need to fix public finances’ at the Tory Party conference. He says ‘I know tax rises are unpopular.’ • See premium. Reply to this email to upgrade. Sterling up at $1.359 and €1.1719. Oil price higher at $81.45. UK 10yr gilt yield down 1bp at 1.01%. World markets mixed to down yesterday with London set to open up around 21pts as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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