Langton Capital – 2022-02-22 – Coca Cola HBC, Intercontinental Hotels, restrictions lifted, footfall etc.:
Coca Cola HBC, Intercontinental Hotels, restrictions lifted, footfall etc.:A DAY IN THE LIFE: It brings it home to you that you’re perhaps not as young as you were when someone says ‘oh, it’s been open for donkey’s years’ or ‘it’s been there forever, like, since Adam was a lad’ or some such, and they mean a coffee shop or a bar or whatever has operating since 2013 or 2014. And that is, maybe, quite a long time but, when you can remember Broadgate getting built and can now see it getting demolished, it doesn’t seem like very long at all. Anyway, our marathon long-weekend in London continued yesterday with trips to the British Museum, Camden Market and the Van Gough experience opposite Spitalfields. This followed by several visits to pubs (for analytical purposes) and a meal. Cost? Yes. I dare not look. This tapping your card and walking away lark is fatal. Today, Oxford Street, pubs, meal and a show, Woman in Black. It’s all the 2s today – 22-2-22. 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: Dropping restrictions: All Covid restrictions in England are to end on Thursday, the government has said. PM Boris Johnson says that free mass testing will end from 1 April. Mr Johnson has faced some opposition from health care professionals. The BMA, for example, says that the plan fails to protect those most at risk from Covid. The move has been broadly welcomed by industry bodies and by many operators. • See premium. Reply to this email to upgrade. Mayor of London Sadiq Khan has announced that motorists will be able to drive into central London after 6pm from Monday without incurring a congestion charge. Footfall: Springboard reports that last week ‘footfall across UK retail destinations last week was heavily impacted by the severe storms, which negated the positive impact of the start of the February school half term break.’ It says ‘Storm Eunice landed on Friday and led to significant declines in footfall on both Friday and Saturday. Prior to that Storm Dudley had hit UK shores on Wednesday, but in overall terms this had a more minor impact on footfall.’ • See premium. Reply to this email to upgrade. Canary Wharf Group is launching a flexible office service called MadeFor, and could grow to as much as 20 per cent of the group’s portfolio over the next few years. Its first tenant, Wall Street bank Citigroup, is taking 95,000 square feet of space at 40 Bank Street in Canary Wharf. Hospitality industry economic activity: Markit says its Flash PMIs for February ‘indicated a swift rebound in UK economic conditions after disruptions due to the Omicron variant at the turn of the year. Private sector output expanded at the fastest pace for eight months, led by a strong recovery in consumer spending on travel, leisure and entertainment.’ This is perhaps understandable. March numbers may give some indication as to whether momentum can be maintained or if it was simply a one-off return to previous levels. The IWSR reports that Vodka and Tequila bases accounted for more than 50% of new spirit-based RTD launches between 2019 and the first half of 2021. S4labour is supporting Only A Pavement Away’s new training Cafés, providing their software for people management needs. The sites will allow those helped by Only A Pavement Away receive training, qualifications and experience to help individuals rebuild their lives through the hospitality industry. COMPANY & OTHER NEWS: Coca-Cola HBC has reported full year numbers saying that FX neutral growth was +20.6% like-for-like with reported revenues up 16.9%. The company says it ‘gained momentum in Q4, with FX-neutral revenue closing 10% above 20192 levels for the year like-for-like.’ Volumes for the year were up 13%. The company made a net profit of €547m compared with €415m in the prior year. EPS is 158.4c vs 118.5c last year. CEO Zoran Bogdanovic says ‘the business has delivered a very strong recovery in 2021, with all key metrics above pre-pandemic levels, the result of consistent and disciplined focus on our strategic priorities over the last few years.’ • See premium. Reply to this email to upgrade. The MCA reports that KFC UK & Ireland’s opening target of 50 new restaurants this year, and another 300 over the next five years is backed by ‘huge demand’ from for dine-in restaurants from both existing and new customers. Pizza Pilgrims is converting its Finsbury Park Slice restaurant into a standard Pizza Pilgrims. The transformation will take about six weeks, according to the company. Spirit producer Beam Suntory reports global sales up 11% in 2021 with the company saying ‘ There was also “robust demand” for premium brands in the US, which saw high-single digit growth, although Japan was impacted by extended on-premise restrictions, limiting its growth to the mid single digits although there was strong demand for convenient ready-to-drink beverages’. LEISURE TRAVEL & HOTELS: Intercontinental Hotels has reported full year results to end-December saying that revenue for the year rose by 21% to $2.907bn with an operating profit of $494m (vs loss of $153m) and an adjusted EPS of 145.4c vs a loss per share of 142.9c last year. The group reports that it saw a ‘significant improvement in trading during the year, with RevPAR recovering to 70% of 2019 levels.’ It adds that it saw a ‘particularly strong recovery in the US, resulting in Americas FY RevPAR (20)% vs 2019, with Greater China (29)% and EMEAA (52)%; in Q4, Americas improved to (7)% vs 2019, with Greater China (33)% and EMEAA (33)%.’ Global REVPAR was down 17% vs 2019 with occupancy 11pts lower and room rates in line with 2019. CEO Keith Barr says ‘trading improved significantly in 2021, with RevPAR getting closer to pre-pandemic levels as the year went on, profitability and cash flow rebounding strongly, and signings accelerating in Q4.’ Despite the removal of most Covid regulations from Thursday, Covid passports will remain for international travel as some other countries may continue to require them. The biggest obstacle to the global recovery of travel and tourism is the uneven distribution of Covid-19 vaccines and rates of vaccination around the world, according to Jamaica tourism minister Edmund Bartlett. Bartlett said ‘10% of the world had 80% of the vaccines’. OTHER LEISURE: Playtech has announced that TTB may make an offer for the company at a higher value than the recommended cash acquisition by Aristocrat Leisure Limited of 680p per share. Mor Weizer, CEO of Playtech, has made it known that he wishes to explore participating in the investor group formed and advised by TTB in considering a possible offer for the company. Truth Social, the social media platform created around Donald Trump after his expulsion from Twitter, Facebook and YouTube last year, has launched. Mr Trump says ‘get ready. Your favourite president will see you soon.’ FINANCE & MARKETS: Markit reported flash PMIs for the UK yesterday saying that the indicators have improved and that activity levels have risen. This may have some implications for the timing and size of the next interest rate rise. Markit says the service sector registered 60.8, well ahead of estimates. Manufacturing activity registered 56.7. Markit says ‘input cost inflation accelerated again in February, however, and came close to breaching the survey-record high seen last November.’ It says ‘faster rises in operating expenses at service sector firms once again offset a slowdown in cost inflation at manufacturing companies.’ Sterling mixed at $1.3597 and €1.2023. Oil price sharply higher on Ukraine fears at $97.46. UK 10yr gilt yield up 2bps at 1.40%. Markets down yesterday. London pre-opening indication swinging around a bit but was for minus 60 points as at 7am. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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