Langton Capital – 2022-03-17 – ROO, more on RTN, CINE, Soho House, footfall, VAT & other:
ROO, more on RTN, CINE, Soho House, footfall, VAT & other:A DAY IN THE LIFE: I’m no ornithologist, but I was wondering the other day just where all the starlings have gone. You know, those speckly little blighters? The ones that are too hench to hop. They jump or strut and bully other birds but now, it seems, they’re gone. At least many of them are. Leaving the bird table to various smaller birds that they would normally have wiped the floor with. Anyway, overtaken by events here so, with a couple of companies reporting, let’s move on to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many 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 DELIVEROO – FULL YEAR NUMBERS: Deliveroo has reported full year numbers for calendar 2021 and comments thereon are set out below: Headline numbers: • The company says it has generated ‘strong growth’ and adds that it is on a ‘path to break even and long term profitability.’ In the short term, both revenues and losses have increased. • Revenues were up 57% at £1.824bn. The company is reporting a loss before tax of £298m, up from a loss of £213m in the prior year. • See premium. Reply to this email to upgrade. RESTAURANT GROUP – FULL YEAR ANALYSTS’ MEETING: Following the release of its full year numbers, the Restaurant Group hosted a meeting for analysts and comments thereon are set out below: Trading: • Wagamama has performed very well and the pubs have consistently out-performed. Leisure is ahead of its peer group. Concessions remain depressed but are likewise outperforming their peers. Around 60% of concession units are open (27 out of 40). The rest should reopen over the summer. • Volume vs price. RTN would not comment on itself specifically. For the industry as a whole, it suggests that, if you strip out three years of inflation and the delivery boost, covers may be down 15-20%. • See premium. Reply to this email to upgrade. PUBS & RESTAURANTS: Food & drink prices: The latest edition CGA Prestige Foodservice Price Index shows a sharp acceleration in food price rises in January. It says there are ‘more price rises to come’. The index suggests that year-on-year inflation of food and drink prices was running at +7.9% in January, up from less than half that level in December. • See premium. Reply to this email to upgrade. The MA quotes ONS stats as showing that the average cost of a pint in the UK has increased by 23p in the past two years. It says that ‘in January 2020 the cost of a pint was £3.73 and as of January 2022, it had risen by 6.2% to £3.96.’ These numbers, to anyone buying a drink from time to time in London, seem a tad on the low side. • See premium. Reply to this email to upgrade. The RAC points out that, despite the fall in the headline price of oil, diesel and petrol prices have hit new records at around £1.76 and £1.65 per litre respectively. VAT – campaign to keep it at 12.5%: UK Hospitality reports that the All Party Parliamentary Group for Hospitality and Tourism has ‘concluded that VAT should not return to 20% this April, citing UK Hospitality data revealing that the lower rate would bring benefits including jobs, international competitiveness and social wellbeing.’ • See premium. Reply to this email to upgrade. Shifts in brewing patterns: SIBA reports that there has been a ‘seismic shift in the UK Brewing industry over the last two years, with traditional cask beer under serious threat as consumers order more online and drink more at home.’ It says ‘whilst overall beer sales across the whole market in 2021 were down 14.2% on 2019 pre-pandemic figures, the picture was much worse for small independent breweries, who saw production levels drop by an average of 40% in 2020 and 16% in 2021 when compared to 2019.’ Footfall: The Local Data Company has reported that the number of independent retail businesses on the UK’s high streets rose for the first time in five years last year. It says that the number of chain stores continued to decline, some 2,157 new independent outlets opened during the year reports the FT. Labour issues: The latest UKH and CGA Future Shock Report suggests that around 79% of operators have increased pay rates for staff to improve recruitment and retention. Cost of living crisis: The BCC is urging the Chancellor to move to protect consumers from the worst of the cost of living crisis when he presents his budget next month. It says its ‘latest economic forecast projects that the war in Ukraine has increased the risk of a recession in the UK by exacerbating the already acute inflationary squeeze on consumers and businesses and derailing the supply of commodities to key sectors of the economy.’ • See premium. Reply to this email to upgrade. COMPANY NEWS: Young’s has announced that CEO Patrick Dardis will be stepping down from his position at this year’s AGM on 5th July 2022. The company says ‘on that date, he will be succeeded by Simon Dodd, Chief Operating Officer, who was recruited three years ago with succession planning in mind.’ YNGA adds ‘Patrick will remain on the Board and will stay on to oversee the transition to Simon, until he retires at the end of September. He will remain available to the Company for the remainder of his notice period through to the end of March 2023.’ • See premium. Reply to this email to upgrade. Red Oak Taverns has announced that it has ‘completed a recapitalisation of its business, providing significant additional capital to enable it to continue its ambitious acquisition programme.’ Starbucks has announced that CEO Kevin Johnson is to retire after 13yrs with the company, five as CEO. Founder Howard Schultz will return to the company as interim CEO. This will be his third stint as CEO. Soho House is reported set to speed up its club openings worldwide. The club owner says it has encountered “challenging conditions”, and it fell short of sales expectations on Wall Street. Revenue for the final quarter of last year rose by 158 per cent to $184.5 million in the three months. This was a little lower than estimates of around $187.9 million. HOLIDAYS & LEISURE TRAVEL: Accor has updated on 2021 saying that, in the year, it opened 288 hotels and resorts and 41,000 rooms. OTHER LEISURE: Cineworld has reported full year numbers for the period ended 31 December 2021 saying that it has ‘delivered a resilient performance in a very challenging market, strengthening its liquidity position and continuing to demonstrate tight control over its operating costs and cash usage. The Group is in a good position to benefit from the expected industry recovery.’ The numbers, which are backward-looking, are compared with 2020, which was an even worse year. • See premium. Reply to this email to upgrade. Gym Group yesterday said that it would raise membership fees this year as its costs have risen. FINANCE & MARKETS: The US Fed yesterday announced that it was raising interest rates for the first time since 2018. The Fed will put rates up by 0.25% and says this could be the first of a series of rises. In the UK, the Bank of England meets tomorrow. It is also widely expected to raise rates. A rise would be the third in recent months. Sterling higher at $1.3154 and €1.193. Oil down around $3 at $99.74. UK 10yr gilt yield up 7bps at 1.64%. World markets better yesterday. London set to open 9pts higher as at 7am. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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