Langton Capital – 2022-04-26 – Loungers, Coca Cola, JDW, Nightcap, costs, delivery, luxury goods etc.:
Loungers, Coca Cola, JDW, Nightcap, costs, delivery, luxury goods etc.:A DAY IN THE LIFE: Bit behind this morning due to the interminable admin that’s been plaguing us for a while now. But got the accounts lodged with the FCA yesterday. Now just the VAT and then the normal month-end stuff. 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 LOUNGERS FULL YEAR TRADING UPDATE: Loungers has this morning updated on trading for its full year and our comments thereon are set out below: Headline numbers: • Record numbers and profit upgrade. The group ‘announces record sales for the 52 weeks ended 17 April 2022’ saying that ‘our significant outperformance of the market has been maintained over the financial year.’ It adds ‘whilst trading during December was subdued as a result of the Omicron variant, it recovered strongly post-Christmas, allowing us to deliver record total revenue for the financial year of £237.3m.’ • See premium. Reply to this email to upgrade. PUBS & RESTAURANTS: Costs: The Caterer reports that the current shortage of cooking oils could see hospitality operators incur further cost increases ‘on food bills right across the menu’. • See premium. Reply to this email to upgrade. Labour costs: Indeed Hiring Lab reports that hospitality has been one of few sectors to have seen pay increases in keeping with inflation. Consumer behaviour: The ONS reports that more people are borrowing more and saving less in order to maintain their standard of living. It says 17% of consumers say they are borrowing more than they did a year ago and some 43% say they will not be able to save money in the next 12 months. • See premium. Reply to this email to upgrade. Delivery: Delivery: CGA & Slerp Hospitality at Home have produced their latest Tracker covering delivery and takeaway sales showing that ‘Britain’s managed restaurant and pub groups’ delivery and takeaway sales remain more than double pre-COVID-19 levels—but trading has dipped year-on-year after consumers resumed their out-of-home eating habits.’ • See premium. Reply to this email to upgrade. Luxury goods: Most comment regarding the Shanghai shutdown has been on the threat to the delivery of product from the Far East. However, the issue is also said to be impacting China’s imports, particularly of luxury goods. Travel hubs: Foodservice analyst Peter Backman comments on the impact on hospitality operators of increased travel. • See premium. Reply to this email to upgrade. Some sharp moves in the sector yesterday. Cineworld off 6%, Revolution Bars off 5%, City Pubs, Hostelworld, Nightcap & Various Eateries off 4%, COMPANY NEWS: JD Wetherspoon has said that trading remains mixed. • See premium. Reply to this email to upgrade. Burger King plans to open another 200 restaurants in the UK over the next five years. The company reported a 68% increase in revenues to £211.7m, with like-for-like sales up by 46% during 2021. The Times reports ‘Burger King UK kept itself in the shop window for a possible £600 million flotation as it reported strong full-year results and ambitious growth plans.’ It says it is ‘understood to remain keen to pursue an initial public offering, having appointed Bank of America, Investec and Peel Hunt, although it has yet to nail down a time frame.’ In the US, the Burger King parent is reported to be offering a free order of fries every week to members of its Royal Perks loyalty program between now and the end of the year. Coca-Cola Co yesterday reported Q1 numbers saying that sales rose sharply by 18% to $10.5 billion, ahead of Wall Street expectations of $9.8 billion. Profits was $2.8 billion, or 64 cents a share, up 24% on a year ago. Prices had been raised by 7% globally and by 11% in North America. The group’s shares rose slightly on the news. The FT reports that Just Eat Takeaway.com is set to face recalcitrant shareholders at next week’s annual meeting. One top shareholder alleges that the company misled shareholders on its financial firepower ahead of two crucial votes to approve last year’s $7.3bn Grubhub deal. Chapel Down reports profits of £1.93m in 2021, driven by a ‘thriving’ English wine market. CEO Andrew Carter said ‘Our Wine and Spirits business enjoyed record revenues and sold over 1.5m bottles – our largest number ever.’ Carter noted that the brand’s long term goal is to double the size of the business in the next five years. Nightcap has updated on the deferred consideration payable for its acquisition of the Adventure Bar Group, saying that, ‘on the basis of its trading since its acquisition, the Adventure Bar Group has achieved the milestones required for the payment of the all equity earn out component of the consideration for this acquisition significantly earlier than originally anticipated.’ Big Smoke Brew Co, and Airport Retail Enterprises are teaming up to launch an independent craft beer and food destination to travellers departing from London Luton Airport. Big Smoke says ‘following on from the success of their first venture at Heathrow’s Terminal 2, the doors to a second Big Smoke Taphouse & Kitchen will be opening in June 2022.’ HOLIDAYS & LEISURE TRAVEL: Norwegian Cruise Line CEO, Harry Sommer, expects the firm to have a record year for growth in the UK market as demand soars for 2022 and next year. According to Sommer, the UK market has outperformed all other markets in recent months. P&O Ferries plans to resume passenger sailings operating between Dover and Calais in the next few days, with tickets for a Wednesday crossing going on sale. OTHER LEISURE: PRS for Music reports that royalties from live performances of music fell almost 30% in 2021, despite concerts resuming in the summer. Concert revenues were just £8m, down from £11.3m in 2020 and £54m in 2019, however, CEO Andrea Martin said ‘we will see a bounce back this year.’ Martin said revenues are not expected to reach pre-pandemic levels until 2023. Twitter’s shares rose by 4% at market open yesterday on the back of speculation that the firm could agree a takeover deal with Elon Musk as early as Monday. As the day progressed, the story emerged that the company had reached an agreement in principle for Elon Musk to buy the social media platform in a $44bn deal. Mr Musk has said that Twitter needs to be taken private to become a genuine platform for free speech. FINANCE & MARKETS: The Centre for Economic Performance at the London School of Economics and Political Science has reported that UK imports fell by 25% relative to those from the rest of the world during 2021. Sterling mixed at $1.276 and €1.1893. Oil lower at $103.40. UK 10yr gilt yield sharply lower at 1.84% (off 12bps). World markets heading better towards the end of the day yesterday. London set to open 76pts higher as at 6.45am. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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