Langton Capital – 2022-04-28 – Whitbread FY, PPHE update, Carlsberg, discounting, Vianet, labour etc.:
Whitbread FY, PPHE update, Carlsberg, discounting, Vianet, labour etc.:A DAY IN THE LIFE: So, is ‘rewilding your garden’ really a thing or is it just cover for a CBA mindset whereby you can’t be bothered to cut the grass? • See premium. Reply to this email to upgrade. Asking for a friend, of course but, with a long weekend just around the corner, I must get some more beer in. On to the news: LANGTON EMAIL: The Free Email is now written in short form. 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 WHITBREAD – FULL YEAR NUMBERS: Whitbread has released its full year numbers and our comments thereon are set out below. Headline numbers: • Whitbread reports that it has seen ‘continued significant market outperformance in the UK, driven by the strength of our commercial and operational initiatives along with the inherent strengths of our brand, scale and direct distribution.’ • The company says that revenue was £1.70bn for the year under review compared with £589m for FY21 and £2.07bn for FY20 • See premium. Reply to this email to upgrade. PUBS & RESTAURANTS: The Campaign for Real Ale (CAMRA) and UKHospitality call for the government to make this year’s extra bank holiday a permanent fixture. • See premium. Reply to this email to upgrade. With the Chancellor making clear to ministers that there was no money available to fund schemes to help hard-pressed households, the government is considering alternative measures, such as a plan to lower MOT test intervals from one to two years. Lumina Intelligence reports that Greggs, Costa, and Gail’s are expected to lead the growth in the value of the coffee, sandwich and bakery market segment in 2022. Thinktank UK in a Changing Europe (UKICE) reports that Brexit has pushed up the price of food imported from the EU. Kellogg’s has launched a legal challenge against new government rules that would stop some of its cereals being prominently displayed in shops. In October, new regulations come into effect restricting the promotion of food and drink with high fat, salt and sugar content. Rising costs: Inflation feels pervasive and it may have become embedded as a result of fuel and energy price rises. • See premium. Reply to this email to upgrade. Discounting: M&B’s Sizzling Pub Co is offering 2-4-1 burgers on key evenings over the next three weeks. Labour issues: The BCC comments on staffing issues across the wider economy when it says that 78% of firms are currently facing difficulties in finding staff. • See premium. Reply to this email to upgrade. The wine market: KAM Media says that ‘customers are crying out for support when buying wine’ adding that ‘1-in-3 customers don’t feel confident ordering wine in pubs, bars and restaurants, with 1-in-9 admitting that they often find the experience intimidating.’ • See premium. Reply to this email to upgrade. Retail sales: Sales slipped markedly in April reports the CBI via its Distributive Trades Survey. It says the balance of members expecting sales to rise over fall was minus 35 in April versus a positive 9 seen in March. COMPANY NEWS: Carlsberg has updated on trading saying that it sees total organic volume growth of 9.1% this year in Q1 with reported growth of 8.6%. Vianet has updated on full year numbers. SushiDog will open a new site in Soho next month, adding to its current estate of 2. The company also plans a further site in the summer in the City on Bishopsgate. Made of Dough is opening Palazzo, an Italian Bar & Diner, in Crystal Palace next month. The site will have a late-night licence on weekends and will feature a line-up of DJ nights. The 2,000 sq ft site will have 80 covers across the ground floor with an alfresco terrace set to open in July. Amber Taverns. Propel reports that Amber Taverns has appointed Sapient Corporate Finance to advise MxP Partners, which has owned the business since 2014, on its options, which could include a sale of the business. It reports that Amber Taverns and Sapient declined to comment. AB InBev is facing the threat of strike action at its Samlesbury site, near Preston. The staff have rejected a 2% pay rise. The GMB union says ‘this industrial action is a result of Budweiser Brewing Group’s management making a frankly insulting pay offer.’ Chipotle in the Us has reported that it passed the 3,000 locations milestone during Q1 2022. It says it will open between 235 and 250 new restaurants in 2022 as a whole. The group says it is about halfway to its goal of reaching 7,000 restaurants in North America. HOLIDAYS & LEISURE TRAVEL: Royal Mail and DHL have been brought in by the government to help clear the passport backlog. • See premium. Reply to this email to upgrade. Meanwhile, Travel Counsellors reports current sales up 30% on pre-pandemic levels, citing its technology as ‘key’ to its success. The homeworking agency is investing a record amount of £7 million in its technology platform over the course of a year. PPHE has updated on Q1 trading saying it has made a ‘strong start to FY22, underpinned by encouraging growth in leisure demand.’ Glenigan’s construction industry intelligence reports that the hotel construction sector is preparing for a bumper period of activity with £2.5 billion-worth of projects in the development pipeline. The study covering the two years to March 2022 found 352 approved hotel construction projects across the United Kingdom. Sky reports that Epiris, which used to own Parkdean until 2017, is ‘among a handful of remaining bidders for Butlin’s.’ Grant Shapps has been sabre rattling. He says P&O Ferries should return £11 million of furlough payments. He has also said that P$O CEO Peter Hebblethwaite ‘has got to go.’ BA is reportedly cutting services in avoid potential cancellations due to staff shortages. Grant Shapps blew the gaff to the transport select committee. Wyndham Hotels & Resorts has said that 2022 could be the company’s best year since it was founded in 1981. P Re-booking hotels. A study by BVA BDRC has suggested that booking, cancelling and then rebooking hotel rooms at cheaper rates is a feature of the industry. It says such customers were hard to identify, but were often members of loyalty programmes, who tended to travel frequently and be ‘perhaps a bit more savvy, indeed ahead of the curve, than other groups.’ OTHER LEISURE: Facebook parent Meta yesterday reported Q1 numbers revealing its weakest revenue growth for a decade. Spotify yesterday reported Q1 numbers saying that it added 2m subscribers in the quarter against estimates of 2.57m. Tesla had more than $125bn (£99.3bn) wiped off its market value on Tuesday amid concerns that boss Elon Musk may have to sell shares in the electric car maker to help pay for the takeover of Twitter. Moody’s has pointed out that Elon Musk’s bid for Twitter could raise leverage materially. It says this would ‘weaken Twitter’s credit metrics’. FINANCE & MARKETS: The SMMT reports that car production in the UK was down by 100,000 units in Q1 this year against the same period in 2021. Customs duty receipts in the UK rose by 62% in 2021 to £5bn as customs duties were introduced on goods from the EU reports UHY Hacker Young. This is income for the Treasury but represents a material friction on trade. The accountant says the duty is inflationary. Sterling mixed at $1.2523 and €1.1895. Oil price down at $103.71. UK 10yr gilt yield up 3bps at 1.82%. World markets better yesterday and London set to open up around 19pts as at 6.45am. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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