Langton Capital – 2022-06030 – Whitbread, Carnival, Heathrow, costs, labour, Sheps, Heavitree & other:
Whitbread, Carnival, Heathrow, costs, labour, Sheps, Heavitree & other:A DAY IN THE LIFE: Decent postbag following the beer vs coffee, which deserves a higher price, comments that we made earlier in the week. In terms of the size of the response, Coffee Aficionados took an early lead. Perhaps they couldn’t sleep or, to look at that particular telescope from the other end, maybe Beer Fans were nursing hangovers and weren’t out of bed until later in the morning when, bleary eyed and soon-to-be-outraged, they read that day’s email. At which point, beer came back strongly and the two drinks ended the day neck and neck. So maybe it’s horses for courses. And, whilst firmly in the beer camp, I’m prepared to concede that it’s not a drink for 7am but nor, on that basis, is it wise to drink four or five pints of coffee just before you go to bed. It’s the end of the quarter today and the year, can you believe it, is half way over. We’re nearer, whisper it, to next Christmas than we are to last. 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. Prices for the Premium at time of writing are £345 for one subscription, £595 for multiple, both plus VAT. Or sign up for easy in, easy out monthly option HERE PUBS & RESTAURANTS: Costs & Prices: Lynx Purchasing is urging hospitality and catering businesses to maximise the savings that can be achieved with a disciplined approach to ordering, as they face continued sharp rises in costs… • See premium. Reply to this email to upgrade. Shop prices with a focus on food. The BRC reports that average prices among its members in early June were 3.1% higher YoY… The BBC reports that ‘farmers struggling with soaring costs are being forced to cut back on their food production… The government’s plan to advertise, at taxpayers’ expense, schemes whereby businesses could cut prices in order to help customers is attracting criticism. See Langton comments earlier in the week… Consumer behaviour. Asda has said that basket sizes are shrinking and now the CEO of Sainsbury’s, Simon Roberts, claims that shoppers are turning to cheaper frozen food as disposable incomes shrink. The Joseph Rowntree Foundation (JRF) claims that about 7 million struggling families in the UK are living through a ‘frightening year of financial fear’, going without food, heating, toiletries and even showering as they try to cope with the cost of living crisis. Morrison’s has commented on trading saying that it is operating in a ‘very fragile and difficult consumer environment’… Kraft Heinz has stopped supplying Tesco in a row over money, reports Sky News… US dark kitchen company Butler Hospitality is reported to have ceased operations… Labour issues: The Open University’s annual Business Barometer report has concluded that some 78% of firms are seeing trading held back by intensifying skills shortages… Popmenu in the US reports that 51% of restaurant operators questioned believed that they could not meet demand, often because of staff shortages… Other news: UK Hospitality has welcomed the Government’s call for evidence on the short-term letting market in England… Lisa Nandy, Labour’s shadow levelling-up secretary, claims that reopening nightclubs could help turn around struggling towns, saying nightclubs and music venues played an important role in the culture. COMPANY NEWS: Shepherd Neame yesterday updated on trading… Heavitree Brewery H1 numbers. Heavitree is not a large company. But it comments on trends impacting the whole industry and its caution re the autumn and winter is perhaps noteworthy… Nightcap has announced the issue of 7,142,856 new ordinary shares in respect of the deferred consideration payable for its acquisition of the Adventure Bar Group… Freedom Brewery has exceeded its crowdfunding target by 20%. Chipotle is to open a new unit in Watford this week. Tortilla has signed up with Uber Eats. HOLIDAYS & LEISURE TRAVEL: Whitbread has appointed Dominic Paul as its next CEO, taking over from Alison Brittain in early January 2023… Carnival Corporation yesterday reported Q2 numbers saying that it lost $1.3bn in the first 6mths of this year against a loss of $1.4m in the same period last year. Shares fell by 16% overnight on the back of the numbers and analyst downgrades… Heathrow is cancelling some 30 flights today. British Airways check in staff at Heathrow could announce their intention to strike sometime this week. Fintech Currensea has raised £6.5m following its latest crowdfunding round. OTHER LEISURE: The government is set to announce further restrictions on the gambling industry as part of the review of the 2005 Gambling Act… Camelot has lost its appeal to stop the National Lottery licence being handed to rival company Allwyn. Allwyn will operate the lottery from February 2024. FINANCE & MARKETS: The DG of the BCC, Shevaun Haviland, has urged the Government to take action to save the economy as the cost of doing business crisis continues to worsen… The Telegraph comments on what it says could be a housing market ‘disaster’. The ONS has updated on Q1 GDP with no change to earlier estimates and growth at 0.8%. Re interest rates, the Bank of England says it is leaving “all options on the table” including a more aggressive series of rate rises… Lloyds Bank has reported that business confidence has fallen to a 15-month low on the back of rising inflation and the cost-of-living squeeze… The US has reported that its economy shrank at an annualised 1.6% in Q1. Nationwide has reported that house prices across the UK rose by 10.7% in the year to June… Sterling weaker again at $1.2128 and €1.1598. Oil lower at $115.89. UK10yr gilt yield down 10bps at 2.37%. World markets mixed but London set to open down some 65pts as at 6.30am. FORTHCOMING NEWS: Quiet week. XPF AGM Wednesday, Comptoir & Playtech AGMs on Thursday and Constellation Brands Q1 on the same day. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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