Langton Capital – 2022-09-30 – DP Eurasia, Cineworld, Carlsberg, M&B, mini-Budget, trading, labour etc.:
DP Eurasia, Cineworld, Carlsberg, M&B, mini-Budget, trading, labour etc.:A DAY IN THE LIFE: A bit tied up with various things yesterday and today. Just time to say, have a good weekend, before we 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. 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 https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN PUBS & RESTAURANTS: Consumer spending: Chancellor Kwasi Kwarteng has defended his mini-budget, saying it was needed to stop a collapse in consumer spending. Mr Kwarteng said he was working at pace to show markets he had a ‘clear plan’… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Research from CGA by NielsenIQ shows that 49% of consumers would change their food selection if they felt the menu showed it was too calorific… Nielsen goes on to say that nearly one in six (15%) of 18 to 34 year-olds now follow a calorie-controlled diet, compared to just 8% of those aged over 55… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. The wider economy: KPMG reports that the UK is already in a recession that is likely to be intensified by turmoil in financial markets… Other news: Strike action by ASLEF and RMT unions is taking place on Saturday 1 October as well as Wednesday 5 October and Saturday 8 October. Trade bodies warned the strikes will cause ‘further damage’ to the hospitality sector as it also continues to battle the ongoing energy bill hikes. More big movements around the hospitality sector yesterday… COMPANY NEWS: DP Eurasia has reported H1 numbers to end-June saying that system sales rose by 66% to 1.75bn TRY. The company says that the number of stores has increased by 50 to 842. Revenue is up by 42% at 1.085bn TRY with adjusted EBITDA of 155m TRY, up 58.1%. Re the outlook, the Group says it ‘continues to trade in line with its formal guidance…which was reinstated by management in the trading update of 21 July.’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. M&B shares sank yesterday on the company’s announcement that its energy costs had virtually doubled, they moved from £80m to £150m between 2019 and this year… The Carlsberg Group has announced that Ulrica Fearn will join the company as Chief Financial Officer and member of the Executive Board… Vale of Mowbray, a Leeming Bar piemaker, has gone into administration. Earlier this year, the company announced a £4m investment to expand their product line to include Scotch eggs. The UK’s first ‘fried ice cream’ site is reportedly set to be opened by T’s Fried Scoop. Lord Wolfson, the well regarded head of Next, has said that the ‘jury’s out’ on whether Liz Truss and Kwasi Kwarteng’s controversial plan to pump money into the economy without raising taxes would work. HOLIDAYS & LEISURE TRAVEL: The desire to take holidays: Abta predicts that the UK outbound travel industry will grow 15% from 2019 levels over the next five years. The study showed that the UK’s outbound travel industry is worth £49bn to the UK economy per year and supports 720,000 jobs across the UK. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Clia data shows that 90% of passengers who have cruised in the past six months want to sail again. Of those who have never sailed on a cruise vessel before, 66% are open to cruising – a 0.5% increase from 2019. The ability to take holidays. In addition to needing the money to buy a holiday, which is now looking a bit iffy, the consumers needs companies to have put in the infrastructure. There are problems with airport capacity and port capacity at the moment and Eurotunnel has had to cut capacity by around a third because of Brexit. In addition, the CEO of the Port of Dover, Doug Bannister, has warned of a potential ‘tough start’ to next summer’s peak travel period due to the introduction of the EU’s new border control system. Other news: James Bland, director, BVA BDRC, claims value will be a motivating factor for which type of accommodation travellers will choose while travelling. American Express Global Business Travel reports that European cities are likely to see some of the steepest hotel price increases in 2023. The report said that hotel companies face an ‘array of challenges’ that will push up prices, including staff shortages, dealing with pent-up demand and soaring inflation. TUI has had to halt flights to Orlando until Saturday at the earliest after that deadly hurricane earlier this week… OTHER LEISURE: CINE H1 & current trading ‘below expectations’. Cineworld has reported H1 numbers to end-June, saying that ‘as previously reported, the COVID-19 pandemic has materially impacted all aspects of the Group’s operation since the first quarter of 2020. While monthly admission levels progressively recovered in the first half of 2022, they remained below both pre-pandemic levels and the Group’s original forecast for 2022. This led to a general tightening of the Group’s overall liquidity position.’ The company reports revenue of US$1.515bn, up from US$298m in the prior year. Adjusted EBITDA is US$362m vs a loss of US$21m. The loss before tax, however, is still US$364m compared to a loss of US$576m in the same period last year. Cineworld and certain of its subsidiaries are currently in Chapter 11 bankruptcy protection. • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. FINANCE & MARKETS: Huw Pill, chief economist at the Bank of England, has said that, contrary to the government’s opinion, there was very much a country-specific element to the turmoil in the financial markets in the UK this week…. In addition to the IMF and a number of other bodies, former governor of the Bank of England Mark Carney has said that the actions undertaken in the min-Budget last week had the effect of ‘undercutting’ some of the UK’s economic institutions… In a series of bruising interviews punctuated by perplexing silences, PM Liz Truss yesterday insisted that tax cuts were the ‘right plan’. She dodged questions on mortgage rates and currency turmoil by speaking instead about help with energy bills. Whilst we are two years from a mandatory general election, a YouGov poll in The Times has Labour on 54% and the Tories on 21%. PM Liz Truss is to meet the head of the Office for Budget Responsibility today to discuss the fallout after Friday’s mini-budget… Sterling up further at $1.1104 and €1.1323. Oil down at $87.89. UK 10yr gilt yield edging back up again at 4.22%, up 21bps. Markets down yesterday & London set to open down around 5pts as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. |
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