Langton Capital – 2022-10-19 – Just Eat, RBG acquisition, inflation, Sept Tracker, staffing, Netflix & other:
Just Eat, RBG acquisition, inflation, Sept Tracker, staffing, Netflix & other:A DAY IN THE LIFE: Running out of time. 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 SEPTEMBER TRACKER: CGA has produced its September Tracker saying that ‘hospitality groups’ September sales drop year-on-year as inflation bites.’ Inflation, of course, should be propelling sales up rather than down but CGA reports that managed operators’ trading was 3.0% below September 2021 but 4.0% up on 2019… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. JUST EAT TAKEAWAY – Q3 NUMBERS: Just Eat Takeaway has this morning reported Q3 numbers and our comments on today’s update are set out below: The numbers: Total orders for Q3 are down 11% on last year at 235.3m. Gross transaction value was €6.9bn, up 2% on the same quarter last year. JET says its focus has been ‘on profitability delivered material improvements to Revenue per Order, Delivery costs per Order and Overheads & Opex’. It says ‘as a result, Just Eat Takeaway.com was Adjusted EBITDA positive in Q3 2022, materially ahead of prior guidance at the beginning of the year and is on track towards its long-term target margins.’ The company adds that ‘adjusted EBITDA improved in all segments in Q3 2022, both year-on-year as well as on a sequential basis.’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. REVOLUTION BARS – FULL YEAR NUMBERS & ACQUISITION OF PEACH PUB CO Revolution Bars Group has this morning reported full year numbers. In addition and advised by Sapient, the company has announced the purchase of the Peach Pub Co and our comments are set out below: Headline numbers: RBG says total sales in the year to 2 July were £140.8m, up from £39.4m in the prior year. Adjusted EBITDA was £19.4m (2021: EBITDA loss £3.9m) with a PBT of £2.1m against a loss of £26.3m in the prior year. Earnings per share came in at 0.9p against a loss of 21.1p per share in FY21. There is no dividend (2021: nil). RBG reports that, as at 2 July, it had £4.1m cash at bank (2021: debt £3.6m)…. Acquisition of Peach Pub Company: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. PUBS & RESTAURANTS: Supply issues: The GMB union warns that family restaurant chains including Burger King, KFC and Pizza Hut are facing the prospect of ‘severe disruption’ to food supplies in the run-up to Christmas due to strike action… Inflation: The ONS reports that CPI rose to 10.1% in the year to September, up from 9.9% in the year to August. It says this is a ‘returning to July’s recent high.’ It adds that ‘on a monthly basis, CPI rose by 0.5% in September 2022, compared with a rise of 0.3% in September 2021…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Timber prices and soared and Retail Week reports that Ikea has increased the prices of its furniture by up to 80% over the last year… The consumer: Mortgage rates could ease but, at the moment, that isn’t happening per Moneyfacts… The TUC maintains that working families “have been pushed to breaking point” after the “longest wage squeeze since Napoleonic times”… COMPANY NEWS: Fuller’s is to partner with Rest Less in order to attract older workers back to employment… Big Hospitality reports that bakery chain Paul is opening its first franchise site in the UK in a bid to open more stores across the country. Paul already has 35-owned stores in the UK, and will be handing over its Oxford venue to father and son Graham and Matthew Allan, making it the first franchise unit. Pernod Ricard has acquired a majority stake in Código 1530 Ultra Premium and Prestige Tequila. Pernod Ricard chairman and CEO Alexandre Ricard said ‘Código’s range of exquisite Tequilas reinforces our offer of Ultra Premium+ agave products in the US, where the category is enjoying a very strong momentum.’ HOLIDAYS & LEISURE TRAVEL: Staffing issues: Travel Weekly reports that a shortage of staff is leading to acute problems with supply for inbound travel businesses… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Other news: Analysis has shown that the number of “entire places” for rent in coastal spots in England and Wales increased by 56% between 2019 and 2022… Legal and regulatory professionals in the travel buyers industry have warned that British business travellers are already being turned back from European countries for breaching post-Brexit movement restrictions. The rail workers’ union RMT has announced the dates for more strikes next month after it says Network Rail made a U-turn on a pay offer. Thee strikes are set for 3, 5 and 7 November. Yesterday, Eurostar cancelled trains between Paris and London as nation-wide strikes hit France. Parkdean Resorts took part in the Great British Beach Clean this September, aiding conversation work and helping to keep seas clean. OTHER LEISURE: Netflix yesterday evening reported Q3 numbers and confirmed that it has stopped losing customers after losing some to rival streaming operations in prior quarters. Netflix reports it added 2.4 million households to its base in Q3… FINANCE & MARKETS: U-turns. The IMF has said that the UK government’s various U-turns on tax cuts, energy support and spending will help tackle inflation… Inflation. See Pubs & Restaurants above for today’s September number. In addition, the U-turn by the government to limit fuel price capping to six months is likely to fuel inflation in Q2 next year. Barclays has said that inflation is likely to remain above 8% through 2023. It had been looking at 3% by the end of Q4… Housing market. Tearing up PM Liz Truss’s economic policy should see interest rates peak at rates somewhat below those that would have registered had her policies been enacted. This should reduce – but not completely prevent – further damage to the housing market. Mortgage rates. These could dip but, just at the moment, they are not doing so and on Tuesday they hit new recent highs. See Pubs & Restaurants, The Consumer, above. The Bank of England has said it will press ahead with plans to shrink its balance sheet, i.e. quantitative tightening. The Bank will avoid selling long-dated gilts for the moment in order to allow the market at the long end to continue to settle down. Sterling weaker yesterday at $1.1319 and €1.1501. Oil lower at $90.41. UK 10yr gilt yield down 4bps at 3.93%. World markets better yesterday and London set to open around 37pts higher 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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