Langton Capital – 2023-03-16 – Budget, delivery, ROO (FY numbers), GYM (ditto) & other:
Budget, delivery, ROO (FY numbers), GYM (ditto) & other:A DAY IN THE LIFE: If your dog could talk, what would you ask it? Maybe ‘do you really want to get your whole head right in there?’ or ‘what do you really find so exciting about a twenty minute walk in the drizzle?’ or ‘why do you imagine it’ll be dry outside the front door if it’s raining outside the back?’ Answers on a postcard. Plenty of Budget stuff covered elsewhere but still some pertinent stuff to highlight. Or at least we hope that’s what we’re doing. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN DELIVEROO FULL YEAR NUMBERS: Deliveroo has this morning reported full year numbers for calendar 2022 and our comments thereon are set out below: Headline numbers: Deliveroo (which had reported Q4 numbers on 19 Jan) today reports GTV up for the year up 9% at £6.8bn with revenue up 14% at £1.975bn. The company reports an adjusted EBITDA of minus £45m (2021 loss £100m) both numbers excluding Australia and The Netherlands Company Comment: The company reports that it has made ‘excellent progress on path to profitability, delivering positive adjusted EBITDA in H2 2022 – significantly ahead of expectations.’ This, whilst… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. THE SPRING BUDGET: Industry response. The Budget was broadly deemed helpful where it helped. But there were some gaps. See also Finance & Markets below: UKHospitality CEO Kate Nicholls has responded to the Spring Budget, saying she is pleased at the ‘significant reforms to childcare and the measures to help the over 50s re-enter the workforce’… Help with Duty: Chancellor Hunt has announced that beer and other draught products in pubs will be 11p cheaper than in supermarkets, calling it a ‘Brexit pub guarantee’ and set to come into effect from April 1. Hunt’s previously announced measures will see planned hikes in alcohol duty put off until 1 August… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Labour supply issues: Bizimply CEO Conor Shaw says the hospitality industry will need to ‘meet [older employees] halfway and support the work/life balance that many are looking for…Older workers will feel that their decades spent in the workplace have earned them the right to enjoy some leisure time, but equally many of them are likely to have a range of commitments…’ Help for consumers: The Spring Budget has confirmed that the Energy Price Guarantee will be kept at £2,500 per year until the end of June (for consumers)… Any disappointments? Apart from left-field Hail Mary wishes that were never likely to be granted (10% VAT and the like), there was some justifiable disappointment that there was no further energy support measure announced for business (or for some sectors, namely ours) and there was nothing done to reform business rates… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. The British Institute of Innkeeping is downbeat, saying ‘today’s Spring Budget Statement offers little comfort for BII members. It says the chancellor has done little to help publicans ‘leaving many facing imminent business failure as meaningful Government [energy] support falls away at the end of the month… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. PUBS & RESTAURANTS: Delivery: CGA has reported that delivery and takeaway sales dropped again in February. It says there is continued ‘post-COVID softening.’ It says that ‘delivery and takeaway sales at Britain’s top managed restaurant groups fell year-on-year for the 16th month in a row in February’ … • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Lumina Intelligence’s Foodservice Delivery Market Report 2023 shows that pub and bar delivery availability has increased by 115% since the pandemic… Train strikes: UKH has said that tube and rail strikes have cost the pub and restaurant industry as much as £600m. CEO Kate Nicholls says ‘our pubs, bars, coffee shops, hotels and restaurants, to name a few, continue to suffer as collateral damage, with total lost sales since the start of the dispute last year now expected to reach more than £3bn.’ Beer: The SIBA Craft Beer Report 2023 shows that 8 out of 10 people believe a well-run independent brewery has a positive effect on its local community… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Budget. Beer deemed to have triumphed over wine. The price of a bottle of wine could rise by 44p this summer after Jeremy Hunt limited a freeze on alcohol tax to pints, per press reports. The WSTA says the changes will put duty of an additional 44p on a bottle of still wine and 76p on spirits. Other news: City AM reports that the Square Mile experienced a 30% spike in planning applications during the pandemic, with 56 applications submitted between 2020-22. Of these applications to the City, which generates more than £75bn in tax revenue a year and is worth 12% of UK GDP, 30 were made in 2022. World Bulk Wine reports that wine imported in bulk to the US recorded an historic high in value terms, up 5.5% to$420m. The top six leading supplying countries represented 95.6% of the overall volume of bulk wine imported in 2022, with Canada and Chile the primary suppliers. COMPANY NEWS: Shake Shack is to open its 14th unit in the UK in Clapham, London. Burger chain Carl’s Jr. has instructed Christie & Co to support its launch into the UK market by seeking out ‘several’ franchise partners to facilitate a national rollout. The company is reportedly looking to partner with multiple ‘ambitious’ hospitality entrepreneurs/investment groups who can open at least 20 restaurants in their respective region. Dishoom is set to open its first restaurant in Southern England, to be located in Brighton. The company has applied for an alcohol licence at 31a and 32 East Street in The Lanes, a site previously occupied by Socialite Restaurant and Bar. HOLIDAYS & LEISURE TRAVEL: Blantyre Capital and its operating partner Fairtree Hotel Investments have acquired privately owned Crerar Hotel Group which owns seven 4 and 5 star hotels. This acquisition marks Blantyre and Fairtree’s fourth landmark hospitality purchase within the UK since 2021. Virgin Orbit is reported set to pause operations from today. All employees are likely to be furloughed. CEO Dan Hart is reported to have told staff that the company needs time to finalise a new investment plan. Hotel company AGO has opened its first Central London hotel at Paddington. OTHER LEISURE: GYM. Cautions on ‘uneven’ start to the year. Says cost increases will offset improvement in trading. The Gym Group has reported full year numbers saying that revenue rose by63% to £172.9m. The company reports EBITDA of £38m (after normalised rent) but a loss of £6.9m (last year, loss £28.5m)…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. FINANCE & MARKETS: The Budget: Main points. Corporation tax will rise from 19% to 25% as pre-announced. Capital deductions at 100% for three years. Some help for pubs & brewers (see above). Major moves to get older people and women into (or back into) the workforce etc. The UK economy will shrink this year but avoid a ‘technical recession due to the timing of the quarterly declines. Inflation should fall from 10.7% in Q4 last year to 2.9% in Q4 this. £2,500 energy support cap to remain for 3yrs. Moves to help pubs (vs supermarkets) – see above…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Reaction: Journalists, CBI, BCC & others. For industry comment, see above. ITV’s Peston says the 100% capital allowance is the ‘most expensive item in the budget. At a cost of £9bn. Big incentive to invest. Softens the impact of rise in corporation tax rate….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Fears of banking contagion blighted the markets yesterday as shares in Swiss bank Credit Suisse fell 20% at one stage. Sterling mixed at $1.2075 and €1.1374. Oil lower at $74.34. UK 10yr gilt yield markedly lower at 3.32% (down 19bps). World markets much weaker yesterday but London set to bounce & open up around 87pts as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. |
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