Langton Capital – 2023-06-16 – FSTA meeting, premiumisation, profit recession, Wadworth, rates & other:
FSTA meeting, premiumisation, profit recession, Wadworth, rates & other:A DAY IN THE LIFE: I was thinking about Venn Diagrams the other day. Specifically, how one option need not necessarily exclude another. Or indeed any number of others. How a dog can have both fleas and lice, for example. How a politician might be both mad and bad. Or a low energy version could be both incompetent and a liar because the one doesn’t exclude the other, not by a long chalk. And, in finance, there are some very dangerous combinations. Being an idiot isn’t a crime, for instance, but perhaps being both persuasive and an idiot should be. But anyway, not sure where I’m going with this and, as it’s a Friday and the sun is shining, maybe we’d better move on. Have a great weekend and here’s 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 FULLER’S – FY RESULTS, ANALYSTS’ MEETING: Fuller’s has this morning reported its full year results and our comments thereon are set out below: Headline numbers: FY23 was a 53 week period, comps are for a 52 week period. Revenue up 33% to £336.6m from £253.6m last year. The extra week in FY23 contributed £5.7m of revenue. The company reports that ‘like for like sales in the year grew by 17.5% compared to prior year, with Central London growing by 40.1%.’ Trading: Fuller’s analysis of its managed revenue shows drink sales increased by 35.4% YoY to £179.9m. On a LfL basis, drink sales were up 20.5%. Fuller’s said it expects the LfL sales growth in drinks to continue, driven by bespoke events and its long-term partnership with Asahi. Food sales were up 25.9% YoY to £91.4m, and up 10.1% on a LfL basis. • 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: A ‘profits’ recession: Some numbers out there are looking good but, as one moves down the P&L account, they often get steadily worse… • 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. Openings, closures: Lumina Intelligence believes that new hospitality openings will outpace closures in 2023… • 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. Business rates: Shadow business secretary Jonathan Reynolds has told a UK Hospitality conference that the planned review of business taxes under a Labour government would include hospitality units… Other news: In the US, Bud Light sales have continued their steep decline since the beginning of April accelerating from 6.9%, to 17% and then from May hitting figures of around 23 to 25% for each week…. COMPANY NEWS: Brewer and pub company Wadworth has reported revenue for its year to end-December up from £25.1m to £36.3m… • 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. Mark Derry, executive chairman of Heartwood Collection, tells the MCA that the last year has ‘not been particularly easy’ despite the company acquiring 11 freehold sites…. Moroccan Costa Coffee franchisee, Goldex Morocco, aims to reach between 30 and 40 outlets within the next five years. Goldex currently has 2 Costa Coffee units in Morocco and plans to open 5 more in 2023 and a further 7 in 2024. Breal Group has acquired the business and assets of London-based Brick Brewery for around £318k. The London-based private equity firm purchased Black Sheep Brewery out of administration last month. Not over till it’s over. The Joint Administrators of Harrogate-based Bleiker’s Smoke House advise that the purchaser of the business’s assets has not paid the agreed amount…. HOLIDAYS & LEISURE TRAVEL: The ONS GDP report shows that the UK travel agency and tour operator sector is still 22% behind pre-pandemic levels, despite the economy as a whole now being marginally ahead… Luton airport saw passenger numbers rise to 1.5 million in May, with year-to-date passengers at almost 6.2 million, up 45% YoY…. Sky News reports that proxy advisor ISS is recommending Saga shareholders to reject the payment of a six-figure bonus to CEO Euan Sutherland, calling it ‘inappropriate’… The Croatian Tourist Association has reported that the country is expecting a record year for tourism following Croatia’s inclusion in the free-movement Schengen area… FINANCE & MARKETS: Former Bank of England governor Mark Carney has suggested that UK interest rates will need to remain relatively high for a number of years… The European Central Bank has raised interest rates across the Eurozone for its 8th meeting on the trot. Rates are at 3.5%, their highest in more than 20 years. 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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