Langton Capital – 2023-07-13 – More on JDW & LGRS, CCR, DOM, RTN, GYM, Big Table, GDP & more:
Section TitleMore on JDW & LGRS, CCR, DOM, RTN, GYM, Big Table, GDP & more: A DAY IN THE LIFE: There were four major leisure sector updates yesterday and, in the company’s statements, it was good to see 13 positives and nine uses of the word pleased. There were no obvious ‘positively awfuls’ in there – you do have to watch out for that kind of stuff – like the fire is out (of control) and there were four expressions of confidence. Four people were excited and a similar number were delighted. Or maybe the same lucky person was delighted four times, I didn’t check, but nobody was thrilled, which is sad. There were five uses of the word accelerating but seven things declined. That’s borderline bad but here, you have to be a tad careful, because both good and bad things can accelerate or decline. However, with the latter, it’s a bit clearer that it’s a net-negative as good things tend to decline whilst bad things simply fall. Only one person was disappointed. There were no innovative uses of the word un-delighted. But maybe that was just the delighted guy coming off a high. Ten Entertainment mentioned its own name six times and Hostelworld put its name in its announcement 13 times. JD Wetherspoon and Loungers, in what were admittedly longer statements, mentioned themselves 24x and 34x respectively. E&OE, of course, but interesting nonetheless. Worth reading The Fear Index by Robert Harris. Delighted and thrilled to move 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 LOUNGERS – FULL YEAR RESULTS Loungers yesterday held its full year analyst meeting and our comments thereon are set out below: Trading & pricing: Revenue up 19% YoY to £283.5m and up 85% compared to FY19 levels. LfL sales were up 7.4% YoY and up 17.6% vs FY19. In terms of age cohorts, the sites opened in FY16 and FY17 lagged the overall LfL growth figure at +4.1% and +4.5% respectively. Loungers said volumes were marginally positive in FY23, with most of the LfL growth driven by taking price. In the first 12 weeks of FY24, LfL sales have been +5.7%, with the company saying it was impacted by the movement of the Easter school holidays, which if taken out changes LfL growth to c6.5%…. More on costs & margin, outlook, balance sheet, Brightside, outlook & Langton comment. • 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. JD WETHERSPOON, FULL YEAR UPDATE: Following its Q4 and FY trading update, JD Wetherspoon hosted a conference call for analysts and our comments are set out below: Trading: The company said this year is in-line with expectations and next year should be somewhat better. LfL sales continue to come in ahead of the peer group (per the CGA Tracker). Total sales, due to disposals, are tracking maybe 2.5% behind Like for Like sales. Profit ‘phasing’ should normal. H1 and H2 should be broadly equal from the next financial year onwards. More on costs, balance sheet & Langton comment: • 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: Sport in pubs. New research by CGA by NIQ and Sky Business has suggested that ‘screening live sport in pubs and bars can substantially increase customers’ spending, dwell time and loyalty…’ • 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. Late Night Levy: The Home Office is to extend the powers comprised within the Late Night Levy… • 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. Other News: A survey released by the BBC on Door Security Operatives and the violence and abuse they face within the workplace has prompted the NTIA and UKDSA to call on government to change legislation in order to protect security workers…. Apps and the like. Zonal’s GO Technology report has found that 55% of consumers think that striking a balance between human interaction and technology provides the best experience in venues…. Interest rates: The IMF warns that ‘Should inflationary pressures show signs of further persistence, the [Bank of England’s] policy rate may have to be raised further and would need to remain higher for longer to durably lower inflation and keep inflation expectations anchored…’ • 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. Consumer net income. The Bank of England reports that mortgage payments will rise by at least £500 a month for nearly one million households by the end of 2026. In its report, the Bank said mortgage holders ‘may struggle with repayments’ on loans. Shoplifting on the up. Correlated pretty closely as it may be with disposable income levels, it is perhaps not surprising to hear that Waitrose has reported a rise in shoplifting in its stores across the UK… COMPANY NEWS: C&C Group plc has updated on trading ahead of its Annual General Meeting, which will be later today, saying ‘our branded business has had an encouraging performance in early FY2024, building on growth achieved in FY2023…. • 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. Domino’s Pizza Group Plc has announced the appointment of Andrew Rennie as Chief Executive Officer. Mr Rennie ‘will join as a Director of DPG on 1 August 2023 and will assume the role of CEO with effect from 7 August 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. Music Magpie has reported H1 numbers. Interestingly (from a consumer spending point of view) it says ‘despite the tough consumer environment, we expect consumers to increasingly look to the refurbished tech market and are confident that the business has the right strategy in place for future profit growth.’ Activist investor Irenic Capital Management has called on The Restaurant Group to replace chairman Ken Hanna…. • 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 Big Table Group, operator of Las Iguanas, Bella Italia, Café Rouge, Banana Tree, and Amalfi, has ‘revealed strong trading results in the face of challenging market conditions for the 12 months to 30th October 2022….’ • 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. Hertfordshire-based pub operator McMullen’s reported revenue of £101m in the 53 weeks to 1 October 2022 and profit after tax of £10.1m… The Telegraph reports that Carlsberg is reducing the strength of its Danish Pilsner from 3.8% alcohol by volume (abv) to 3.4% abv in a bid to save money as the Government prepares to raise taxes on alcohol by more than 10%…. Domino’s in the US is to begin offering delivery orders through Uber Eats and Postmates this autumn. HOTELS & LEISURE TRAVEL: Holiday demand, perhaps signs of weakness. Straws in the wind but there is a gathering body of evidence to suggest that holiday demand is perhaps a little slacker… • 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. A survey from Cheval Collection has found that 77% of potential holidaymakers would consider booking a serviced apartment…. The CEO of HS2 has resigned. He earned some £617,300 in the last year for which numbers are available. The RAC has reported that travellers now face record terminal drop-off prices this summer with fees rising at a number of UK airports, in some cases by as much as 30% and some airports introducing them for the first time. Hydro Hotel Eastbourne, the Aquis listed hotel company, has reported H1 numbers to 30 April saying that turnover fell to £1.80m from £1.82m. it says the ‘gross profit percentage for the period was 3% lower than in the six months to 30 April 2022 and staff costs (excluding grants received for the Coronavirus Job Retention Scheme) increased by 3%.’ The company reports that overheads were up by 17%. OTHER LEISURE: Gym Group has updated on H1 trading to end-June saying ‘positive trading trends have continued in H1 2023 with good growth in membership and yield….’ • 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 rising cost of music festival and gig tickets, travel and accommodation has been dubbed ‘tourflation’. Official figures for May show surging ticket prices were among the factors behind higher than expected inflation. FINANCE & MARKETS: The ONS reports that ‘monthly real gross domestic product (GDP) is estimated to have fallen by 0.1% in May 2023 after growth of 0.2% in April 2023, which is unrevised from the previous publication.…’ • 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. US CPI was +3.0% in the year to June, falling to its slowest pace in more than two years and falling from a peak of more than 9% last year. Sterling mixed. Up against a weak dollar at $1.3014 but down against the Euro at €1.1675. Oil higher (weak dollar) at $80.32. UK 10yr gilt yield down 12bps on hopes that next week’s inflation number will be benign at 4.53%. World markets better yesterday and London set to open around 3pts higher 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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