Langton Capital – 2023-09-06 – RTN H1 numbers, Services Sector, ghost kitchens, drip pricing & other:
RTN H1 numbers, Services Sector, ghost kitchens, drip pricing & other:A DAY IN THE LIFE: I have to accept that the relationship we have with the dog is one of give and take. We give her food and shelter and she gives us manky old toys that she’s finished playing with and deer ticks. And, whilst the former are just a nuisance, the latter can be a bit of a pain as the ticks in question don’t seem to mind whether they’re attached to deer, dogs or humans and, whilst they intend to be fellow travellers in your life for a few weeks, it has to be said that they don’t give a lot back. Hence, it seems that ‘long trousers in the long grass’ could be the rule for the foreseeable. Incidentally, the UK deer population is not thought to oscillate between about 1.5m and 3.0m, apparently the highest for 1,000 years. Good on them. Though somebody should have a word with them about hygiene. And road sense given the wreckage one now seems to see by the side of the road. 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 RESTAURANT GROUP H1 NUMBERS: The Restaurant Group has this morning reported H1 numbers and our comments thereon are set out below: Headline numbers: • RTN reports ‘strong like-for-like sales and Adjusted EBITDA growth driven by Wagamama, Pubs and Concessions.’ It says its ‘trading performance supports a moderate increase in management’s FY23 Adjusted EBITDA expectations’. Total revenue is up 10% to £467.4m (2022: £423.4m). LfL sales, adjusted for the VAT benefit experienced last year, were Wagamama +7%, Pubs +12%, Leisure -2%, Concessions +30%. • Adjusted EBITDA is up 15% to £36.3m on a pre-IFRS 16 basis – but this after stripping out the VAT benefit last year. The reported adjusted EBITDA last year was: £41.7m. Adjusted PBT is £7.2m on a pre-IFRS 16 basis. This is ‘well ahead of the VAT adjusted comparable loss of £0.1m in H1 2022 (2022 reported Adjusted profit before tax: £10.2m).’ • 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: Services sector: The UK services PMI registered 49.5 in August, down from 51.5 in July and the lowest since January. The figure is up from the earlier flash estimate for August of 48.7. Respondents cited weaker business and consumer spending, combined with the impact of higher borrowing costs on client demand…. • 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. Ghost kitchens: The Financial Times reports that ghost kitchen startup CloudKitchens has fired staff and closed warehouses to cut costs… ‘Drip pricing’ (and fake reviews): The government has launched a ‘clampdown on fake reviews and hidden fees…which will help customers cut the costs of living’. It says measures are proposed to ‘boost transparency and help consumers with cost of living as they shop’ and it says ‘fake reviews, hidden fees and confusing labels’ will be ‘targeted in new consultations, aimed at improving services for customers….’ • 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 government also says it has launched a consultation that ‘seeks views on measures to stop fake reviews’. It says ‘the ambition is to ensure that consumers and traders continue to benefit from reviews that represent a genuine experience, while stamping out the purchase and sales of fake reviews, and ensuring firms take an appropriate level of responsibility for reviews on their websites…’ • 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. Trading: S4 Labour has updated on hospitality sales saying that they rose by 3.2% ‘led by London.’ It says ‘overall sales were up 3.2% compared to last year, led by a strong August for London.’ S4 Labour says ‘the Capital saw a solid increase of 9.9% across the board, with food and drink sales up 12% and 8.7% respectively….’ Energy costs: UK Hospitality has said there is an ‘urgent need to implement the recommendations set out in its review of the non-domestic energy market.’ CEO Kate Nicholls says ‘the sheer devastation of the energy crisis has brought to light the need to fix the uncompetitive and wholly unfair business energy market….’ Other costs: Sky News reports that the ‘price of petrol in the UK could soon rise further after the cost of oil jumped to its highest level this year.’ It points out that Brent crude climbed to more than $91 a barrel on Tuesday afternoon, ‘a price not seen in the market since November 2022’. COMPANY NEWS: Honest Burgers has announced plans to expand into the QSR burger market after the success of its smashed burger which launched last year and which cooks in less than 2 minutes. The company is using funds from a crowdfunding campaign on Crowdcube to launch the QSR concept. Per MCA, Coffee#1 is eyeing the East Midlands, Home Counties, North to suburban Manchester and potentially Cornwall for expansion. The Nero Group-owned chain currently operates 113 sites and has recently opened a new site in Yate, South Gloucestershire. B&M has agreed to acquire 51 of Wilko’s 400 stores in a deal worth £13m after Wilko fell into administration in August. Wilko’s stores remain open for now as it seeks a buyer for a bigger chunk of the estate. The MCA reports that Rosa’s Thai FD Gavin Adair says the company has ‘huge potential’ as it prepares to unveil a new menu…. Purity Soft Drinks, the maker of Juice Burst, reports sales up 37% YoY to £27m with volumes up by 19.4%. The company said its Juice Burst has grown to a £75m brand. HOTELS & LEISURE TRAVEL: Data from OTA Lastminute.com shows bookings have surpassed 2022 levels, driven by the draw of late all-inclusive bookings. Data shows that spending with airlines grew by 32.1%, while travel agents saw a further uptick of 3.7% in August. Lodging Econometrics reports that the UK continues to see the highest level of hotel development in Europe with 322 projects and 45,000 rooms… OTHER LEISURE: City AM reports that the valuation of Manchester United has slipped below $4bn, around half of the price that the Glazer family, which own the company, is said to be asking for the company…. FINANCE & MARKETS: For Service Sector PMI coverage see Pubs & Restaurants above. The Society of Motor Manufacturers and Traders (SMMT) reports that UK car sales have risen for the 13th month running. Sterling mixed at $1.257 and €1.1701. Oil higher at $90.04. UK 10yr gilt yield up 5bps at 2.51%. World markets mixed to down yesterday with London set to open down around 23 points 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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