Langton Capital – 2023-09-26 – DP Poland, AG Barr, Safestay, Cooks Coffee, economy, delivery etc.:
DP Poland, AG Barr, Safestay, Cooks Coffee, economy, delivery etc.:A DAY IN THE LIFE: So here’s a question for you, do I buy a floppy disk reader? I mean, who has floppy disks these days? Well it turns out that I do because we found two of them in the cupboard under the stairs, vintage circa 1999, when clearing out some old rubbish and the only way I’m going to be able to find out what’s on them is to shell out sixteen or seventeen quid for something I’ll probably use once and then bury so deep that I’ll never be able to find it again. Odds are, they’re blank, of course. Or they may have some of the kids homework on them or have one of my grotty old financial models, probably written in Lotus 1-2-3 and now unreadable. But what if they contain priceless nuggets? I can’t think what but. No, really, I can’t but that’s the problem isn’t it? I’ll never know for sure unless I shell out and I’m talking myself into it already. 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 Sent separately Tues 26 Sep 23 DOMINO’S PIZZA POLAND – H1 NUMBERS: DP Poland has reported H1 numbers to end-June 2023 and our comments thereon are set out below. Headline comments: DPP reports that revenue increased by 26.5% to £20.96m with group system sales up 25.1% at £21.4m. The group reports EBITDA of £1.05m (up 171%) with margins more than doubled to 5.02% from 2.34%. The group reports a loss for the period down by around a quarter at £1.59m. DPP reports that sales growth was driven by order count up by 11.3% and average ticket price up by 5.8%. The group had cash at bank of £2.7m at end-June compared with £1.7m a year ago (though there was a cash raise in the intervening period) Company comment: CEO Nils Gornall reports ‘H1 2023 saw the company move into positive store EBITDA.’ He says he is ‘confident that we can build on this in the second half of the year.’ Mr Gornall says ‘delivery times are coming down, which are driving improved customer satisfaction and increased orders which are now regularly exceeding 700 orders per store per week….’ • 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: Footfall: Springboard has reported that footfall in the UK fell by 0.5% week on week in the week to 23 September. Short periods are impacted disproportionately by the weather, sporting events and the like… The economy: Accountant KPMG reports on ‘renewed signs of stress’ in the UK economy. It says ‘UK growth is expected to slow over the remainder of this year and into 2024.’ The accountant writes ‘with interest rates reaching their potential peak, attention will turn to fiscal policy, however the upcoming general election could prolong the uncertainty for businesses and delay investment….’ • 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. Delivery: Foodservice analyst Peter Backman writes that the world of restaurant delivery is no longer a ‘sideline’ for restaurants, but instead ‘something that is done in its own right…’ Access to labour: The Caterer reports that rises in visa charges could exacerbate labour problems. From 4 October the price of an overseas skilled worker visa issued for three years or less will rise from £625 to £719, while a shortage occupation skilled worker visa will rise from £943 to £1,084…. Other news: The Resolution Foundation states that 15 years of UK economic crises have led to the economy being 4% smaller than it could have been, with the average family worse off by around £1,400 a year. The CBI Distributive Trades Survey for September shows retail sales volumes fell yet again, albeit at a slower pace (weighted balance of -14% from -44% in the year to August)…. Labour. The Chartered Institute for Personnel and Development has reported that UK workers are noe taking more sick days than at any point in the last ten years. Staff took on average 7.8 sick days in the last year, up from 5.8 before the Covid-19 pandemic. Stress is said to be the most common cause. It says the cost-of-living crisis is having “profound impacts on many people’s wellbeing.” Shrinkflation. Galaxy is reported to have cut the size of its chocolate bars whilst prices in the shops are said to have gone up. COMPANY NEWS: AG Barr has reported H1 numbers saying that revenues rose by 33.2% to £210.4m with LfL sales up 10.4%. The company reports PBT of £27.8m (up 12.6%) with basic EPS down 0.6% at 18.87p on a higher tax rate. The H1 dividend its up 6% at 2.65%…. • 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. Cooks Coffee has announced that it expects to appoint administrators to place its 11-strong Triple Two coffee franchise business into an insolvency process. The recently listed company raised money in November 2022 on the London market. At the time, the company raised around a third of its intended funding achieving a £0.5m raise. The company reports that the Triple Two business was growing before the Covid-19 pandemic but has been adversely affected by the current market environment. The larger Esquires business is performing well and will not be affected by the insolvency process…. • 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 MCA reports that pub operator and family brewer Arkell’s has seen trading remain strong in recent years despite an unsteady consumer environment, with the company planning to continue its steady expansion. The company opened its first new-build in a generation last year, with £5m being spent on The Strawberry Thief in Swindon’s Tadpole Garden Village. Patty & Bun’s CVA was approved on 11 September, according to documents filed at Companies House. A majority of 84.3% creditors voted in favour of the proposals, with 15.6% against, after some modifications were made. The arrangement involves the repayment of 71p in the pound to all unsecured, non-preferential creditors. A consortium led by Berry Bros. & Rudd has launched a takeover bid for English winery Hambledon Vineyard for £22.3m. The sparkling wine producer announced it had agreed on terms to be bought by the consortium, also led by The Symington Group of Portugal. Yorkshire-based Hooting Owl Distillery has submitted planning permission to City of York Council to move its operations within the City Walls. The gin producer will take over the former Society Lounge and Bar on Rougier Street, which closed during lockdown in 2020, transforming it into ‘an immersive experience’ with a speakeasy gin lounge. Krispy Kreme Inc has announced that it has promoted Josh Charlesworth to president and CEO, effective from 1 January next year. Mr Charleworth will succeed Michael Tattersfield. HOTELS & LEISURE TRAVEL: Safestay has reported H1 numbers to end-June saying that it is seeing ‘strong demand from not only young travellers but also families and business travellers.’ The company reports ‘strong revenues’ of £10.5m (2022: £7.3m) with EBITDA of £2.6% (2022: £2.5m). The group sahs this was ‘held back by a one-off payroll increase and abnormally high energy costs.’ Safestay reports an increased loss before tax of £1.00m (2022: loss £0.34m). It reports cash at bank of £7.3m (2022: £5.2m) and it says it has seen ‘strong summer with sales in July and August up 11% and 16% respectively on 2022 and forward bookings for the remainder of 2023 significantly ahead of last year…’ • 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. Whitbread PLC has announced that its Premier Inn brand has acquired the freehold interest of an almost 90,000-square-foot office building in London that it will convert into a Premier Inn hotel…. Gatwick is set to cancel around 82 departures in the next week due to staff shortages in the air traffic control tower driven by illness. It says around 30% of air traffic control staff are not available. The largest number of cancellations will be on Friday. Doncaster’s Labour mayor Ros Jones has said the reopening of Doncaster Sheffield airport is her ‘number one priority’. The local council claims the airport could be profitable within five years should it reopen. OTHER LEISURE: Entain’s shares finished the day down 14% yesterday on the back of its profit warning. The company pointed to adverse sporting results and regulatory headwinds that could remain stronger, for longer, than previously expected. The Writers Guild of America (WGA) claims to have reached an ‘exceptional’ preliminary agreement with major studios. The agreement must first be approved by WGA leadership and union members before it can take effect. The SAG-AFTRA actors’ union remains on strike. Lego has halted its project to make bricks from recycled drinks bottles instead of oil-based plastic, saying it would have led to higher carbon emissions over the product’s lifetime… Go-kart supplier Formula K International entered administration on 7 September after Covid lockdowns had a major impact on cashflow, followed by supply chain disruption upon reopening from the pandemic. Boss of Spotify, Daniel Ek, has said the platform has no plans to completely ban content created by artificial intelligence. FINANCE & MARKETS: Shares in China property company Evergrande slid yesterday as its unit Hengda Real Estate defaulted on around $547m of debt. Sterling mixed at $1.2202 and €1.152. Oil price lower at $92.89. UK 10yr gilt yield up 6bps at 4.32%. World markets mixed to lower yesterday. London set to open down around 2pts 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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