JDW full year, private co accounts, Jet2, Playtech, WfH, trading & other:

A DAY IN THE LIFE:

I used to tell the kids that I could stop the rain when it was belting down and drumming off the roof of the car when we were driving on the motorway.

I had to concentrate my effort, screw up my face and try very hard but, coincidentally always when we went under a bridge, I was able to make the rain stop for a second or two and then, as we emerged on the other side, I would run out of psychic energy and the rain would start again.

This amused me for considerably longer than it did the kids because, as one or the other of them hit six or seven years of age, they delighted in telling each other that I was a phoney and that I could no more stop the rain than I could make it start in the first place.

And I’ve been struggling to regain my credibility every since. It’s that ‘I must be a comedy God’ feeling you get when you make a toddler laugh. On to the news:

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JD WETHERSPOON – FULL YEAR NUMBERS:

JD Wetherspoon has today reported full year numbers and our comments thereon are set out below:

Headline numbers: JDW reports LfL sales for the year are up 10.6% at £1.925bn. LfL sales, as the company has fewer pubs now open, were up 12.7%. The company reports that its underlying operating profit is up from £25.7m to £107.1m and the group reports an underlying PBT of £42.6m against a loss of £30.4m in the prior year. Diluted earnings per share are 26.4p (2022: loss 19.6p) and there is no dividend (FY22: nil). Free cash flow per share is 211.4p (2022: 17.3p).

This includes the impact of the debt interest rate swaps income. Excluding this, the company reports that free cash flow was around £102m. The above numbers are before ‘separately disclosed items’. These comprise a number of issues, the largest being negatives due to the impairment of values and losses on disposal alongside a £65.1m credit on the termination of the group’s interest rate swaps. Costs remain an issue but the company is able to report that its operating margin (before separately disclosed items) was up from 1.5% last year to 5.6%.

Current trading: Wetherspoon chairman Tim Martin says ‘Wetherspoon continues to perform well. In the first nine weeks of the current financial year, to 1 October 2023, like-for-like sales increased by 9.9%, compared with the nine weeks to 2 October 2022.’

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PUBS & RESTAURANTS:

Working from Home:

A recent KPMG survey of global executives found that 64% expect employees to be back working fully in-office within 3 years, and nearly 90% plan to tie compensation to more regular in-office work, despite broader trends towards workplace flexibility….

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Other news:

CGA’s industry performance monitor has been relaunched as the CGA RSM Hospitality Business Tracker. The monthly service, previously known as the Coffer CGA Business Tracker, is now supported by accountants RSM UK. CGA’s Karl Chessell says ‘we are delighted that RSM UK is providing expert leadership of this powerful service.’

A supreme court decision on holiday pay could entitle UK workers to potentially thousands of pounds each as overtime should be taken into account when determining holiday allowances.

Automatic beer vendors: South Korea’s largest service robot maker, Doosan Robotics, is set for a £1.1bn stock market debut, the country’s biggest IPO this year, as the company behind beer-serving robots seeks to capitalise on the exploding global robotics market that could reach £180bn by 2030….

Bidfood has identified a number of key areas that it suggests will help attract consumers in the next 12 months. Alongside CGA, it reports that ‘value is the main driver at the moment and eating out is increasingly viewed as a treat or for a special occasion, so the stakes are high and operators need to get the offering right.’ It says operators should offer health-conscious choices and should offer consumers the chance to make ethical choices.

COMPANY NEWS:

Burger & Lobster has reported its full year numbers for the year ended 1 January 2023 to Companies House, with revenues up 47.2% YoY to £36.5m and profit before tax recovering to £681k from £81k the year prior….

Cameron’s Brewery has reported its full year numbers for the year ended 1 January 2023 to Companies House, with revenues up 25.8% YoY to £62.0m and a loss before tax of £5.5m down from a profit before tax of £496k the year prior….

FT Foods, a sizable KFC franchisee, has reported revenue up 8.6% to £22.7m in the period ended 21 December 2022. Profit before tax fell to just £64k, down from £635k the year prior, with EBITDA also falling to £1.2m from £2.2m. Aggregate bank loans increased to £20.6m, up from £6.9m as at the end of the period before.

The Ivy restaurant chain, owned by Richard Caring, reported turnover growth of more than £100m, reaching £302.9m for the year ending 1 January 2023….

Constellation Brands yesterday reported Q3 sales up 7%, to $2.84 billion, compared with analysts’ average estimate of $2.82 billion….

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Bar restaurant company Darwin & Wallace has announced that chairman Patrick Wilson is to leave the board with current non-executive director Mark Crowther set to take his place. Simon Wheeler of Imbiba has rejoined the board along with new non-executive director Steve Wilkins.

The MCA reports that London-based vegan fast food chain Neat Burger is keen to explore opportunities outside the capital as it gears up for further international expansion in Europe and the US.

Shake Shack is to open a unit in Oxford. Whilst a 2023 opening is thought likely, a firm date has yet to be announced.

I am Döner is to open its first site in London after signing a franchise deal in the capital.

Fine dining restaurant London Stock is to open at its new home on 6 Sackville Street in the heart of Mayfair!

HOLIDAYS, HOTELS & LEISURE TRAVEL:

Jet2holidays has put its summer 2025 programme on sale. It has a planned capacity of 16 million seats during the season. The operator will fly additional aircraft out of Birmingham, Liverpool, Stansted and Manchester airports.

The latest forecasts from American Express Global Business Travel suggest that hotel rates will continue to rise in most locations globally next year. It says ‘despite modest economic prospects and a strong hotel development pipeline, hotel prices are trending upwards in 2024, albeit with reduced velocity compared to 2023.’

Plans for a 300-bedroom Ruby hotel in Edinburgh’s city centre have been approved

OTHER LEISURE:

Sportech yesterday announced that, following the passing of resolutions in favour, the ‘cancellation of admission of the Company’s ordinary shares of 10p each to trading on AIM will become effective on 17 October 2023.’ The company will re-register as a private limited company with the name Sportech Limited.

Playtech has announced that it ‘notes the announcement made earlier today by Tecnologia en Entretenimiento Caliplay [that it] has issued legal proceedings in Mexico against, amongst others, Playtech Software Limited and PT Services Malta Ltd….’

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Mythtopia, a new eco-glamping resort near Edinburgh featuring augmented reality and NFTs, is set to open in Spring 2024. Mythtopia will also be the UK’s first holiday destination exclusive to NFT token holders. The once-booming NFT industry has hit hard times recently, with valuations of the digital assets collapsing as investor interest wanes.

The UK cloud computing market faces a competition probe as Amazon and Microsoft dominate with 70-80% combined market share; regulator Ofcom worries lack of competition impedes provider switching and has referred the sector to the Competition and Markets Authority.

Advance ticket sales for Taylor Swift’s Eras Tour concert film have now reportedly topped $100m (£82m). It is thought that stadium ticket sales could hit as much as $1.4bn. This would which would break the record currently held by Elton John for his farewell tour.

FINANCE & MARKETS:

The UN trade agency warns central banks risk causing recession by keeping interest rates high to curb inflation…

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S&P has released PMI numbers for the UK construction industry saying that it has contracted at its fastest rate since May 2020, during the height of Covid. The Construction PMI number was 45.0 and the housebuilding PMI was 38.1. Any number below 50.0 implies contraction…

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The Telegraph quotes Barclays as saying that a rise in bond yields will only stop after there has been a ‘prolonged slump in stock markets.’ That isn’t very upbeat. Barclays says ‘the magnitude of the bond sell-off has been so stunning that stocks are arguably more expensive than a month ago, from a valuation standpoint.’

The SMMT reports that new car registrations in the UK were up 21% in September on the same month last year. This is the 14th consecutive month of growth.

The U.S. Labor Department has reported that new filings for unemployment benefits amounted to a seasonally adjusted 207,000 for the week ending Sept. 30, up around 2,000 on the week before.

Sterling a shade higher at $1.2175 and €1.155. Oil lower at $84.17. UK 10yr gilt yield down 6bps at 4.56%. World markets mixed yesterday. London set to open up around 20pts as at 6.30am.

RETAIL WITH NICK BUBB:

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