Langton Capital – 2024-03-21 – Shepherd Neame, Hostelworld, LGRS, Naked Wines, High Street & other:
Shepherd Neame, Hostelworld, LGRS, Naked Wines, High Street & other:A DAY IN THE LIFE: So it’s the vernal equinox and, not only are the days and nights roughly the same length in the UK, but that holds all over the world. It’s not precisely correct, as the pointy heads online will tell, because the sun’s a bit bumpy and the earth is too. But, to all intents and purposes, the above is correct and it’ll be one of those moments when we can look up or around and say this is one world, our days are the same length, we breath the same air, we see the same sun or moon or, in my case, the same mangy pigeon making off with some rubbish out of a bin and we can go misty-eyed about it. But that will be soon forgotten because, whilst to a dog or a cat or indeed the above-mentioned pigeon there’s nothing to separate the lot of us, the one from the other, a visit to the nearest football match will show that’s not the way that we tend to see it. 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 SHEPHERD NEAME – H1 NUMBERS: Shepherd Neame has reported H1 numbers for the 26wks to 23 December and our comments thereon are set out below: Headline numbers: The company reports revenue up 4.3% to a H1 record of £89.0m (2023: £85.3m. Underlying EBITDA was up 5,2% to £12.0m and underlying PBT was up 9.9% at £3.8m (2023: £3.5m). Shepherd Neame reports ‘in a period of robust demand, the Company has performed well achieving strong like-for-like sales growth.’ It reports H1 EPS down marginally (on a higher tax charge) to 18.3p per share from 18.7p in the prior year. Shepherd Neame has declared an interim dividend up 5.0% at 4.2p. The company reports that net assets per share were down slightly at £11.92 compared with £12.12 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. PUBS & RESTAURANTS: Delivery: CGA by NIQ’s Hospitality at Home Tracker shows Britain’s leading managed restaurant groups saw an 8% increase in delivery sales in February 2024, marking nine consecutive months of growth, outpacing inflation…. • 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. Labour issues: The Work Foundation has reported that some 1.1 million Britons are currently working on zero-hour contracts. It says that the number rose by around 136,000 last year with younger workers more likely to be employed. The Work Foundation says only 6% of the above are in ‘secure employment with regular income and access to rights….’ • 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 High Street: The Local Data Company has updated on its view of the High Street saying that there was a ‘boom in commercial real estate activity over 2023’. It says its latest report, put together with Green Street, ‘shows a spike in numbers of both closures and openings, representing significant churn.’ It has a positive view and says ‘the overall data picture demonstrates the resilience and flexibility of GB retailers and leisure operators in the face of widespread economic difficulty, with clear opportunities emerging for businesses and landlords….’ • 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. Demographics: Chancellor Jeremy Hunt has suggested that the UK’s Triple Lock, which has directed resources to older consumers for a number of years, may only be sustainable if services are cut elsewhere or if the UK moves to a higher growth path… Transport disruption: London commuters will face disruption in April and May as the Aslef Union announced new dates for Underground walk-outs, with tube drivers backing strikes on April 8 and May 4. Aslef’s Finn Brennan highlighted concerns over London Underground’s plans to impose changes without agreement, particularly longer shifts and the removal of current working agreements. Aslef members at 16 rail companies are planning rolling one-day walkouts from 5-8 April, accompanied by a six-day overtime ban. Despite previous rejected offers, formal talks have yet to resume, leaving commuters facing potential cancellations and delays. Demographic issues: A Zoopla report has found rental inflation has cooled to 5.2% from 15.3% a year ago, with the average tenancy in London costing £2,121 a month…. Other news: Ted Schama, partner at Shelley Sandzer, highlighted Manchester as a hub for culinary firsts outside London at the R200 conference hosted by MCA’s sister title Restaurant in Manchester…. COMPANY NEWS: Loungers has appointed Stephen Marshall as its new Chief Financial Officer, effective 23 April, succeeding Gregor Grant. Marshall brings extensive financial expertise from his previous roles at Pure Electric, Nisbets and Dyson. Naked Wines has confirmed its appointment of debt advisers, stating that it had previously disclosed the appointment in its H1 ’24 figures issued on 15 December 2023…. • It states that discussions with multiple parties are underway to secure a facility with enhanced flexibility to support the company’s growth initiatives. Additionally, following a positive revenue trend in Q3 FY24 and an improved net cash position, Naked anticipates FY24 results to be at the upper end of previous guidance and plans to provide a further trading update before announcing FY24 results in July 2024. Greggs apologised to customers after an IT glitch affected hundreds of checkouts, leading to the closure of some stores. The bakery chain has since resolved the issue, with most affected shops now able to process payments, although the full resolution is expected shortly. Derby Brewing Co’s pub sites have been sold out of administration by Mazars to South Normanton-based company Pub People. The latter runs around 45 pubs, mostly in the East Midlands… • MD Andy Crawford says ‘we are extremely pleased to bring these two excellent and well-loved Derby pubs into our freehold estate. The plan is to invest in both sites with internal and external refurbishments over the next six months. The direction of the businesses will be similar, supporting local cask ale and craft beer breweries, offering our customers great choice and quality of beer.’ Subway has teamed up with McWin to expand its presence in France, the Czech Republic, Luxembourg, and Belgium, with McWin taking over management of existing franchises and planning to open 600 new restaurants over the next decade. Subway currently has nearly 400 existing franchise restaurants in the territory. Retail entrepreneur Mike Ashley has been appointed a consultant to model train maker Hornby after building a stake in the company. HOLIDAYS, HOTELS & LEISURE TRAVEL: Hostelworld has reported full year numbers to end-December saying that full year net bookings totalled 6.5m, an increase of 37% year on year (2022: 4.8m). It says that net revenue for the period was €93.3m, up 34% year on year (2022: €69.7m). The company reports that adjusted EBITDA was €18.4m (2022: €1.3m) and the group reports PBT of some €2.7m (2022: loss €17.1m). A tax credit takes profit after tax to €5.1m (2022: €17.3m loss) and adjusted EPS is 9.91 cent (2022: 5.97 cent loss).. • 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. British holidaymakers are increasingly opting for all-inclusive Easter breaks amid rising living costs, with over a third of bookings made through Advantage Travel Partnership being for such packages. Last-minute getaways are also popular, with one in five bookings made since early February, signalling a strong demand for holidays abroad despite economic pressures. Adventure specialists Intrepid Travel reports departed revenue +113% to £276m in 2023, with bookings up by 68% to £320m. The company posted a record profit before tax of £17.8m, up from a loss of £9m in 2022. The figures led to Intrepid declaring its first dividend since 2019 alongside bonuses for eligible staff. OTHER LEISURE: Games Workshop has updated on trading saying that ‘trading in the three months to the end of February 2024 has been in line with expectations.’ It adds that it has ‘today declared a dividend of 105 pence per share taking dividends declared so far in 2023/24 to £4.20 per share (2022/23: £4.15 per share).’ GAW says ‘this is in line with the Company’s policy to distribute truly surplus cash.’ Reddit, which is to IPO today in New York, has priced its shares at the top of a marketed range, valuing the social media platform at $6.4bn. In an earlier private funding round, the platform had been valued as highly as $10bn. Social media: US Surgeon General Dr. Vivek Murthy claims that global research has revealed a concerning trend where young people are becoming less happy than older generations, resembling a midlife crisis, with social media being a significant factor. The 2024 World Happiness Report showed declining well-being among under-30s, leading to the US dropping out of the top 20 happiest nations list. FINANCE & MARKETS: The US Federal Bank yesterday left rates unchanged, much as expected. It has reiterated its view that there is room for three cuts this calendar year. Markets reacted positively to the news… PM Rishi Sunak has said that 2024 will ‘prove to be the year that the economy bounces back.’ He says ‘we have turned a corner after the shocks of the past few years.’ Sterling mixed at $1.2789 and €1.1695. Oil lower at $86.47. UK 10yr gilt yield down 3bps at 4.02%. World markets mostly higher yesterday and London set to open up as much as 62pts (as at 6.30am) following interest rate news in the US. The Bank of England will report at 12 noon today. The ONS has reported that house prices rose by 0.5 per cent in January, mirroring comments by The Halifax and Nationwide building societies. The ONS reports that the average price of a house in the UK was down 0.6% on a year ago. 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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