Langton Capital – 2024-03-26 – Revolution Bars, AG Barr, Fever Tree, 888 Holdings, Flutter & other:
Revolution Bars, AG Barr, Fever Tree, 888 Holdings, Flutter & other:A DAY IN THE LIFE: Well, it feels quiet out there and, if the out-of-office replies are anything to go by, it’s down to Easter, the holidays and the appeal of the slopes. Or the winter sun if you’re that way inclined. But we’re here this week and next and, though there may be a little less to talk about on the numbers front, there’s still a bit going on. Anyway, apropos of nothing in particular, I recently read Puckoon by the inimitable Spike Milligan. He had ‘I told you I was ill’ (albeit in Gaelic) transcribed on his gravestone and that, in life, where you don’t get enough practise to make you perfect, ‘I’ll get it right next time’ would be similarly appropriate. 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 PUBS & RESTAURANTS: Evolving clientele: Over a quarter of office sales in London have been made by buyers intending to convert the buildings into hotels, according to data from Costar shared with City A.M., indicating a potential lifeline for the city’s struggling commercial property market. This will clearly herald a change in footfall, clientele etc for hospitality operators with units in or around the same location… • 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 – reduced hours. Research by The Daily Mirror suggests that publicans are resorting to ‘drastic measures to stay afloat’. The BBPA reports 32% of its members have cut hours as a survival strategy, prompting calls for government support to prevent further closures and preserve community hubs…. Other news: Scores of tractors attempted to drive into Central London yesterday in protest against the lack of support for British food production post Brexit. The demo, which was organised by Save British Farming and the Kent Fairness for Farmers group, is calling for an end to a number of post-Brexit trade deals, which they say, give imports an unfair advantage. COMPANY NEWS: Revolution Bars: Following Sky News reports that Revolution Bars was ‘plotting the closure of a quarter of its venues as it holds talks with investors about an emergency fundraising and puts itself up for sale,’ Revolution has updated the Stock Market today saying that it ‘is actively exploring all the strategic options available to it to improve the future prospects of the Group.’ Revolution says these ‘include a restructuring plan for certain parts of the Group, a sale of all or part of the Group and any other avenue to maximise returns for stakeholders. The Company also confirms it is currently engaged with key shareholders and other investors including Luke Johnson in respect of a fundraising.’ It says that, at the moment, ‘the Company continues to trade in line with management’s expectations’ and it adds that ‘further announcements will be made, as appropriate….’ • 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. Fever Tree FY numbers. Fever Tree has reported numbers to 31 December saying that revenue rose by 6% to £364.4m with adjusted EBITDA down by some 23% at £30.5m. The company reports PBT of £22.2m, down from £31.0m last year and adds that EPS is down by 38% at 13.2p, The company will pay a dividend of 16.64p, up 2% on 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. AG Barr has reported full year numbers to 28 January saying that revenue rose by 25.9% to £400m with PBT up 15.5% at £51.3m. The company reports basic EPS up by 13.5% at 34,6p and it has raised its total dividend for the year by 14.9% to 15.05p…. • Re the outlook, AG Barr says ‘having seen continued positive brand momentum in the early weeks of the new financial year, we remain confident in our strategy and the continued delivery of revenue and profit growth in the year ahead.’ • CEO Roger White says ‘with our business in a strong financial position, and our portfolio of differentiated brands poised for further growth, I have every confidence that our proven strategy, our results-driven teams and our well-invested asset base will continue to support long-term growth and value creation. Arc Inspirations’ recent £7m fundraising will fuel plans for four new openings annually over the next five years and fund refurbishments for existing sites. The investment comprises a £4m loan from HSBC UK and a £3m equity injection from shareholders. The Banyan and Manahatta operator has upcoming launches in Edinburgh, London, Liverpool, and Cardiff…. Heartwood Collection, backed by Alchemy Partners, has purchased The Prince of Wales pub in East Barnet from Stonegate, as Heartwood targets over 60 inns and brasseries by June 2027. The Prince of Wales will undergo a multi-million pound refurbishment to preserve its historical significance and enhance community engagement. Per Propel, Black Sheep Coffee is considering an IPO to raise £15m for international expansion. With 83 stores in the UK and presence in the UAE and France, the company aims to kickstart its US expansion with 15 stores , focusing on Arizona and Georgia alongside its Texas and Florida ventures. KERB, the street food market operator, is expanding internationally with its first venue in San Francisco next month, followed by openings in Copenhagen and Berlin. KERB’s profitability surged in 2023, with gross sales reaching £23.5m, attributed to increased event trade, serving over 900,000 guests and generating nearly £8m in revenue for members. HOLIDAYS, HOTELS & LEISURE TRAVEL: The FT reports Merlin Entertainments plans to implement dynamic pricing, or surge pricing, at its top attractions by 2024, with major US sites to follow in 2025. While the owner of Legoland and Madame Tussauds reported record revenues of £2.1bn in 2023, visitor numbers have yet to return to pre-pandemic levels, with 62.1 million customers compared to 67 million in 2019…. • 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. Amex GBT, the world’s largest travel management company, has agreed to acquire rival CWT for $570m, aiming to capitalise on the global recovery in business travel…. OTHER LEISURE: 888 Holdings has reported full year numbers to end-December saying that revenue rose by 38% to £1.71bn with adjusted PBT down by 25% at £48.1m. The company reports a loss after tax of £56.4m (last year loss £120.6m). 888 reports adjusted EPS of 10.7p (down 29%) and there is no dividend….. • 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. Flutter has reported full year numbers to end-December saying that revenue came in up 24.6% at US$11.8bn with a net loss of US$1.2bn (2022: loss US$370m). The company reports adjusted EPS of 351c (2022: 279c) and there is no mention of a dividend…. • 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. FINANCE & MARKETS: Senior economists at KPMG predict that the Bank of England will reduce interest rates to 3% by the end of next year, aiming to support mortgage borrowers as inflation drops below the Bank’s 2% target due to falling energy bills. Job market data from Adzuna suggests signs of recovery, with the number of vacancies showing a smaller decline in February compared to previous months. Sterling mixed at $1.2645 and €1.1653. Oil higher at $86.69. UK 10 year gilt yield up 6bps at 3.99%. World markets mixed yesterday with London set to open down around 20 points as at 6.30am, RETAIL WITH NICK BUBB: Nick is taking a well-earned short break. He’s back on Tues 2 April. |
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