RedCat, Comptoir, Starbucks, Vagabond, Disney, trading, travel & other:

A DAY IN THE LIFE:

It was brought home to me the other day that the word ‘after’ is being used as a synonym for ‘because’ or even for the words ‘as a direct result of.’

And that’s fine in some situations but less so in others.

It’s perfectly acceptable, for example, if you’re saying ‘the company / government collapsed after a series of disastrous management / cabinet decisions.’ Or ‘the bank pulled the plug after the company reported yet another year of losses’ but it’s very misleading – though still 100% correct – when used in other ways.

For example, ‘the Germans lost the war after Mrs Miggins dropped a meat pie in Ealing’. Or ‘the Mighty Hull City thumped Cardiff City 3-1 after a certain York resident decided to pop down the pub for a cheeky pint’ because, whilst both of the above things happened – or may well have happened in the case of Mrs Miggins – there wasn’t, unless you have a very warped view of these things, any causality whatsoever.

Indeed, if Hull City could be guaranteed to score three goals for every pint downed on a Saturday afternoon, both they and the aforementioned York resident would be very happy but, unless I’m very much mistaken, that’s not going to happen.

Anyway, it’s another one of those interminable five-day weeks so, without further ado, let’s move 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

PUBS & RESTAURANTS:

Trading:

CGA’s latest Daily Drinks Tracker, which covers the pre-Easter week to 23 March, suggests that drink sales in managed houses were up 1% in the week (after gains of 1% in the week prior and 5% in the week before that). CGA says ‘pubs and bars took advantage of St Patrick’s Day falling on a Sunday (17 March) this year, and sales were 13% ahead of the equivalent Sunday 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.

Travel disruption:

UKHospitality estimates that strikes in 2024 have cost businesses close to £750m in lost trade. Trade union ASLEF announced a rail driver strike on April 5, 6 and 8, including a six-day overtime ban which will affect 16 rail companies, which is estimated to cost the hospitality sector £387m….

• 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.

Food prices:

OECD data has suggested that ‘food inflation across rich nations has dropped to its lowest level since before Russia’s full-scale invasion of Ukraine, with a slowdown in price growth easing pressure on millions of households hit by the two-year surge in food costs’ reports the Financial Times…

Employment issues:

Comments from KPMG and the Recruitment and Employment Confederation on the UK employment market in the three months to March suggests that starting pay levels are beginning to moderate. The report concludes that starting pay for temporary workers fell to to its lowest point in four months. More workers were available and there were signs of businesses cutting back on hiring amid economic uncertainty….

• 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.

Other news:

Fresh v cask debate. Carlsberg Marston’s Brewing Company (CMBC) clarifies that its ‘Fresh Ale’ won’t replace cask ale but aims to reinvigorate the category, despite concerns raised by CAMRA regarding potential breaches of consumer protection legislation….

Accountancy firm Mazars has reported that the number of retail insolvencies is up sharply as a result of tough trading and cost increases. The firm reports that some 2,195 retailers collapsed in the year to the end of January, up 19 per cent compared with the year before. Mazars says the industry has been impacted by a ‘combination of increased costs and cautious household spending among consumer.’

Ofgem is to introduce measures to limit the ability of energy brokers to impose charges after complaints from a number of industry bodies. UKH had written to Ofgem calling for action to stop hidden charges from driving up bills.

COMPANY NEWS:

The Redcat Pub Company, which announced that it was placing parts of its business in administration and was selling a number of other sites late last month, has reported numbers for the 52-weeks to 2 April to Companies’ House saying that revenues almost doubled to £120.5m (2022: £62.8m) but losses widened from £3.2m in the prior year to £31.0m in the year under review. The company, which is chaired by former Greene King CEO Rooney Anand, made an operating loss (after amortisation and exceptional items) of some £15.7m. It charged £11.1m in finance charges to the P&L and it records a ‘revaluation deficit’ of £4.1m…

• 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.

Comptoir Group has announced the first opening of one of its restaurants in Abu Dhabi. A new Shawa restaurant will open at the country’s Zayad International Airport to provide ‘a convenient food-to-go option’. Comptoir CEO Nick Ayerst says ‘we have long recognised Abu Dhabi’s importance as an international air hub and are delighted to share Shawa’s offering with international travellers.’

Cake Box has updated on trading for its year to end-March saying that it ‘entered the second half with increasing momentum as the Group continued to deliver on its stated strategy’. The company reports that it ‘expects to report revenues for the year up c9.0% year on year (FY 2023: £34.8m)’. it says it ‘continues to balance cost control whilst investing in its growth areas’ and, as a result, reports that it ‘expects to report adjusted profits slightly ahead of market expectations…’

Starbucks is reported to have paid only £7.2m in UK corporation tax last year despite making gross profits, albeit before ‘administrative expenses’ of around £149m on sales of £548m in the UK….

• 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.

Martin Wolstencroft, CEO at Arc Inspirations, tweets ‘many pubs, bars, and restaurants that are the heart of communities will be closing due to the unfair costs they are facing through no fault of their own’….

Majestic has successfully completed the acquisition of Vagabond wine bar chain, securing the future of nine venues and 171 workers. While some sites, including the underperforming Canary Wharf location, will be closed, Majestic plans to invest in expanding the brand and opening new wine bars across the UK….

HOLIDAYS, HOTELS & LEISURE TRAVEL:

Britannia Hotels has reported full year numbers to end-March 2023 to Companies’ House saying that revenue rose by 31% to £154.79m with profits before tax up by 18% at £39.37m.

Travel Supermarket has reported that around 30% of searched for family holidays on its website are for periods during term time. Travel Supermarket CEO Richard Singer says ‘families in the UK face a parent trap. Not only does supply and demand push up holiday prices during school holiday times, but APD rises and the cost-of-living crisis are all compounding to punish families with school age children’.

A strike by Border Force officers at Heathrow, due to start this week, has been suspended.

Travel Weekly reports that Viking Cruises’ parent company has filed for an initial public offering in the US.

Travel Weekly reports travel industry professionals are anticipating a potential “second peak” in bookings as families delay planning overseas holidays. Factors such as economic pressures and uncertainty have led to families waiting for last-minute deals, prompting operators to adjust pricing and offer incentives like free child places to entice bookings.

OTHER LEISURE:

Disney+ will implement a crackdown on password sharing starting in June in select countries, with a global rollout planned for September, according to CEO Bob Iger. The move follows a similar initiative by Netflix last year and aims to prevent users from sharing login details across different households.

The Sunday Times has suggested that PE house Apollo is mulling a breakup bid for Ladbrokes owner Entain. It says ‘the gambling giant resisted two bids and then rode high, before a scandal brought it crashing back to earth. Now, amid board upheaval, another bid may beckon.’

Torquay United, which is currently in the National League South, is reported to have gone into administration. Begbies Traynor will handle the administration.

FINANCE & MARKETS:

Research by accountancy firm BDO has suggested that the UK has emerged from its brief Q4-2023 recession already. Data elsewhere has been signalling this for some time….

• 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.

In March, US Nonfarm Payrolls (NFP) increased by 303,000, surpassing market expectations of 200,000….

• 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.

In March, house prices in the UK fell by one percent, following five consecutive months of increases, according to Halfiax’s HPI…

Calastone reports UK equity funds saw outflows surge to £823m in March, their worst month since February 2023 making March the 34th consecutive month to see net selling. Q1 outflows of £2.13bn made for the fourth worst quarter for UK equity funds on Calastone’s record. Meanwhile, North American funds absorbed a record £5.72bn of UK investors’ capital in Q1, as the advent of AI drives investors’ funds to the region.

Construction PMI. S&P reports that its construction PMI measure rose from 49.7 in February to 50.2 in March. This implies growth for the first time in six months…

• 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 latest House Price Index from lender The Halifax Building Society has suggested that house prices fell by 1% month on month in March. House prices remain some 0.3% higher on a year on year basis….

Sterling mixed and very little changed at $1.2629 and €1.1656. Oil lower at $89.92. UK 10yr gilt yield up 6bps at 4.08%. World markets down (but heading better) on Friday & Far East up in Monday trade. London set to open up some 12 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.