PREMIUM – ROO, FSTA, CCR, outlook, franchising, brands, costs & other:

A DAY IN THE LIFE:

I don’t want to become the man that stands on the pavement shouting at traffic and glaring at pedestrians but, just one little thing, when did buns become cup-cakes?

It’s bad enough that the toilet now a washroom (or a bathroom, even when it isn’t) and the noble, history-rich two-fingered gesture has been usurped by something altogether more graphic but, when you interfere with my food, things are getting real.

Still (says referring to para.1 above), maybe evolution is inevitable as is convergence of one sort or another in an era of instant and global comms, particularly when your branch of a language is no longer the primary source.

So, I’ll diss it no more. I may even have to say I’m loving it.

Congrats to the resurgent Hull City, who extended their not-losing streak to three matches last night. On to the news:

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PUBS & RESTAURANTS:

UK Business Outlook

S&P yesterday published its February UK Business Outlook saying that ‘UK firms expect to shrink workforces over the rest of 2025 amid gloomy outlook for profits and activity.’ It says that ‘concerns about weak demand sent projections for output growth and profits tumbling’ with expectations turning negative ‘for only the second time in over 15 years, the first being in June 2020….’

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Brands:

Meaningful Vision reports that international brands dominate the UK & Ireland quick service restaurant market in terms of market share. Meaningful Vision says that such ‘brands account for more than half of the market share in the UK and Ireland [some 51% in terms of visits, 49% in terms of number of outlets]; however, local players proved to be excelling in certain segments, which could mean a growing preference for local offerings…’

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Spending trends:

Finance fintech Revolut has shared some of its spending date giving an insight into the spending habits of its predominantly younger customers. Revolut points to a spending increase in the month of February with increased activity across home renovation purchases, takeaways and indoor entertainment…

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Franchising:

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DELIVEROO – FULL YEAR NUMBERS:

Deliveroo has this morning reported full year numbers to end-December and our comments are set out below:

Headline numbers: Deliveroo has reported GTV up 5% for the year at £7.4bn on order numbers up 2% at 296m. The company reports revenue of £2.1bn, up 2% on last year with adjusted EBITDA up 52% at £129.6m. The group reports a profit before tax of £2.9m against losses last year of £31.8m. The group reports a headline operating loss of £12.4m (FY23: £43.7m) with positive finance income leading to a profit at the PBT line.

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C&C – FULL YEAR TRADING UPDATE:

C&C Group has this morning updated on full year trading to end-Feb 2025 and our comments are set out below.

Headline numbers: C&C has updated on trading to its February year end saying that revenue will be broadly in line with market forecasts. Revenues ‘are expected to be in line with last year reflecting growth in our Distribution business offset, as highlighted at the interim results, by the impact of the disposal of our non-core soft drinks business in Ireland, the strategic exit of low margin contract brewing volume and softer GB cider sales during the important summer trading period.’ The company edges back estimates at the EBIT line saying that it ‘expects to report underlying EBIT in the range of €76m – €78m.’

It says this is modestly behind targets but the group has effectively recouped the operating profit lost in FY24 and the growth represents a c30% uplift to that year’s results. Margins are up in both distribution and brands and both parts of the business have grown customer numbers. Brands has grown market share in both the on and the off-trades whilst Bulmer is better in the off-trade and slightly down in the off-trade. The company, in common with the sector as a whole, is facing a range of headwinds and numbers are being edged back to around €80m at the EBIT line, marginally up on this year, from earlier numbers around €90m.

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COMPANY NEWS:

Fuller’s has released a business update saying that it has ‘agreed a new £185 million bank facility with a consortium of existing relationship banks’. It says this ‘provides us with significant headroom to pursue further growth through appropriate acquisitions and to enhance returns for shareholders.’ Referring to the potential to buy back its own shares, the company adds that ‘we believe that the current share price of the Company significantly undervalues the business and does not reflect the intrinsic net asset value of our high quality, primarily freehold estate. As such, we are initiating a new share buyback programme, and today announce the intention of acquiring up to one million ‘A’ shares….’

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Cake Box Holdings later yesterday reported the result of its share placing, saying that it had ‘conditionally raised gross proceeds of £7 million by way of a placing of 3,888,889 new ordinary shares of 1 pence each…at a price of 180 pence per Placing Share.’ The company says that the ‘Placing was substantially oversubscribed and was strongly supported by both existing and new institutional investors.’

Imbiba is to invest some £3m into data platform Openr. The company is majority-owned by Azzurri.

HOLIDAYS & LEISURE TRAVEL:

Travel Weekly reports that ‘major agency groups have expressed confidence that a proposed increase in the tourism tax for the Balearic Islands would not negatively impact bookings….’

Inspire Europe CFO Richard Buxton says that, whilst demand for travel products continues to rise, some suppliers to the industry appear to be nervous enough to demand financial security as bookings rise…

Hull-based caravan manufacturer Atlas Leisure has appointed FRP Advisory as administrators to the company…

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OTHER LEISURE:

Spotify has said that it paid out over $10bn in royalties to the music industry in 2024. This represents around 60 per cent of Spotify’s total revenue.

Music rights and artists company All Things Considered Group yesterday announced the acquisition of a majority interest in Brighton-based music venue, Concorde 2, along with the acquisition of an additional Brighton-based venue, Volks, and associated festival amenities company.’

President Trump has said that people protesting against Tesla should be deemed ‘domestic terrorists’. He says they are ‘harming a great American company.’

FINANCE & MARKETS:

Commenting on what is thought to be the current state of affairs re US tariffs, and these have been moving around a bit, the CBI says ‘the escalating tariff situation in the US remains deeply concerning. ’ It says ‘global players should be leaning into the significant economic benefits that free, fair and open trade can bring.’ The CBI ‘encourages all sides to come to a negotiated solution, and will continue working alongside its sister federations in the B7 to urge the G7 economies to reaffirm their commitment to the rules-based order and work together to tackle shared global challenges.’

The U.S. Bureau of Labor Statistics has reported that US CPI fell to an annual rate of 2.8% in the year to February from 3.0% in January.

RETAIL WITH NICK BUBB:

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