DP Poland, Blackpool Pleasure Beach, costs, demographics & other:

A DAY IN THE LIFE:

I’m not particularly afraid of spiders, wasps or (small and non-poisonous) snakes.

Or mice, for that matter.

Basically, anything I could tread on or run away from isn’t going to get my pulse racing but what I am afraid of is people asking me to be honest.

Not that honesty isn’t my default position.

Because it is, but what I mean is people asking me to be honest about their baby, their clothes, hairstyle, taste in music or PowerPoint presentation, that sort of thing.

You know the kind of inescapable corner you can end up in if you say something like ‘yes, wonderful, but…’.

It can land you in more bother than is decent on a sunny Friday.

And if you say ‘…but is it meant to look like that?’ you’re sunk and with the advice that the above is truly best avoided, let’s move on.

Have a great weekend, good luck to the Mighty Hull City at home to Luton tomorrow and here’s the news:

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DP POLAND – ACQUISITION CONFERENCE CALL:

Following the announcement that DP Poland was to purchase Pizzeria 105 for £8.5m in cash, the company hosted a conference call for analysts and our comments thereon are set out below.

Financial synopsis:See also earlier Flash Note. DP Poland says it is making an acquisition of a geographically complementary business. Pizzeria 105 is completely franchised and DPP says that transitioning c70% of the 90 units to its own flag should be straight forward. The purchase moves DPP into a strong number 2 position in the pizza market in Poland. The group will surpass 200 units in early 2027 and it should have 220 or so by end-2027. This will massively accelerate the move towards being a largely franchised business, it derisks expansion for a number of years (as most new units will be conversions) and there are synergy benefits.

Revenue & cost synergies: Average weekly orders at Pizzeria 105 are c530. DPP units were here several years ago and, as the P105 units are capable of it, a move towards 900 should be possible. P105 has 70 franchisees, several of whom run a number of units. DPP’s existing units could be taken over by such operators. The move consolidates the Polish market and will increase commissary utilisation. The enlarged company will create a bigger marketing pot and TV advertising (as the expanded group will have a more comprehensive footprint) may be undertaken. Cost synergies are a useful but more modest c£0.6m from end-2026 onwards.

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PUBS & RESTAURANTS:

Demographics

There does seem to be some agreement across analysts and lobby groups that the Spring Statement and its associated benefit cuts, will disadvantage some lower-income demographics more than they will their financially-better-off peers. The Resolution Foundation says that, over the next five years the average income across the poorest half of working-age households is projected to decline by 3%, or £500. This will clearly impact those hospitality operators exposed to impacted consumers…

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Costs:

Whilst Easter Egg purchases are hardly essential, the fact that prices are reported to be up by some 50% on last year’s levels does bring home just how much the commodity has risen in international markets…

Jobs market:

Whilst unemployment remains at relatively low levels, notable yesterday that both British Steel and Sky reported a number of jobs now ‘at risk’…

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Other news:

Low confidence in the food & drink industry. The Food and Drink Federation has reported that confidence amongst its members has fallen sharply in the face of rising costs and regulation. Some 57% of businesses told the body that they were seeing trading conditions deteriorate.

Safeguarding (customers). The Night Time Industries Association is ‘urging the Safeguarding Minister and local authorities to move beyond outdated, performative approaches to safety and commit to real cultural change in safeguarding within the night-time economy.’ It says ‘regulatory strategies that rely on enforcement-led, box-ticking measures fail to address the root causes of harassment, spiking, and other serious crimes, leaving venues and patrons vulnerable….’

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Spring statement. Complaints continue as The Night Time Industries Association says ‘with crushing tax hikes set to take effect in April, the night-time economy now faces a worsening crisis that threatens widespread closures, mass job losses, and economic stagnation….’

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COMPANY NEWS:

The MCA reports that Portobello Pub Company has completed a review of its options, and “despite receiving multiple offers” has decided to continue with its existing growth strategy….

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Street food collective company KERB has reported revenues of £32.2m in 2024, up 37% on the £23.5m generated in 2023…

JDW yesterday spent £1.2m buying back for cancellation some 217,668 of its own shares at 559.5p per share.

HOLIDAYS & LEISURE TRAVEL:

Blackpool Pleasure Beach Ltd, which was incorporated in 1984, has reported full year numbers to 24 March 2024 to Companies’ House. Trading – numbers: The company reports revenues up by a fraction of a percentage point to £37.3m (2023: £37.2m) with gross profit down by around 9% at £11.2m. The GP% margin fell to 30.1% from 37.0% in the prior year. Admin costs have been reduced slightly at £12.7m (2023: £12.9m) and other income is up sharply at £0.7m from £0,2m in the prior year. The company made an operating loss of £0.8m against an operating profit of £1.1m in the prior year. Net interest payable is up and the group reports a loss before tax of £1.7m (2023: profit £0.3m). The group did not pay a dividend for the year (FY23: nil)….

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The latest Hotel Guest Survey from BVA BDRC reports that Premier Inn, Hilton Hotels & Resorts and Holiday Inn have retained a brand advantage in the market…

The Civil Aviation Authority is to review its rules on ‘resilience’ following last Friday’s fire that put Heathrow out of action for the day.

Regarding Heathrow’s proposed third runway, the CAA says it will it will aim to provide ‘strong incentives for the efficient delivery of the substantial costs involved in expansion and how to best protect the interests of consumers.’

BCD Travel has reported that Amsterdam was the top short-haul destination for European business travellers in 2024. New York was the most-visited long-haul city.

OTHER LEISURE:

IT investor Tencent has invested €1.2bn into a spin-off from Ubisoft, the maker of the Assassin’s Creed video games amongst other products…

FINANCE & MARKETS:

The CBI reports that private sector activity is expected to decline further in calendar Q2…

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Sterling up at $1.2939 and €1.1995. Oil higher at $73.97. UK 10 year gilt yield up 8 basis points to 4.79%. World markets mostly lower yesterday and London set to open up around 12 points lower.

RETAIL WITH NICK BUBB:

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