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PFD, EZJ, GYM, Deep Blue, BrewDog, hospitality jobs & other:

A DAY IN THE LIFE:

We used to have a kitchen where, if I swayed from side to side, which I did quite often back in the day, I could bang both elbows on opposite walls at almost the same time.

You couldn’t swing a cat. In fact, you couldn’t turn around, it was, to be honest, cramped.

And, when you ask for synonyms thereof, you get pretty accurate words like ‘restricted’, ‘confined’, ‘narrow’, ‘uncomfortable’ and ‘sparse’ or, and this is my particular favourite, ‘inadequate’.

But the estate agent must have used a very different synonym-search programme as I’m sure it was described to us as ‘bijou’.

Or maybe it was a ‘galley kitchen.’ It was ‘compact’ and ‘cosy’, a space where everything, including all four walls, were ‘conveniently located’ within arms’ reach.

Anyway, enough of that, it’s the weekend. And the weather’s not too bad so, have a good one and let’s move on to the news:

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PUBS & RESTAURANTS:

Hospitality jobs:

The Times reports HMRC data shows that ‘jobs at pubs, bars, hotels and supermarkets have contracted at the sharpest pace in recent history since Rachel Reeves’s budget in October, at which she announced that employer national insurance contributions (NICs) would rise by £25 billion from April….’

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Other news:

Ireland: The UK is not alone in that a study, commissioned by the Drinks Industry Group of Ireland has reported that around a quarter of Ireland’s pubs have closed in the last 20 years. It goes on to say that a further 1,000 units remain at risk ‘without government intervention….’

COMPANY NEWS:

BrewDog. FT Alphaville comments on BrewDog saying that ‘all the shares sold to retail investors, the 130,000 so-called “Equity Punks”, will probably be worthless unless a generous buyer suddenly appears for the lossmaking BrewDog….’

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Deep Blue Restaurants Ltd, which owns and operates the Harry Ramsden’s chain of fish & chip shops amongst others, has reported results for the year to 24 Sept 2024 to Companies’ House. The company reports that it ‘is the largest operator of Fish & Chips restaurants and takeaways in the United Kingdom.’ Headline numbers: The company reports turnover down by 9.8% at £22.9m. It reports GP% up to 69.2% from 66.9% but the absolute level of gross profit down due to lower revenues. Admin costs have been well contained (down by 14%) and, though interest costs have risen to £1.4m from £1.1m, the loss before tax has been reduced to £2.23m from £3.64m in the prior year. The company focuses somewhat higher up the P&L and reports that EBITDA has risen to “3.19m from £2.12m in the prior year….

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Wasabi. The Telegraph quotes Wasabi CEO Henry Birts as saying that NIC increases go against its pro-growth agenda. He says there is too much red tape and cost and adds ‘we’re at risk of sort of really killing the industry if we continue to regulate and regulate and put the costs up. All of this together is having a collective effect that is just not helpful.’

PepsiCo yesterday reported better-than-expected Q2 numbers despite some soft North America sales. Revenue in the quarter rose by around 1% to $22.7bn but net income fell 59% to $1.3bn. The group’s shares rose around 2% in pre-market trading.

President Donald Trump says on Truth Social that he has been ‘speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so.’ Coke said they ‘appreciate President Trump’s enthusiasm.’

Pretzel brand Auntie Anne’s is reported to have opened eight stores in the last calendar year to take its total to 41 units. The group is now up to 44 sites. UK & Ireland MD Max Burton says ‘in a challenging retail climate, we’re entering a transformational chapter for the brand.’

PREMIER FOODS Q1 UPDATE – CONFERENCE CALL:

Following the release of its Q1 trading update, Premier Foods hosted a conference call for analysts and our comments thereon are set out below:

Headline comments: Branded sales are up 1.2% (Sweet Treats up, Grocery down in the hot weather). Market share has grown in both volume and value share. The comps were tough and the performance has been ‘very encouraging’. Sweet Treats has ‘had a really great quarter’. Sales were up 11.4% due both to new product innovation and growth in existing product sales. The ‘breakfast offer is being expanded.’ Grocery sales are down 2.7% against tough comps and with unhelpful weather. Branded sales are ‘lower’ but, with unbranded down 8.8%, this should have been limited. The weather impact will be temporary and the ‘group is on a journey to reduce its seasonality.’ This ‘does not knock the company off track’…

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HOLIDAYS & LEISURE TRAVEL:

EasyJet is to set new targets for its holidays business after the division turned in another strong quarter in calendar Q2. easyJet holidays made a profit of £86n in Q2, up £13m or so on the prior year. The company says ‘easyJet holidays’ continued strong performance is expected to deliver >£235 million PBT in FY25, meaning a new medium-term target will be set towards the end of this year…’

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The RAC has reported that over half of the UK’s busiest airports have raised “kiss-and-fly” fees for cars. It says that 11 out of 20 UK airports had raised prices since last July, with Gatwick, Bristol, Leeds Bradford and Southampton joining Stansted in charging the top rate of £7 to park for just a few minutes.

Property and hotel group BH Group has purchased five properties from Coast and Country Hotels.

OTHER LEISURE:

Netflix yesterday beat Wall Street’s expectations for Q2 revenues when it said that it generated sales in the quarter of some | $11.08 billion, up 16 per cent on the prior year. Net income rose by 8.1 per cent to $3.1 billion vs expectations of $3 billion. The shares were slightly lower in after market trading…

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Gym Group yesterday launched a placing whereby Blantyre Special Situations Fund I was able to place approximately 5% of the company’s issued share capital. Gym Group reported later in the day that the placing of some 10.03m shares, or 5.6% of its share capital, had ‘been placed with institutional investors and family offices at a price of 140 pence per share.’ The group’s shares opened yesterday at 154p…

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The FT reports that ‘Apollo Management has lent £80mn to Nottingham Forest Football Club in expensive debt to allow it to pay off other liabilities, in the private capital firm’s first known foray into English Premier League football.’ It reports that ‘the US group in December provided a three-year term loan at an annual interest rate of 8.75 per cent, according to corporate filings.’

regulation, putting Keir Starmer on a potential collision course with some of the party’s largest donors.’

How many is enough? City AM reports that Great Britain now has over 1,000 padel courts as the racket sport booms in popularity across the capital and beyond….

FINANCE & MARKETS:

The ONS yesterday (see Thursday’s email) reported that the UK unemployment rate rose to a four year high. Though unpleasant for those impacted, it perhaps makes an interest rate cut when the Bank of England next meets on 7 August, that bit more likely.

Jaguar Land Rover has announced that it is to cut up to 500 management jobs in the UK. US tariffs have done the company no good.

President Donald Trump is now saying that it is ‘highly unlikely’ he will fire US Fed chair Jerome Powell. He can only fire Mr Powell ‘for cause’ (not for policy differences) and it may be that no such cause exists.

Sterling higher at $1.3423 and €1.1554. Oil higher at $69.84. UK 10 year gilt yield up 3 basis points at 4.67%. World markets better yesterday and London set to open around 26 points higher as at 6.30am.

RETAIL WITH NICK BUBB:

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