SSP Group, Costa Coffee, MAG, services sector, Budget & other:

A DAY IN THE LIFE:

I think our dog has superpowers because I’d swear that she can hear food on a plate.

Not hear it being put on a plate.

Or see it or smell it when it’s there already but rather simply hear – or know via some other means – that it’s there already.

Because she’ll ignore everything when there’s work to be done or all kinds of commotion at other times but, if things are calm but food is around, she’s back on the ball before you can say din-dins.

And I know food on a plate doesn’t make much of a noise so maybe it’s a routine or a change in attitude or a word you may have spoken that implies food, nourishment, nutrition or whatever, her lexicon seems to be endless when it comes to that particular subject.

Anyway, enough of that. The dog needs feeding so let’s move on to the news:

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PUBS & RESTAURANTS:

UK services sector:

The services sector is large & diverse. Nobody would suggest that B2B businesses, lawyers, accountants, banks etc., have much in common with B2C operators such as hospitality, leisure and retail, but the data gets lumped together. Nonetheless, S&P yesterday released its November PMI for the UK’s services sector, saying that ‘November data highlighted a slowdown in business activity growth across the UK service economy amid weakening demand conditions and fragile client confidence.’ Other surveys have found that consumer-facing businesses have performed much less well than those offering professional services and we believe that the same it true here…

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Hospitality & the Budget.

The British Institute of Innkeeping has released the results of its flash survey following the Chancellor’s budget announcement last week, saying that ‘the devastating impact of broken promises [risks] destroying the pub sector.’ It says that only 1-in-3 respondents to its survey ‘are currently profitable, thanks in the main to the previous budget in October 2024, which delivered huge increases in Employer NICs, Minimum Wage and the doubling of business rates bills as the relief was slashed to 40%….’

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Other news:

Waitrose has said that pork is growing in popularity with beef on the wane, largely as a result of price.

SSP GROUP – FULL YEAR NUMBERS:

SSP reports FY revenue up 7.8% (at constant currencies) at £3.64bn. Operating profit is up 12.7% (at constant currencies) at £223m and PBT on an underlying basis is £172.3m against £157.0m in the prior year. Underlying EPS is 11.0p (FY24: 8.1p) and the dividend for the full year is up 20% at 3.50p. The group reports non-underlying charges of £183m, of which, some £116.8m relates to impairments. The remainder includes IT transformation costs at £33.4m, restructuring costs of £12.7m and site exit costs of £13.8m. SSPG reports net debt, at 1.6x EBITDA, has ‘improved from 1.7x last year’ and is ‘at the lower end of 1.5-2.0x guided range.’

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COMPANY NEWS:

Ian Bull, chair at Domino’s Pizza Group, has purchased 20,000 shares in the company at £1.7244, or around £35k.

JDW has this morning announced that it has bought for cancellation 350k of its own shares at 699.8p at a cost of £2.45m.

Heineken reports on the ‘growing cultural shift towards choice and moderation’ when it comes to the attitude of consumers to alcohol. It maintains that it ‘continues to lead the way in the 0.0 category.’

Monster Beverage Corp in the US has reported record net sales in its Q3. It says that some customers are switching over to soft drinks from coffee, largely due to the growing price differential…

Just Eat Takeaway reports that, re November, which it calls ‘Black Friday Month’, sales and orders were at record levels.

Fuller, Smith & Turner, has announced that The Coach & Horses, Soho, is the 2025 winner of its Pub of the Year competition.

Coca-Cola owned Costa Coffee, which is currently for sale, has reportedly signed a new agreement with Emirates Leisure Retail to extend their long-term partnership on franchising Costa stores outside the UK until 2040….

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HOLIDAYS & LEISURE TRAVEL:

Manchester Airports Group has reported H1 numbers saying that PBT rose to £144.6 million in the six months to September 30, up from £139.6 million in the previous year. Revenue was up by 10.5% to £850.6 million and total passenger numbers were up by 1.9% to a new record of 38 million.

Politics and travel. Hotel bookings by Chinese guests in Japan are reported to be running between 50% and 70%, per Asia Business Daily.

OTHER LEISURE:

Administrator at Sheffield Wednesday, Begbies Traynor, has said that six bidders are in the running to buy the club. A combination of several of the bidders coming together to make the purchase is possible.

Sky News reports that hundreds of UK online safety workers at TikTok are to leave the company. It says that they have already signed agreements to that effect but whistleblowers have told it that signatories have been asked to hand in their laptops and had access to their work systems revoked.

FINANCE & MARKETS:

S&P’s composite PMI reading for November has come in at 51.2 for the month, down from 52.2 in October. This ‘signalled only a marginal expansion of business activity.’ Nonetheless, S&P reports that ‘the index has registered above the 50.0 no-change threshold in each month since May.’

Sterling up at $1.3338 and €1.1439. Oil higher at $62.96. UK 10 year gilt yield down two basis points at 4.44%. World markets heading better yesterday and London set to open around 34 points higher as at 6.30am.

RETAIL WITH NICK BUBB:

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