Tortilla, Nichols, McDonald’s, Pepsi, Getir, Alphabet, tips, trading & other:

A DAY IN THE LIFE:

In the same way that a so-so golfer will stand and marvel when he makes an occasional good shot, , indeed he may well catch flies in his mouth while doing so, I couldn’t help trying to do a mental victory lap yesterday when I finally got our accounts put into the FCA.

This was hours, mind, many hours ahead of the deadline.

Which is today and, though there wasn’t a crowd there to give me much of a clap, I did pat myself on the back before shovelling the untidy heap of invoices, sales summaries and the like that had been fleetingly pulled into some sort of order back into the deep, dark drawer from which they had emerged.

So, job done.

And immediately forgotten, at least until the next time and not a care in the world, other than a raft of sundry admin and the wages and the VAT, both of which need doing next week.

Oh, joy. On to the news:

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PUBS & RESTAURANTS:

Service sector activity:

Better flash PMI numbers suggest a) a definitive move out of recession in Q1 (and into Q2) and b) that inflation could pick up again…

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Tipping policy:

Industry bodies have continued to broadly support delays to changes in the way that tips have to be handled. Emma McClarkin, Chief Executive of the BBPA, has welcomed the clarification of elements in the final version of the Code of Practice on tips legislation….

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Cost of living issues:

Mortgage costs and petrol on the up, food price inflation continues to abate. Lenders including NatWest, Barclays, and Leeds Building Society, have raised their rates on fixed-term loans leaving many homeowners potentially facing higher monthly payments….

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COMPANY NEWS:

Tortilla Mexican Grill has reported full year numbers to 31 December saying that it has seen ‘continued profitable sales growth achieved against a turbulent economic backdrop with current trading in-line with expectations.’ The company reports revenues up by 14% to £65.7m with LfL sales up 3.6% or, as the company reports, ‘equivalent to 4.9% growth when adjusted for the Q1 VAT benefit from 2022.’

Tortilla reports adjusted EBITDA up 16% at £4.6m with a loss before tax of £1.1m against a loss in the prior year of £0.9m. the group reports a loss per share of 2.8p (2022: loss 1.7p) and Tortilla reports net debt at the year end of £1.3m (2023: debt £0.6m)….

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Soft drinks company Nichols has updated on Q1 trading ahead of its AGM, which will be held later today. The company reports that ‘trading in 2024 has started in line with management expectations reflecting the Group's continued strategic progress. Strong growth in the UK Packaged business was offset by an anticipated decline in International revenue due to the phasing of shipments and strong prior year comparatives as well as the continued successful rationalisation and focus on profitability in the Out of Home business. As a result, Group revenue decreased 5.9% year-on-year to £38.8m…

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Sky News reports that ‘investors in Getir, the grocery delivery app which at one point attained a valuation of almost £10bn, are to inject yet more money into the company to fund its exit from the UK and Europe….’

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PepsiCo Inc yesterday reported Q1 numbers ahead of expectations. Volumes dipped in North America but the brand performed strongly elsewhere…

Matteo Fantacchiotti, the new CEO of Davide Campari-Milano, is prioritising the expansion of the company’s presence in the Asian market, aiming for it to account for 15-20% of global sales within the next 5-10 years. While Asia currently represents only 8% of Campari's sales, it was the fastest-growing region in the company's 2023 financial year.

Coffee chain Grind has expanded its retail presence through a new partnership with Tesco as a part of the Tesco Accelerator programme. Additionally, Grind aims to further develop its retail business following the acquisition of Bottleshot Brew Ltd in March 2023, which led to its entry into major grocers like Waitrose.

HOLIDAYS, HOTELS & LEISURE TRAVEL:

Jet2 has updated on trading for the year to end-March saying that ‘following the trading update in mid-February, the Board now expects to report a Group profit before foreign exchange revaluation and taxation for the year ended 31 March 2024 of between £515m and £520m (previously £510m to £525m), an increase of approximately 33% on the prior year and in line with current market expectations…’

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Suspected Russian jamming of GPS systems has caused disruptions to flights in and out of Britain, with over 2,300 incidents reported by Ryanair since last August and almost 1,400 by Wizz Air. British Airways and easyJet have also been affected, raising concerns about safety as GPS interference poses a risk to aircraft navigation.

CoStar reports that new hotel development has been declining globally. It says that March data shows that the Americas was the only region that overall saw year-over-year increases in activity….

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NH Hotel Group, part of Minor Hotels since 2018, will now be known as Minor Hotels Europe & Americas. The renaming reflects Minor Hotels' focus on integration and expansion, with plans to open around 50 new properties in Europe.

OTHER LEISURE:

Spotify yesterday reported quarterly numbers saying that it had generated operating income of €168m in Q1 against a €75m loss in the prior quarter. Spotify said that operating income in the present quarter should be around €250m. The company, which has recently been cutting costs via redundancies, reported that the number of its premium subscribers rose by 14 per cent to 239 million…

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The US Senate has passed a bill that could see TikTok banned in the US. The bill will now go to President Joe Biden, who has said he will sign it into law as soon as it reaches his desk.

Tesla yesterday reported a fall in quarterly revenue for the first time since 2020. The company delivered fewer electric vehicles to customers in the quarter due to slowing demand and increased competition. Tesla shares were up some 11% in late trading.

PureGym plans to open new gyms following the successful launch of 40 sites across the UK in the past year, despite ongoing economic challenges. With further plans to open 200 gyms in the UK and Switzerland over the next few years, PureGym's CEO expressed confidence in the company's growth trajectory, particularly highlighting the strong performance of recent openings.

FINANCE & MARKETS:

Flash PMI numbers for April yesterday from S&P featured the composite number rising to 54.0 from 52.8 in March. The Services PMI rose to 54.9 from 53.1 in March but Manufacturing slipped from 50.3 to 48.7…

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Researchers at the Centre for Policy Studies report that the regulatory burden placed on businesses has risen by £6bn a year under the Conservative government. The CPS says this despite promises to shrink the regulatory red tape imposed by the state.

Higher than anticipated borrowing for the financial year to end-March will likely limit the Chancellor’s scope for tax cuts. Should cuts still be found, there will likely be allegations of a scorched earth policy ahead of an election in which the Conservatives are likely to come second (or maybe third. Or even fourth).

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