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Mon 24th Apr 2023 - Update: Brighton Pier Group results, Greene King research, tourism tax survey |
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Brighton Pier Group – trading in 2023 has seen a general decline in consumer confidence: The Brighton Pier Group has reported that current total group sales for the first three months to the end of March 2023 were down 11% on a like-for-like basis versus the equivalent period in 2022, with 76% of this shortfall coming from its bars division. The business, which owns and trades Brighton Palace Pier, as well as eight premium bars nationwide, eight indoor mini-golf sites and Lightwater Valley Family Adventure Park, said this decline was predominantly the result of a challenging prior year comparative for its bars business, that continued to benefit from the post-pandemic surge in demand in the early months of 2022. It said: “Notwithstanding, trading in 2023 has seen a general decline in consumer confidence in response to the difficult economic environment currently being faced. These economic pressures, and the resulting impact on both consumer discretionary spend and increased costs, will continue to present significant trading challenges going forwards.” The company said: “While trading has now returned to pre-covid levels, with like-for-like revenues ahead of 2019 equivalents, inflation continues to provide a challenging environment for the group, with wide-ranging cost increases across all four divisions. The resulting economic uncertainty and decline in consumer confidence is expected to continue in the short to medium-term and the group looks ahead with caution. However, despite the continuing cost pressures, all four divisions remain profitable. The group will continue to seek further operational efficiencies in order to mitigate cost pressures to the greatest extent possible. The repayment of £9.1m of debt in the current financial period, will enable the group to remain resilient, further bolstered by a strong balance sheet and asset base. The longer-term strategy continues to be to capitalise on the skills of the group to create a growth company operating across a diverse portfolio of leisure and entertainment assets in the UK. The group will achieve this objective by way of organic revenue growth across the whole estate, together with the active pursuit of future potential strategic acquisitions of leisure and entertainment destinations that could enhance the group’s portfolio, realising synergies by leveraging scale. It is the board’s longer-term strategy to position the group as a consolidator within this sector.” On 19 April 2023, the group extended the term on its £10.9m loan facility by 12 months to 5 December 2024, and over the coming months it said it is looking to re-structure this debt. The intention will be to replace the £10.9m term loan and £1m revolving credit facility with a larger revolving credit facility and a reduced term loan. It said these new facilities will enable it to reduce its interest costs. The business said: “These new bank facilities will provide the group with additional flexibility in meeting its day-to-day working capital requirements and reduce its interest costs by repaying further debt back to the revolving credit facility. Had this extension been agreed at 25 December 2022, the group’s total bank debt of £11.3m would be shown as £0.9m of current debt and £10.4m of non-current debt.” The update on its negotiations with its banks came as the business said it changed its year end from June to December so its results cover an 18-month period and reflect the first uninterrupted trading period post pandemic. It said: “The change of year end date will enable more meaningful comparison of the group’s financial performance going forwards, as it ensures that the typically busy summer trading months are aggregated within a single reporting period.” For the 18 months to 25 December, total group revenue stood at £58.9m (2021: £13.5m), with Ebitda of £13.8m (2021: £4.7m) and pre-tax profit of £7.6m (2021: £4.2m). The company said: “Overall, the business rebounded strongly, benefitting from pent-up consumer demand and government assistance, this enabled the group to repay £9.1m of debt (44% of borrowings) and enter the current more challenging market in a good financial position. Trading in 2023 is in line with market expectations and we are well placed to take advantage of any upturn.” Anne Ackord, chief executive, said: “Like many in our industry, we have had to absorb higher costs relating to wages, energy prices and other inputs. Nevertheless, our businesses remain profitable, well managed and backed by a strong balance sheet and asset base. We are confident in the ability of our management teams to operate successfully in our markets, but we remain mindful of the continuing pressures from the wider economic environment in which we trade.”
Host of McDonald’s franchise operators set to join updated Premium Database of Multi-Site Companies: A host of McDonald’s franchise operators are among the 24 new multi-site companies being added to the next edition of the Propel Premium Database of Multi-Site Companies, which will be released on Friday (28 April), at midday. The updated Propel Multi-Site Database, which is produced in association with Virgate, features AG Restaurants, owned by Andrew Gibson, which operates 26 branches in Glasgow, and employs more than 2,200 people. Also added this month is south west franchise Caspian Networks, which is led by managing director Mike Guerin, and operates 12 branches in Bristol and south Gloucestershire. In addition, Lancashire franchise H&S Restaurants, which is owned by the chain’s former chief operating officer Nigel Dunnington, and operates 17 restaurants in the region, will be featured. Meanwhile, PA Crocker, which is owned by Peter Crocker, and operates 19 restaurants in Kent, is included. Premium subscribers will also receive a 2,000-word report on the new additions to the database. The comprehensive database is updated monthly and provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different. The database now features 2,833 companies. Premium subscribers will also receive the next edition of the New Openings Database on Friday, 5 May, at midday. It focuses on newly announced openings and upcoming launches in the sector and is updated every month. The next edition also includes a 5,000-word report on the new additions to the database. Premium subscribers also receive access to three other databases: the Propel Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; and the Who’s Who of UK Food and Beverage. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Premium subscribers are also being given exclusive access to the recording and slides to Propel Multi-Club Conferences. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Propel group editor Mark Wingett.
Four fifths of Brits say the local is the bedrock of UK communities: New research from leading pub company and brewer Greene King, commissioned ahead of the King’s Coronation, has found that pubs are still seen as the economic and social bedrock of local communities, even as society has changed since the last coronation. With many pubs now acting as far more than simply places to drink a pint or grab a bite to eat, Greene King’s research finds that four in five (82%) Brits recognise pubs as important for local communities. The research also found that 64% of Brits believe pubs support the local economy, while one third (34%) of Brits have worked in a pub at some point in their lives. Greene King said it is expecting to pull around 1.8 million pints across its managed estate of circa 1,600 pubs over the Coronation Weekend. It said that a quarter (27%) of 18-34 year olds plan to visit a pub during the bank holiday weekend. It also found that 43% of over 18s are going to the pub at least once a month. Amidst the celebrations, Greene King is urging the government to look at the future of the British local and how to create a regulatory environment which encourages investment and ensures pubs can continue to serve communities until the next coronation and beyond. Nick Mackenzie, chief executive of Greene King, said: “The social and economic impact of pubs is undeniable. Alongside the great career and training opportunities available in communities up and down the country, many pubs also provide vital services and act as hubs which support people in their local areas. The range of services, fundraising events and other community programmes organised by our general managers and tenants never ceases to amaze me and I am delighted to be able to showcase a handful of our fantastic pubs and the teams behind them in our new report. However, we must not forget that the future of the Great British Pub is far from certain. We have been through some challenging times over the past few years and we cannot afford to take pubs for granted. We need the government to create a regulatory environment which encourages investment – particularly through fundamental reform of business rates, which represent the highest regulatory cost burden for pubs – to enable us to continue to serve our communities, create jobs and contribute to the country’s economic growth.” VAT-free tourist shopping will give the UK £4bn boost: Restoring tax-free shopping for foreign visitors would deliver a £4.1bn boost to the economy and support 78,000 jobs, according to a major report. The Daily Mail says that the expert analysis suggests that – far from draining funds from the public purse – hundreds of millions of pounds would pour into the Treasury. It says the cost of refunding VAT to tourists who have come to the UK for a shopping spree is outweighed by the benefits of attracting more visitors. The additional tourists would spend money right across the economy, generating separate tax revenues as well as creating jobs. That is the conclusion of a study conducted by Oxford Economics in November. Crucially, it thinks the Treasury has hugely overestimated the headline cost of the policy at nearly £2bn. The researchers calculate that, after taking into account growth in visitor numbers stimulated by tax-free shopping, paying more taxes elsewhere in the economy and generating more earnings for employees and companies that also result in more tax there would be a net gain of around £350m a year. And the overall estimated £4.1bn to be added to GDP would be a welcome boost at a time when experts are predicting a struggle ahead. They also said it would sustain 78,000 jobs.
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