|
|
Fri 20th Dec 2024 - Update: Soho House shares surge after consortium tables £1.4bn takeover offer |
|
Soho House shares surge after consortium tables £1.4bn takeover offer: Soho House & Co has revealed it has received a £1.4bn takeover offer from a new consortium, which pushed its shares up by more than 60% in early trading in the US to their highest level for more than a year. The company, which is based in London but listed on the New York Stock Exchange, said a “new third-party consortium” has offered to buy it for $9 per share, a premium of 83% from where the stock closed on Wednesday (18 December). The offer is supported by Soho House executive chair and controlling shareholder Ron Burkle and his private equity firm. Burkle has been championing an effort for the international members’ club business to go private for most of the year as shares of Soho House have slumped since its initial public offering in 2021. The offer is conditioned on significant shareholders – including Burkle and Yucaipa – rolling over their equity interests in Soho House as part of the transaction. Soho House’s board has formed an independent special committee to evaluate the offer, and said that no assurances can be given that its assessment will result in any change in strategy. The company said it didn’t expect to make any further public comment unless and until a transaction or alternative has been approved, or the company concludes its reviews. At the end of trading yesterday (Thursday, 19 December), the share price had fallen back slightly, but was still up 47%. In May, the group rejected a previous takeover offer from an unnamed party, stressing that it did not believe the move “adequately reflects the value” of the company. At the same time, the company reported that member numbers grew by 4.8% to 267,494 for its third quarter to the end of September, compared with the same period a year earlier. The group said this was driven by the continued growth of the Soho House brand, where member numbers rose 13% year-on-year. Total revenue for the quarter was up 13.6% to $333.4m (£265.7m). Andrew Carnie, chief executive of Soho House & Co, said: “Our third quarter results reflect the strength of our membership model. Despite a choppy consumer environment, our long-term strategic focus on operational excellence and delivering the best member experience continues to drive improved performance.” At the end of the period, Soho House had 45 Houses, including 14 in the UK, which was an increase of one on the previous year. The total number of UK members increased to 72,777 from 67,931 the year before. Soho House features in the Who’s Who of UK Hospitality, which is one of six databases exclusive to Premium Club members. The latest edition features 874 companies. The companies, listed in alphabetical order, have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Email kai.kirkman@propelinfo.com today to sign up.
Discover how to drive maximum impact through innovation at Restaurant Marketer & Innovator, open for bookings: Discover how to drive maximum impact through innovation at the Restaurant Marketer & Innovator European Summit. Claire Small, marketing director, and Polly Lamy, head of commercial and brand at Elior UK, will share a blueprint for innovation to drive maximum impact. They’ll explore key business outcomes and identify five value creation drivers. With real-life examples of success and “epic learns”, driving brand awareness, cost reduction, sales increase, efficiency and more, they will guide the way through a failsafe innovation process, from defining objectives to trial, rollout and continuous optimisation. Restaurant Marketer & Innovator European Summit is returning for its seventh edition, and tickets are now on sale. The event is a partnership between Propel and Think Hospitality, aiming to build a community, promote the sharing of ideas, recognise talent and define the future of eating out. Bookings are now open for the two-day conference as the centrepiece of the January event series, taking place on 21 and 22 January at One Moorgate Place in London. The conference will focus on technology, marcomms strategies, proposition, brand building, the latest market insights, digital developments and diversification of revenue streams. It is designed for customer-focused chief executives, marketers, technology and innovation teams, as well as investors wanting to better understand the latest marketing, innovation and development opportunities to build market share and grow. For the full speaker schedule, click here. The pre-Christmas early-bird prices are as follows: a one-day ticket for operators is £295 plus VAT while a two-day ticket is £550 plus VAT. Supplier tickets are £395 plus VAT for one day and £700 plus VAT for two. Propel Premium Club members receive a 20% discount. To book, email kai.kirkman@propelinfo.com.
Bank of England – Budget has caused economy to stagnate: The Bank of England has warned the economy is stagnating after chancellor Rachel Reeves’ Budget as businesses have responded by raising prices and cutting jobs. Andrew Bailey, governor of the Bank of England, said that there would be a gradual approach to cutting interest rates because of concerns over the impact of tax rises and a higher minimum wage. Officials at the bank downgraded their forecasts and said that they now expect “zero growth” in the final three months of 2024. The monetary policy committee, which sets interest rates, voted to hold them at 4.75% and said that there was “heightened uncertainty in the economy”. The bank highlighted the impact of the chancellor’s decision to increase the employers’ rate of national insurance in her Budget, and the national living wage. A survey of businesses by the bank suggested that companies were responding by increasing prices and cutting jobs. Prime minister Sir Keir Starmer defended the Budget, arguing the tax rises were necessary to stabilise the economy and insisted Britain would defy economic forecasts. Bailey said that the bank could not say with certainty when interest rate cuts would come next year. Figures from the Office for National Statistics showed that inflation rose to an eight-month high of 2.6% in November, from 2.3% in October.
Glasgow McDonald’s franchisee narrows losses as turnover increases to record £39m on back of expansion: McDonald’s franchisee JE Restaurants, which operates nine restaurants in Glasgow, has reported turnover increased to a record £39,035,891 for the year ending 31 December 2023 compared with £20,079,762 the previous year. The company, which employs about 920 staff, saw pre-tax losses narrow to £19,097 from £411,599 the year before. Gross profit margin was 63.48% compared with 62.55% in 2022 and was “in line with expectations”. In his report accompanying the accounts, franchise owner Jim Mclean stated: “As a result of the 2023 menu and marketing strategy, alongside the execution of incremental price rises, the company has seen increased sales growth as the company continues to operate against the backdrop of significant macroeconomic challenges. The growth in sales is predominately due to the five stores purchased in 2022 being open for a full calendar year alongside growth in delivery sales within our existing restaurants and the purchase of a ninth store in June 2023. On a like-for-like basis for the three stores open for the full 12 months in both 2022 and 2023, there was an overall sales increase of approximately 2.91%.” A dividend of £2,000 was paid (2022: £4,000). Mclean became a McDonald’s franchisee in 2013.
|
|
|
|
|
|
|