Joseph Holt reports rise in turnover and profit, refinancing negotiations underway: North west brewer and retailer Joseph Holt has reported a rise in turnover and profit for the year to 31 December 2023, while negotiations for a refinancing are underway. The company reported turnover of £73,493,000 for the year – a 4.7% rise on the 2022 figure of £70,192,000 and 4.2% higher than pre-pandemic levels. Its pre-tax profit rose from £4,305,000 in 2022 to £4,345,000. The company made a profit on disposal of fixed assets of £94,000 (2022: £402,000). No government grants were received compared to £268,000 in 2022. Dividends of £499,000 were paid (2022: £249,000). Total borrowings at the year-end were £5m, with committed facilities headroom of £20m. The group’s banking facilities are due for renewal in December 2024 and it said negotiations to renew the facilities have commenced. “After two years of trade impacted by the pandemic, customers returned to hospitality in promising numbers during 2023,” chairman Richard Lee said. “However, recent surveys show that consumer confidence remains relatively low. We have witnessed a cost-of-living crisis, with steep increases in the cost of food, energy and other essentials, and in interest rates, all of which have contributed to consumers in general seeing increased pressure on discretionary spend. The road to a sustained recovery for the hospitality industry, and therefore ourselves, still faces challenges in 2024.” The company carried out major refurbishment of five pubs during the and completed the purchase of the 29-bedroom hotel situated next to its Cat & Lion pub in Stretton. “Occupancy has been high and trading encouraging throughout the year,” Lee said. “Also, we have learned valuable lessons which we have shared with those other pubs in our estate which have accommodation.” A further refurbishment will take place in the coming months at the Thornberries in Middleton, which the company acquired last autumn, and will reopen it under it original name of the Roebuck. “2023 has been another successful year for free trade, with revenue and own draught volumes both increasing in the key sectors of independents and national sales,” Lee added. “Overall performance has been strong and has come about because of a great deal of hard work on the part of the free trade team with existing and new accounts. Continuing to grow volumes of our own products within free trade will remain our focus for the future.” Among the special beers being brewed this year to celebrate the company’s 175th anniversary are a traditional Czech lager, Ducie Bridge, named after Joseph Holt’s original 1849 brewery. Andrew Kershaw has joined as a director and will join his sister, Jane, as the second member of the sixth generation of the family to serve on the board. “Despite the economic challenges that we face, the Joseph Holt team are confident of having another successful year,” Lee added. “It is the focus for all our pubs to be at the Heart of the Community. This, together with events and charity fundraising in our pubs, is seen as crucial in maintaining and growing our business in this difficult trading climate.”

Esquires UK and Irish FY24 store sales up 23.1%, ten more stores to open before end of financial year: Cooks Coffee Company, owner of the Esquires brand, has reported that Esquires’ UK and Irish FY24 store sales were up 23.1% for the 22 weeks to 1 September 2024 at £13.8m. Of this, UK store sales were up 32.4% at £9.5m and Ireland store sales up 6.4% at £4.3m. The group ended the period with 83 sites in the UK and Ireland, up from 75 on 1 April 2024. During the period, the company added nine new stores in the UK and Ireland and closed one. It has a strong pipeline of new stores, with more than ten further outlets expected to open before the end of the financial year. The company said it is benefitting from positive operating cash flow, reaffirming its positive trajectory and underscoring its continued progress. Chief executive Aiden Keegan said: “We are delighted with the sales growth within our current coffee store locations and with the performance of the new stores. FY25 to date has witnessed the company setting new records and this success reflects the dedication of our extended team of shareholders, directors, franchisees, regional developers, and company staff and most importantly the support from our valued customers. We remain committed to delivering great in-store experiences and setting new benchmarks in the months ahead through our dedicated team of local franchise store owners.” Last month, Cooks Coffee Company raised £320,000 through the issue of 4,077,761 ordinary shares to enhance the digital offering of the company and provide a fund to support franchisee growth and development. In June, the company said it was targeting 305 UK and Ireland stores by 2034, as it focuses its expansion plans on the UK. It also made several board changes as it “shifted towards a UK-centric focus”.

CMA inviting comments on Carlsberg's acquisition of Britvic: The Competition and Markets Authority (CMA) is inviting comments on Carlsberg's proposed £3.3bn acquisition of soft drinks giant Britvic. Under the terms of the Britvic acquisition, shareholders will be entitled to receive 1,315 pence for each share. The deal values the listed company at approximately £3.3bn on a fully diluted basis and an implied enterprise value of about £4.1bn. Britvic’s shareholders backed the proposal at a court meeting and general meeting last month. The CMA is now inviting comments on the deal. A statement said the body is “considering whether it may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”. The invitation to comment closes on 24 September 2024. The Britvic announcement coincided with Carlsberg striking a deal to acquire Marston’s 40% stake in their brewing joint venture, which has now completed. Carlsberg intends to create a single integrated beverage company in the UK to be named Carlsberg Britvic, which will be led by a management team comprised of individuals from each of Carlsberg, CMBC and Britvic. Morgan Stanley and Europa Partners are advising Britvic on the transaction. 

 

Businesses planning to put hiring on hold as they brace for workers’ rights overhaul: Most businesses are planning to put hiring on hold as they brace for Labour’s overhaul of workers' rights. A new poll has found that 57% of business leaders will be less likely to hire new workers because of the planned employment rights legislation, reports the Daily Mail. The survey, published by the Institute of Directors, warned the government could be pushing ahead with changes too quickly. It comes as Labour looks to introduce changes to law which will include giving workers rights from day one in new jobs as well as a crackdown on zero-hours contracts. The government has said it will push ahead with this revamp within the first 100 days of power, which means changes could come into force from 13 October. Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said: “Business leaders are concerned about the impacts of the proposed new reforms on the cost of employing staff. The government’s self-imposed deadline for the introduction of employment rights legislation is now just over a month away. Time is running out, so it is essential that the government starts to meaningfully engage with business on the detail of its proposed reforms to ensure that its growth mission is not derailed.” Only 2% of the 715 respondents surveyed said they would be more likely to hire after the changes, the survey found. Concerns have already been expressed by industries, including hospitality, that are reliant on part time and temporary workers. They say these employees also appreciate flexibility and hope this is respected by the new rules. Others have flagged the possible costs and regulatory burdens that the new measures will bring.

 

Three quarters of Generation Z do not plan to work 9-5 jobs for their whole lives: Three quarters of Generation Z do not plan to work 9-5 jobs for their whole lives, a new poll has suggested. A survey of 2,000 adults found that 76% of those born after 1996 did not want to work for someone else, and harboured ambitions to be their own boss. By contrast, only 57% of millennials – born between the early 1980s and 1996 – had either become an entrepreneur or planned to. Just 36% of groups born even earlier identified that way. Of the young people polled, 39% believed they could launch and run a business from their smartphone, and 45% reckoned they could make good money from social media. Younger people were the most confident in their own ability, with 77% believing they would make a success of a business venture. But older generations also had faith in young entrepreneurs, as 44% per cent of all ages polled agreed that Generation Z and millennials had the most entrepreneurial spirit. Some 34% of older generations believed there were fewer opportunities to start a business when they were younger, and 44% said they had felt under more pressure to follow a traditional education and career path.