Propel Newsletter Archive Page

Deliveroo reports third-quarter UK orders rise 2% in ‘more stable but still uncertain’ consumer environment: Deliveroo has reported that UK orders rose 2% in the third quarter of 2024 to 39.5 million with gross transaction value (GTV) “remaining healthy”. In the UK and Ireland, GTV was £1,098m in the third quarter, up 7% year on year. For the year to date, orders were 119.7 million, up 1% year on year. Deliveroo said the consumer environment in the UK and Ireland is “more stable but still uncertain”. Group-wide, the company reported GTV was up 6% year on year in the third quarter in constant currency at £1,778m. It said orders were up 2% to 71.1 million. In international, GTV was £680m in the quarter, an increase of 4% year on year in constant currency. Orders were 31.6 million in the quarter, up 2% year on year. The business stated: “Further progress has been made on our consumer value proposition (CVP), including the enhanced Plus loyalty programme, increasing penetration of mid-sized grocery baskets and expanded selection in retail. Our GTV growth remained healthy in the UK and Ireland with good growth in most International markets. In the UK we made progress on our initiatives in a more stable but still uncertain consumer environment. In international, GTV growth was impacted by the temporary disruption in France as a result of the Olympics. Elsewhere, UAE and Italy continue to grow strongly, while Hong Kong remains a laggard due to the difficult competitive environment.” Deliveroo said it was maintaining its full-year guidance with GTV growth anticipated to be in the range of 5%-9% in constant currency and adjusted Ebitda expected to be in the upper half of the £110m-£130m range. Free cash flow is expected to be positive for the full year. Chief executive Will Shu said: “Our results demonstrate another solid quarter of growth. UK and Ireland growth remains healthy, with improving order trends and overall we are pleased with the underlying growth in international, driven by the UAE and Italy. There are many exciting opportunities ahead for the on-demand delivery industry. With our market-leading CVP, our pioneering approach to new verticals and our continuing work on loyalty, price integrity and service, Deliveroo is well-positioned to capture the significant growth potential in an industry still early in its maturity.”

Premium Club members to receive next Turnover & Profits Blue Book and videos from Propel’s Talent & Training Conference tomorrow: Premium Club members will receive the next Turnover & Profits Blue Book tomorrow (Friday, 18 October), at noon. The database will feature 60 updated accounts and 16 new companies, taking the total to 994. A total of 624 companies are making a profit while 370 are making a loss. The Blue Book is updated each month and ranks companies by turnover, profit and profit conversion, listing directors' earnings for the past five years. Premium Club members will also receive all the videos from the Talent & Training Conference tomorrow, at 9am. They include Karen Turton, founder of Purple Story, discussing the challenges around career development in a fast-moving, broad sector with Barrie Robinson, operations director at Parkdean Resorts, Mat Heather, group operations director at Old Spike Roastery, Travis Fish, operations director at Comptoir Libanais, and Valerie Graham, operations director at Premier Inn. Meanwhile, Liz Robertson, people director of the Inn Collection, delves into the award-winning company’s mission statement of “making people happy”, which aims to support its people in their personal and professional development. Premium Club members also receive access to five other databases: the Multi-Site Database, the New Openings Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Grosvenor Casinos owner reports continued trading momentum in first quarter: The Rank Group, which owns Mecca Bingo and Grosvenor Casinos, has reported its trading momentum has continued with net gaming revenue up 12% to £197.5m for the first quarter ended 30 September 2024. On a channel basis, digital net gaming revenue was up 15% to £57.9m, with growth across both the UK business, which was up 15%, and the Spanish operations, up 15%. Net gaming revenue for its two key UK digital brands, Grosvenor and Mecca, were up 21% and 23% respectively. Venues like-for-like net gaming revenue was up 10% The company’s Grosvenor venues saw turnover increase 13% to £95.3m, driven by a 2% increase in visits and a 11% increase in spend per visit. Rank said Grosvenor saw strong underlying improvement in the quarter and also benefited from better than expected margins. Grosvenor’s performance improvement was consistent across both London and the rest of the UK. Mecca was up 4% to £34.7m driven by a 5% increase in spend per visit with visits down 1%. Rank said visitor volumes picked up towards the end of the quarter following a period of slower trading in July resulting from the sunny weather and England’s run in the Euros. Enracha venues “continued to deliver strong performance” with growth of 9% to £9.6m. Rank stated: “We have made a strong start to the new financial year and are confident of delivering group like-for-like operating profit in line with expectations.” Chief executive John O’Reilly said: “We have continued to build on the momentum that we have generated over the past year and a half. With all business units performing well, the double-digit growth in our Grosvenor venues and UK digital business is particularly encouraging, with customers clearly enjoying the improvements we are making across our land-based estate and to our digital offering. Rank is now a stronger and more sustainable business, and we are looking forward to the land-based legislative reforms coming to fruition in 2025.”

Labour to raise capital gains tax on sale of shares: Chancellor Rachel Reeves will use her Budget to increase capital gains tax on the sale of shares and other assets but will not change the rate for second homes. The Times reported capital gains on profits from the sale of shares, which is currently levied at a higher rate of 20%, is likely to rise by “several percentage points”. Ministers have discussed going further but there are concerns that people would deliberately defer selling assets in a bid to avoid being hit by higher rates. As well as raising capital gains on share profits, Reeves is also expected to end some reliefs in the current regime to increase potential revenues as she seeks to repair the public finances and avoid a return to austerity. Reeves will leave the rate of capital gains tax on the sale of second homes and buy-to-let properties untouched amid concerns that increasing it would cost money. When the Conservatives lowered the rate from 28% to 24% at the last Budget, the Office for Budget Responsibility said that doing so would actually raise nearly £700m because of increased property transactions. More than half of all capital gains relates to the sale of shares, while just 12% is from the sale of property. Capital gains tax is levied on profits of more than £3,000 from the sale of assets but self-invested personal pensions and ISAs are exempt. Prime minister Sir Keir Starmer has signalled that the government will increase capital gains tax but rejected reports it could rise to as much as 39%. He said that the suggestions of such a big rise were “wide of the mark”. Reeves is drawing up plans for up to £40bn worth of tax rises and spending cuts. Most of the money will have to come from tax rises. The Institute for Fiscal Studies said that any increases in capital gains tax should be accompanied by reforms to the system, such as charging capital gains tax on assets after people die. The biggest tax rise in the Budget is expected to be from the imposition of national insurance on employers’ pension contributions, which could raise as much as £12bn.

Yolk closes crowdfunding campaign after raising almost £650,000: Fast-growing “fine fast food” business Yolk has closed its crowdfunding campaign after raising almost £650,000 to help “deliver its next stage of expansion”. Last month, the business opened its eighth site in London – at Cardinal Place in Victoria – and announced its plans for a £300,000 crowdfund. Yolk was offering 1.96% in return for the investment, giving the company a pre-money valuation of £15m. It has now closed the campaign after raising £649,272 from 352 investors. The company, which was founded in 2014 by Nick Philpott, has begun work on its next site, in New Oxford Street, just outside Tottenham Court Road station. The company’s target is to reach 25-plus sites by the end of 2026.