AUS
NZ
UK
CA
USA
IND
Summary
- Craft beer manufacturer BrewDog plans to go public sometime in 2021 and compete alongside other major beer giants
- Next Plc’s eleven-week sales to 17 July 2021 registered year-on-year growth of 18.6 per cent as against 2019-2020 levels
- Marks & Spencer Group Plc has expanded its digital marketing partnership with Incubeta
COVID-19 pandemic and restrictions on movement were key factors for the increase in online shopping activity of consumers, be it apparel, groceries or other consumer products. A significant change in consumer spending and shopping habits is expected to contribute to a temporary rise in demand. High consumer demand can also be attributed to the growth in consumer savings during the pandemic. Let us take a look at some of the news-making companies in the UK -
BrewDog
Founded in 2007, BrewDog is a craft beer manufacturing business based in the UK. The company is engaged in producing different types of lagers and ales for online as well as retail sales. It expanded into the bar trade business in 2009, after buying an outlet in Aberdeen. As of March 2021, BrewDog raised about $100 million in various crowdfunding rounds.
The company’s revenues improved to reach £238 million for the year ended 31 December 2020, from the previous year’s figures of £215 million, a year-on-year growth of 10 per cent. Its gross profit for the financial year 2020 was £87.9 million, an increase from the previous year’s £75.4 million. Although in 2020, BrewDog incurred an operating loss, the previous year included profits from the acquisition of the Berlin-based brewery. Operating loss and EBITDA for 2020, however, reflects considerable revenue growth, and improved efficiencies and cost base.
BrewDog plans to go public on the London Stock Exchange (LSE) sometime in the current year. However, the ongoing COVID-19 pandemic and difficult market conditions are expected to impact the time of its floatation on the stock market. A tumultuous economic outlook has made it difficult for the company to make a formal disclosure regarding its IPO.
The craft beer manufacturer plans to join the likes of Heineken and Anheuser-Busch as a major beer producer and has managed to garner considerable attention from the beer drinker community. Going public would be the next step for the group in the same direction.
Next Plc (LON: NXT)
Headquartered in Enderby, England, Next Plc is a multinational, high-street fashion retailer of apparel, footwear and home products. The retailer reported strong sales through its online platforms ever since the beginning of the pandemic, which has offset the poor sales scenario across its brick-and-mortar stores.
The FTSE 100 group raised its full price sales guidance for the rest of the year to 6 per cent from the previously set 3 per cent, on the back of its eleven-week sales to 17 July 2021, surpassing expectations by registering a year-on-year growth of 18.6 per cent as against 2019-2020 levels.
In a statement released on 21 July 2021, Next agreed to repay £29 million to the government, as sales surged above expectations due to high demand for clothing, warm weather conditions, and a rise in customers savings as they delayed purchases over the last 18 months due to the pandemic-imposed restrictions.
With a bolstering sales scenario, the fashion chain raised its pre-tax profit expectation for the year FY22 by £30 million to £750 million. Surplus cash at the end of the year is expected to be £240 million that the company plans to distribute back to its investors in the form of special dividends, beginning September 2021.
The company’s stock was trading at GBX 8,022.00, up by 0.96 per cent, at 08:45 AM on 22 July 2021. In the last one year, the stock has given a return of 59.63 per cent.
Marks & Spencer Group Plc (LON: MKS)
On 21 July 2021, UK’s supermarket giant Marks & Spencer (M&S) expanded its digital marketing partnership with Incubeta aimed at delivering programmatic display and paid social channels, as the retailer strategies to markedly improve digital experience for its customers, thereby speeding up business growth. The company warned of a cut in Christmas products in Northern Ireland due to concerns surrounding post-Brexit customs checks. These changes could imply an increase in prices and limited choice for customers in Northern Ireland and may have an impact on its business in the region.
FTSE 250 listed M&S along with other lobby members urged the government to make amends to the self-isolation policy for people receiving notifications on the NHS test-and-trace app, as resulting staff shortages could render closure of supermarkets and impact car production. In response, the government plans to ease self-isolation rules on 16 August 2021.
M&S has a market capitalisation of £2,713.48 million. The revenue of the company for the 53 weeks to 3 April 2021 was £9.0 billion, a year-on-year decline of 11.8 per cent. Its profit before tax was £41.6 million, down year-on-year by 89.7 per cent. It operates globally via 1,509 stores and more than 100 websites and serves about 30 million customers annually.
The company’s stock was trading at GBX 141.60, up by 2.17 per cent, at 08:46 AM on 22 July 2021. In the last one year, the stock has given a return of 44.36 per cent.
