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Daily Mail
15-07-2025
- Business
- Daily Mail
Close Brothers flogs brewery rental unit amid simplification drive
Close Brothers will sell its brewery rental business as part of a simplification drive ahead of an imminent ruling on compensation related to the motor finance commissions scandal. The group, which last week revealed an overhaul of its premium finance division, told investors on Tuesday it would sell Close Brewery Rentals to MML Keystone, a fund managed by MML Capital, for an undisclosed fee. Close Brewery Rentals, which Close Brothers has owned since 2007, sells, rents and maintains beer kegs and casks to breweries and distilleries across the country. Their kegs are identifiable by their branded orange stripes around the barrel. 'The sale aligns with the group's strategic priorities to simplify our portfolio, improve operational efficiency and drive sustainable growth,' the group said. It added that the sale is expected to generate 'a modest gain on disposal and capital benefit', but is unlikely to have a 'material ongoing impact' on profits. Close Brothers last week announced it would refocus its premium finance business towards commercial lines and away from retail lines. It comes ahead of the Supreme Court's decision on the scale of compensation required in the wake of the motor finance commissions scandal, which has weighed heavily on Close Brothers and other lenders. Analysts at Shore Capital said they expect 'further announcements of a similar nature to follow'. They added: 'We await news from the Supreme Court on the motor finance commissions appeal, which is expected imminently and should help to provide further clarification around industry redress risk, pending the design and implementation of a subsequent FCA redress programme, should this be required.' Close Brothers said it will remain a 'key specialist lender in the beverage finance market', and continue to provide finance solutions for brewery and distillery equipment. Close Brothers Beverage Finance's loan book was worth roughly £35million as of 31 January, according to the group. Boss Mike Morgan, Group Chief Executive added: 'Over the past 18 years, we have successfully grown the brewery rentals business to now serve over 500 breweries in the UK & Ireland. 'We believe that this is the right time to sell CBRL given the capital needed to maximise its growth potential and our focus on simplifying our business portfolio. 'We thank the CBRL team for their hard work and dedication and wish them well in this exciting new chapter. Whilst we are selling the brewery rentals business, we will continue to offer funding solutions to the UK beverage finance market, where we see attractive growth opportunities.' Close Brothers shares were up 0.8 per cent to 401.8p in early trading. They have added around 70 per cent since the beginning of the year as investor concerns over the scale of potential motor finance payouts have eased.
Yahoo
03-07-2025
- Business
- Yahoo
Winners of Defense Stock Frenzy in Europe, From Chemical to Goggle Makers
(Bloomberg) -- This year's surge in Europe's biggest defense stocks has elicited some obvious winners, leading investors to dig deeper beneath the surface for other names that might stand to benefit from the billions being diverted toward military budgets. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars From goggle makers to chemicals producers, and even a printing company, stocks with the merest link to defense have been snapped up, sending share prices soaring. While heavyweight Rheinmetall AG has tripled this year, the German tank and munitions maker's advance has been outshone by a fourfold jump in Exail Technologies SA, a supplier of maritime drone systems. Steyr Motors AG, a small producer of engines for tanks and boats, has seen a similar level of gains. 'There's been a real shift in investor appetite for UK and European small-cap defense companies,' said Jamie Murray, an analyst at Shore Capital Stockbrokers Ltd. 'There's a lot of momentum behind these stocks, with investors more willing to look past short-term challenges to medium-term opportunities.' Here's a look at some of the defense-related stocks that have caught the eye of investors: Night Vision Core defense stocks got an immediate boost when Russia invaded Ukraine in February 2022, but a handful of night vision specialists have come into focus more recently. Theon International Plc, which sells thermal-image and night vision goggles, listed in Amsterdam in February last year. The shares trade at more than three times their IPO price of €10 and at around 27 times blended forward earnings, its valuation is the most expensive of the night-vision cohort. Exosens SAS listed in June 2024 in Paris. It provides photo-detection and low light condition imaging solutions and serves customers worldwide. The shares are up 124% since their debut. Analysts are positive on the outlook for both Exosens and Theon, with most who cover the stocks rating them as a buy. Still, some investors are starting to book gains after this year's spectacular advance. More than €230 million ($262 million) of shares in Exosens and Theon were sold this week in separate block trades. Smaller peer NSE, also Paris-listed, is a producer of aircraft wiring, accessories and night vision systems. It's up around 45% in 2025, adding to two straight years of double-digit gains. Robotics Exail Technologies is another star of Europe's defense rally, its shares surging over 300% in 2025 and its market capitalization jumping to €1.26 billion from about €340 million in just a few months. The ascent started in early February with the announcement that the company had signed a contract worth hundreds of millions of euros for underwater drone systems for mine warfare. Exail has a full house of buy recommendations from the five analysts tracked by Bloomberg who cover the stock. Chemicals Alzchem AG, based in Trostberg, Germany, produces a raw material used in propellants for NATO-standard 155mm artillery ammunition. It has exposure to the defense push through its customers and European Commission funding. It also signed a contract with the US Department of Defense in 2024. Five out of six analysts tracked by Bloomberg who cover Alzchem have buy ratings on the stock. Industrials Industrial companies are enjoying varying degrees of success in aligning themselves with the lucrative defense theme. Obvious defense plays such as Rheinmetall, Leonardo SpA, Saab AB, Thales SA and BAE Systems Plc have become increasingly expensive, trading on average at around 34 times forward earnings, compared to less than 15 for the Stoxx 600 Index. No surprise then that investors have looked for cheaper alternatives. Thyssenkrupp AG, which trades at around 11 times forward earnings, has emerged as a major 2025 winner. The shares have more than doubled this year as the planned spinoff of its submarine-building unit drew fresh attention to the steel company's defense credentials. Deutz AG, an engine manufacturer, was initially reported to be among bidders for Thyssenkrupp's marine systems unit. There have been no concrete developments on that front, but the Cologne-based company's chief executive officer has said the firm is interested in defense. Its shares have soared 92% this year. On a similar theme, printing company Heidelberger Druckmaschinen AG is another German firm said to be exploring a shift toward defense. Its industry unit designs, constructs and equips factory production lines — capabilities that could have military applications. The stock is up around 56% this year. Other companies are finding ways to benefit from booming military budgets. In Italy, a bidding war for truckmaker Iveco Group NV's defense unit has sent the firm's shares to a record high. The company develops and manufactures specialized vehicles for defense and civil protection and has expanded into artificial intelligence and software technologies. It's said to be seeking up to €1.5 billion for its military unit. Mutares SE unlocked a spectacular return when the private equity firm listed Steyr Motors on the Frankfurt Stock Exchange in October. Steyr, formerly a struggling Austrian engine maker, is closing in on a 300% gain this year. Avio SpA, an Italian aerospace company, is exposed to two hot trends: defense and space propulsion. Its shares have surged over 50% this year. Avio says it is a key service partner to Italy's air force, manufacturing, designing and servicing the EJ200 engines for the Eurofighter Typhoon, among others. IT, Cybersecurity, Intelligence, Satellites Eutelsat SA has rallied this year, at one point soaring 300%, as investors saw it as likely to play a role in a new European military intelligence satellite network. The firm has put itself forward as an alternative to Starlink in Ukraine. Still, the shares have erased a large portion of their gains since the initial enthusiasm, weighed down partly by concerns around the company's debt. OHB SE, another satellite company, has also surged, and is regarded as a potential beneficiary of German investment after the Bremen-based manufacturer won a €2.1 billion order last year. Cohort Plc, a UK defense company based in Reading, has seven businesses specializing in areas such as satellite communications, surveillance, sonar systems, fire control and electronic warfare. Its shares rose 96% in 2024 and are up another 43% this year. Indra Sistemas SA, a Spanish IT firm which makes radar air defense systems, has more than doubled this year. Its chairman said in May that the firm also plans to build tanks. 'Accessories like telecommunications, radars, encryption — all of this is a big part of the value of the vehicle — and we were missing the other part,' Indra's Angel Escribano said last month. Shares in Mildef Group AB, a Swedish developer of military-grade laptops, tablets and tracking solutions, are up almost 80% this year, paring some of their advance on June 3 after CEO Daniel Ljunggren sold a third of his stake in the company. Headsets, Breathing Gear Invisio AB, another Swedish company, is the self-proclaimed global market leader in tactical communication and hearing protection systems. Its website features images of khaki headsets, intercom systems and cables. Its shares have climbed almost 30% since the year began. German medical equipment company Draegerwerk AG, whose breathing gear turned it into a Covid pandemic beneficiary, is up more than 50% so far in 2025. The company 'is positioning itself in the defense sector by leveraging its expertise in air filtration, sensor technology, and personal protective equipment,' Warburg analysts wrote in April. The two are part of the growing ranks of listed companies producing military gear, vehicles and weapons, and whose shares are surging as investors position for sustained defense spending by governments. 'The nature of warfare is changing,' said Graeme Bencke, a fund manager at Amati Global Investors Ltd. 'Things like space and cyber are increasingly important, as well as battlefield communication and autonomous vehicles.' --With assistance from Lisa Pham, Julien Ponthus and Julius Domoney. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
01-07-2025
- Business
- Bloomberg
Billionaire Justin Ishbia's Firm Closes $450 Million PE Fund
Shore Capital Partners, a Chicago-based private equity firm founded by billionaire Justin Ishbia, has closed a $450 million fund that will focus on food and beverage investments. The fund, the third in the food and beverage industry for the firm, will invest in companies with between $5 million and $100 million in annual revenue, Shore Capital said Tuesday. In addition to investments by Shore's partners, the fund also won commitments from existing and new limited partners including family offices, university endowments and financial institutions.
Yahoo
23-06-2025
- Business
- Yahoo
Gen Z opportunity explained – industry experts on brand loyalty to authenticity and health
Just like the generations before them, Gen Z consumers offer specific opportunities for food and drinks brands but the cohort might not be so easy to conquer amid shifting conceptions and priorities. Arguably, Gen Z are much more aware of the environment and sustainability issues than their forebears and more concerned about the links between diet and health. And they are certainly more tech savvy than previous generations, especially around more youth-centric social media platforms such as TikTok. But one also has to bear in mind the Gen Z age group, typically regarded to be 16-25 years and remember what our own consumer habits were before we moved up the age ladder. And did we even care in an arguably care-free world? We asked industry experts from Verlinvest, Shore Capital, Manna Tree Partners and AlixPartners for their views on how producers can tap into the Gen Z age bracket. Is it all about locking in brand loyalty and/or a preference for emerging brands? Are price and convenience key factors? And how important are environmental considerations? Gen Z cares deeply about social and environmental issues but these interests are not the primary food purchase drivers. Brand, quality and value for money will always matter most. Meat consumption has shifted rather than declined as everyone expected in the short-lived plant-based revolution. People are eating less beef and more chicken. Fewer hamburgers and more fried chicken sandwiches. Enhanced nutrition products are exploding in popularity as it allows Gen Z consumers to get great tasting foods that are engineered to be healthier. In today's market of seemingly infinite substitutes, the narrowing cost advantages and competitive digital marketing narrative matters more and more. Convenience matters but not as much at the brand/business level. The median age of first-time home buyers in the US is up ten years, from 28 in 1990 to 38 in 2024. As young people are renting rather than buying (or living with parents), they have a lot more money to spend. Social media has created an increased desire for health consciousness, bringing self-care and fitness to the forefront. There is certainly increased scrutiny of ingredients lists but often based on trends and a desire to feel like a nutritional intellectual rather than scientifically proven concerns related to ingredients. The trick is in creating a lasting habit with the younger consumer, which is much harder for a brand to do than with the generations of the past Young people are far more interested in trying and trusting new brands. New brands are fun. The trick is in creating a lasting habit with the younger consumer, which we have seen is much harder for a brand to do than with the generations of the past. Brands can grow very quickly but if a lot of purchases are trial rather than recurring purchases, the brand is at risk of being a fad. Social and experiential is the next frontier for food brands. It exists in marketing through activations and collaborations. The brands that can bring people together around their product are going to capture the imaginations and loyalty of young people. Sharing isn't just a behaviour – it's a brand strategy for the future. They are undoubtedly the age group of the takeaway meal. Take that group out of the food and beverage channel and there would be a material slump in demand. At the same time, they're the age group that's got the highest level of abstinence from alcohol. I think you'll find they're very engaged on the workings of meal deals. They'll be able to tell you what Boots is doing versus Greggs, what Greggs is doing versus Tesco, and what Tesco is doing versus Pret. That's why there's a lot of digitisation in that arena. In terms of shopping channels, this is definitely the age group that's most into remote delivery, the likes of Uber Eats and Deliveroo. They are the digital age and that's probably going to be the key characteristic of how suppliers see the market When you look at the digital world, they are the digital age, and that's probably going to be the key characteristic of how suppliers see the market. And how does that kick into product formulation, assortment and marketing as opposed to anything around manufacturing. In terms of what they consume, I think there are a lot of moving parts – there are some very healthy young people and some unhealthy people when it comes to obesity. The convenience channel would also be much more important to them than the superstore. The vast majority of them don't have a car and you need a car to do a trolley shop at a superstore. They are definitely the shoppers of the future. You can absolutely see why brand owners are trying to reach people, and particularly young people, because they're the most digitally savvy. Equally, those young people are very switched on in talking to each other and sussing out what's a deal and what isn't a deal and in that respect brand owners have to tread very carefully. They are definitely trying to get into the heads of brand loyalty for the rest of people's lives. It's a much more immediately addressable and cheaper mechanism to reach people today than 25 years ago. If you created a brand 30-odd years ago, pre-internet, you'd have to go through all sorts of mechanisms to try and reach people and you'd have to have a reasonable stash of dosh to get a brand launched and to build it up. Gen Z, Gen Alpha, younger generations are going to first and foremost demand authenticity. If an old brand tries window-dressing itself by adding nutrients or features and benefits, that is not as likely to work as well as, 'how can we create an authentic solution, either a new brand or NPD? How can we create something new that authentically meets the needs of those consumers and speaks to them?' I do believe that health and wellness is going to be at the centre of what Gen Z and Gen Alpha want. Many of these large and mid-sized food companies, they're so dependent on legacy brands created in the 50s and 60s. They were the modern brands of previous generations and the reality is those legacy brands don't necessarily speak to younger consumers in the way they did to the older ones. If you're running a food company, you've got to start thinking about what are the seeds I'm planting to go and ultimately appeal to that next generation. Sometimes the mistake that can be made is how do we modernise the legacy brand and let it do the job of appealing to a new generation and sometimes that works but a lot of times it doesn't. I'm struck by how counterintuitive sometimes things are We talk about health and wellness, sustainability and the environment, and all those things in reality do play out in purchasing power and how money by that generation is being directed. I'm struck by how counterintuitive sometimes things are. Some Gen Z who grew up eating a bunch of processed food may continue to do that but I'm pretty surprised at the number of people in this generation who say I'm going to do it differently than the way I was brought up. This is a generation where many of them grew up during the pandemic in a time where the seeds of mistrust were being sown. A big part of this generation grew up believing they need to be more reliant on themselves, and less on institutions, which in our business means 'Big Food', and some of these brands aren't as healthy as they thought they were. There's a role for legacy brands to play and new emerging brands. Cheerios cereal, for example. General Mills has done an amazing job in keeping that brand relevant over a century now, everything from goodness of oats to heart health messaging. They've had really nice success with a Cheerios protein extension. You'd be pretty blown away by the willingness that Gen Z has to invest their dollars in healthier food. Health and wellness is very price resilient. It's more price resilient than you might think. We're also living in a time right now where private label or house brands are growing faster than they ever have been. In the US, it's always been a lot smaller than say in the UK but private label continues to grow share You're going to see more and more momentum buying healthier private labels driven by Gen Z and Millennials. But by the same token they're also going to be the ones buying things like pasture-raised eggs for $8 a dozen and Magic Spoon cereal for $8 a box. Like most generations, it is a bit of a catch-all. They're not by any means consistent or coherent in what they're doing or what they're after, or even what their income levels or choices are. What we do see is convenience is important. Ready-meal kits and things like that aimed at the older part of this generation who are perhaps living away from home for the first time. Clearly, with the issues of inflation, price is king. But I believe we're looking at probably one of the worst times to graduate university since perhaps 2007-2008. Many of those are struggling to find jobs and moving back with their parents where they're not necessarily making as many choices. Certainly in this generation, for the whole or parts of it, high-protein healthy eating is there and that's probably the impact of social media on what your body shape should look like and aspire to. There is an increasing awareness about ESG issues within that cohort There is a significant trend around moderation. I was talking to a brewer recently with a big German presence, and they were saying that German teens, or German Gen Z, are buying less alcohol than used to be bought before and significantly. I think we're seeing that broadly everywhere. There is an increasing awareness about ESG issues within that cohort, they've grown up through the whole conversation about climate change and all of that. Broadly, some are making decisions based on those trends. There is heavy marketing directed at Gen Z on social media but it's much more around emotional and functional benefits, saying influencers consume things or prepare things, than it is around greenwashing. There's a big risk with this generation that if you do try and greenwash something and say it's healthy or low GHG, whatever, they can be quite smart and find that out. And then there are people that expose that sort of thing on social media as well. If you think about HFSS regulations, a number of firms have reformulated to comply. Compliance allows you to market more and that's attracting consumers because you're able to market around the emotional benefits of the product. Potentially, entry through social media is a lot less than it used to be through TV ads, etc, to get that breakthrough with customers or customer awareness. But you do see a lot of smaller brands or start-ups getting a lot more cut through. The challenge with some of those is not so much getting customer awareness but it's getting continued purchase because the product needs to deliver. "Gen Z opportunity explained – industry experts on brand loyalty to authenticity and health" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
The Herald Scotland
18-06-2025
- Business
- The Herald Scotland
Safestay boosted by hostel openings in Glasgow and Edinburgh
Safestay gave no further details but noted: 'The Company does not currently anticipate operational or headcount changes arising from any such freehold disposal.' The announcement indicates that Safestay may be considering a sale and lease-back type deal, which would allow it to raise cash that could be used to fund acquisitions. House broker Shore Capital said Safestay was well-positioned for growth in what it described as a highly attractive segment of the global hotel industry. Hostels are popular with young travellers. READ MORE: SNP Government renewables fixation absurd after windfarm switch off bill soars Safestay has highlighted the potential of the Scottish market by opening hostels in Glasgow and Edinburgh in recent years. It converted the Best Western Glasgow City hotel on Elmbank Street near Charing Cross Station into a hostel after buying it for £3.15m in 2019. The company opened the Edinburgh Cowgate hostel in 2024 on the site of a property that it bought for £4.3m in 2023. The company has five hostels in the UK including outlets in London and York. It has hostels in a range of other countries including Spain and Italy. Analyst Greg Johnson at Shore Capital said Safestay was well-funded and had a track record of successful asset recycling. READ MORE: Crude price could hit $100 per barrel amid Middle East conflict escalation risk Mr Johnson noted that at the end of June 2024, Safestay's portfolio of seven freehold and long leasehold properties had a valuation of £50.1m. The properties in Glasgow and Edinburgh were valued at £4.9m and £4.3m respectively. Safestay has a stock market capitalisation of around £16m. The company said there could be no certainty that the disposal it is considering would proceed and advised shareholders to take no action. Shares in the firm closed at 25p yesterday, unchanged on the day. They sold for 21p in May. READ MORE: FirstGroup hails success of Lumo trains ahead of Scottish route launch The company is led by sector veteran Larry Lipman who is managing director of the London-based Safeland residential property investment business. On Monday Safestay said it had been awarded a £1.4m insurance payment in respect of the interruption to its business during the Covid-19 pandemic.
