The M&C20 outperformed the market this week, rising 0.1% (1,338 points) against the All-Share’s 0.7% decline (to 1,073 points) as investors favoured domestic stocks in fear of an international slowdown.
Given the relative lack of leisure news last week, it is not surprising to see Greene King, Cineworld and Spirit virtually unchanged at -0.2%, +0.2% and -0.2% respectively.
Marston’s was up 3.6% this week following the announcement that the company has bought Thwaites’ beer brands for £25.1m. The company suggested that the move would add some £1.5m to this year’s PBT and perhaps £4m per year after that. The company looks to be in a fairly good place currently as the disposal of the bottom end of its tenanted estate in recent years begins to have a positive impact on Like for Like numbers, and the announcement that franchised pubs will be excluded from the MRO will be welcome news.
Fulham Shore was the other big news this week. The shares are up some 53.8% following the announcement that the group was merging with Rocca, the company that owns a la mode pizza brand Franco Manca. There have been press comment that the company could more than double the number of sites in the brand over the next two years.
Recently listed Revolution Bars Group gained 2.8% this week, bringing the shares almost back to the price at which they listed. The shares did fall to a 5% discount the week the company was admitted to the market.
JD Wetherspoon shares ended the week down another 1.6% having disappointed the market slightly at their interims on March 13. The company seems to be taking the dip in its shares as something of a buying opportunity however, with the company having bought back almost £4.4m worth of shares in the past few weeks.
M&B was down another 2.5% this week, having fallen 7.8% last week, while The Restaurant Group saw a 1.6% decline in its shares. Investors may have been switching into companies that are perceived to have turned a corner such Marston’s and Marks & Spencer.
Richoux, owner of the Zippers and Villagio brands, continued its good run, with the shares up another 11% this week. The group announced earlier this month plans to roll out its Richoux brasseries this year. The shares are very tightly held and are liable to spike up given the low volume of shares available.
Commentary provided by Will Brumby of Langton Capital
