The M&C20 was broadly unchanged this week, rising 0.2% to 1,304 points while the All-Share had a worse week, falling 0.7% to 1,058 points.
Mitchells & Butlers was down 4.8% this week after the company’s Q1 trading update indicated it was slightly underperforming its competitors. The company saw like for like growth of 1.7% in its managed division and said that margins were down for the period. This compares to 2% like for like growth in Marston’s and Greene King’s managed estates, and 2.7% growth at Wetherspoon, with Marston’s showing margin increases.
Greene King’s shares were up 1%, most likely as a result of favourable comparisons to M&B, while Marston’s were practically unchanged, up 0.1% for the week. Some commentators have suggested that Greene King’s soon to be enlarged managed estate, as a result of its acquisition of Spirit will make the group more directly comparable to M&B than Marston’s, which may explain the subdued reaction to the M&B update in the Marston’s share price.
JD Wetherspoon saw a 2.1% decline in its share price over the week having slightly disappointed the market last week as the group saw margins continue to decline in their Q2 update. Since the update, the group has bought back more than £2.5m worth of its shares.
Fulham Shore’s shares were down more than 18% this week. The shares have been very strong since its listing in October, rising from 7p to over 20p in three months. The stock is very tightly held, meaning large moves in the share price are to be expected, however at its peak, the share price valued the company at some £7m per restaurant, which was probably too high.
Patisserie Valerie ended the week up over 10%, more than recovering from its 5.7% dip last week. The group collected the IPO of the year award at the 2015 Grant Thornton Quoted Company Awards this week. The company’s shares listed at 170p in May, and are currently worth over 280p.
Eclectic Bars was up 1% this week following a trading update on Friday. Trading was said to be in line with the group’s recently lowered expectations.
Commentary provided by Will Brumby of Langton Capital
