In what was a relatively quiet week for listed leisure companies, the M&C20 underperformed the market, falling 1.5%, while the All-Share Index was up 0.5% as the wider market rose on oil price moves and geopolitics.
The big caps in the M&C20 were down broadly in line with the index as domestic stocks took a back seat this week, with Greene King down 1.6%, M&B down 1.7%, Marston’s down 1.4% and The Restaurant Group down 1.2%.
JD Wetherspoon was practically unchanged, rising 0.3% over the week. The stock has been weak for the last month or so, but the company buying back shares at this level seems to be supporting the share price.
Revolution Bars Group was up 2.3% this week to 203.6p, bringing the company’s shares above the 200p listing price for the first time since the group floated last month.
Cineworld was down 2% despite brokers upgrading price targets for the stock. Shares in the cinema operator have been strong since late last year as investors have got to grips with the new company structure.
Enterprise Inns was up 9.1% on the back of broker upgrades. Suggestions have been made that the group could set up a managed division to make the most out of the better end of its estate. Punch Taverns was also up 1% as investors recognise that anything Enterprise does Punch should also be able to do.
Punch will be updating on its interim results on Wednesday and the market will likely hope to hear the group’s views on the MRO. The secondary legislation for the Small Business, Enterprise and Employment Bill will not be finalised until August, when we will have a new government, and given that the market dislikes uncertainty, the tenanted pub companies are likely to have their shares subdued for some time.
Commentary provided by Will Brumby, Langton Capital
