The M&C20 outperformed the All-Share index again this week as the wider market was slightly held back by oil price drops and the Autumn Statement, neither of which had particularly negative implications for leisure stocks, says Will Brumby of Langton Capital. 

The M&C20 was up 1.5% to 1,235 points while the All-Share was up 0.8% to 1,047 points.

Eclectic Bar Group continued its fall post its profit warning last week, down another 14% to under 115p. The market is unlikely to be forgiving of disappointing numbers so soon after the company’s listing last November. 

Fulham Shore, the restaurant vehicle backed by David Page, saw a 40% increase in the value of its shares. The stock featured in an article in The Independent last weekend which will have attracted buyers of the stock. Given the small size of the free float in the company, the stock price may become artificially inflated should buyers overbid for a limited number of shares.

Cineworld again rose sharply this week, as positive momentum continued to propel the shares following the company’s well received interim results in November.  The shares suffered earlier in the year following an unexpected entry into the Polish and Israeli markets, however, this looks to have been forgiven, as the company produced relatively strong numbers in what was a difficult period for the cinema industry. The immediate future also looks promising for cinemas given the strong film schedule coming over the Christmas season. 

The Restaurant Group was also a modest riser, up 2.3% this week.  The company has a sizeable presence near cinema sites and will likely benefit from any increase in cinema traffic.

Marston’s shares rose 2.8%, having produced its full year numbers last week which were generally well received by the market. Greene King’s half year numbers showed that its recent like for like managed performance was worse than Marston’s, which may have prompted some switching of shares, and it’s shares fell 1%. The company showed slight margin decline and lower per pub profit, as well as lower like for like growth in its managed division than Marston’s or Mitchells & Butler in recent trading. Spirit, whose share price is now closely linked to Greene King’s, due to the latter’s bid for the former, saw their shares shed 1.5% of their value.

SSP Group was also a riser this week on the back of various broker upgrades as more research firms initiate coverage of the stock.

Analysis provided by Will Brumby at Langton Capital