Normal service resumed for the M&C20 this week, as it returned to growth (+1.5%) and outperformance of the FTSE All-Share Index (+0.6%) after last week’s decline of 0.7%.
Growth was led by Domino’s (+2%), which reports its Q1 interim management statement next Tuesday, as well as Enterprise Inns (+1.7%) and JD Wetherspoon (+1.6%).
However, the two biggest M&C20 companies by market cap, Greene King and Mitchells & Butlers, both saw their share prices fall, by 0.1% and 2.8% respectively.
Punch’s share price fell 10.6% as it nears its next financial covenant reporting date of 15 April; the company hopes to report revised proposals for its debt restructure ahead of then.
Bar group Eclectic, the newest member of the M&C20 which debuted on AIM late last year, saw its share price rise by 1.8% after posting its first results as a listed company. Eclectic reported a 13% rise in pre-adjusted EBITDA to £1.7m in the six months to December 2013, and also announced the acquisition the Lowlander Bar and Brasserie in London’s Covent Garden, together with the Lowlander brand, which it hopes to rollout nationally.
Leading analyst Simon French at Panmure Gordon “strongly reiterated” his Buy recommendation for the firm, which he said announced a “solid set of maiden results” since its flotation.
Adnams, the other M&C20 firm to update the market on its financial results this week, saw its share price rise 0.6%. The Suffolk-based company reported an increase in pre-tax profit from £3.2m to £4.1m for the year to the end of 2013, while turnover increased 6.3% to £60.5m.
Meanwhile, the share price of Young’s, the London-based pub operator, declined by 2.6%, despite being upgraded by Karl Burns of Panmure Gordon from Hold to Buy. Fuller’s, for which Burns raised his Target Price from 900p to 978p in a note this week, saw its share price dip by 0.1%.