The M&C20 was up 1.1% to 1,386 points this week while the All-Share seemed reluctant to push its new highs, rising just 0.2% to 1,091 points.
Punch was down 2.5% while Enterprise was up 1.5% this week, though both are down on a one month view. The Small Business, Enterprise and Employment Bill, which contains the market rent only clause, is currently going through the House of Lords, and one would suspect that there is a political will to get the bill enacted before the general election in May. The stock markets hate uncertainty and there is a chance that the shares will stabilise somewhat once the level of legislation around tenanted operations is known.
Domino’s Pizza Group was up another 3.1%. Shares in the takeaway pizza operation have been strong recently, having risen almost 13% this month. The company’s full year results were well received last week where the company saw 11.3% like for like sales growth and a 15.1% rise in profit before tax.
Patisserie Valerie shares were up 3.1% last week. The shares have pulled back a bit recently to around 280p, having touched highs of c290p last month. However it has still been less than a year since the company listed at 170p, making Pat Val one of the few successful recent IPOs.
SSP Group, which operates primarily in travel hubs, was also up 3.1% over the week. Geopolitical news has been less bad recently with the situations in Ukraine and elsewhere making less noise than they have in recent months, perhaps leading investors to feel more bullish on traveller numbers.
Fulham Shore was down another 7.1%, or 1p, last week. The shares rose to 23p last year following the reverse takeover of The Real Greek, but have been edging back since the start of the year.
Richoux Group, which operates four upmarket restaurants saw a 9.6% rise in its shares. The company has a market cap of under £15m and 80% of the shares are held by four individuals, so sharp movements in the share price are to be expected.
Cineworld put in another strong performance last week, rising 2.1%. The Restaurant Group last week highlighted the good performance of the Fifty Shades of Grey film as a factor in driving footfall to its sites near cinemas, and this will obviously also have helped Cineworld. The company is reporting its full year numbers next week, and the market is likely expecting a strong performance since the film’s release in February. As the only listed cinema operator in the UK, it will likely benefit from investors seeking exposure to this year’s strong film release schedule.
Also reporting numbers next week will be JD Wetherspoon which has its half year results. This week saw JDW shares virtually unchanged down 0.1% at 812.5p, and with the company having bought shares back at the £8 mark, the shares should have some support at this level.
Commentary provided by Will Brumby of Langton Capital
