Bosses at Six Continents are said to be furious at the return of speculation about the timing of a demerger of the
group's hotels wing from the pubs and restaurants side.
Executives at 6C, formerly known as Bass, have consistently denied a split between the two remaining wings is in any way imminent. But the group's chief executive, Tim Clarke admitted as the group unveiled its full-year results: "It is difficult to imagine that in five years' time the two businesses would be together."
He said 6C did not pretend that owning pubs and hotels together "is anything other than the product of history."
Shareholders are probably happy right now that the reasonably resilient retail side is there to support the hotels side, which has been badly hit by the general economic slump in the United States and the aftermath of September 11.
Six Continents owns more than 2,000 pubs and restaurants, including All Bar One, O'Neills and Harvester, which are valued by analysts at £3bn. Retail operating profits of £305m in the year to September 30 accounted for 39 per cent of group operating profits of £792m.
However, analysts are keen to see the company expand its hotels side, and they believe selling off the pubs and restaurants is a good way to finance this. One analyst said: "People would be unhappy if they sold the pubs and restaurants before finding a hotel acquisition. But they could gear up a lot more if they were prepared to sell pubs subsequently to reduce borrowings again."
On the downside, Six Continents regards potential hotel targets, such as Starwood, as still too over-priced. Sir Ian Prosser, the group's executive chairman, said 6C had turned cautious on acquisitions after April when it saw the effects of a slowing American economy. He said: "We will hold off until asset prices respond," though he believed hotel asset prices could take six to 12 months to react to the downturn in the economy.
Six Continents reported a 3% fall in profits before exceptional items, from £756m to 731m in the year to September 30. Sales of continuing businesses rose 7 per cent to £4.03bn. The pre-tax fall from £1.99bn to £690m was distorted by last year's £1.2bn profit on the sale of brewing.
Sales at the more than 260 outlets bought from Allied Domecq and converted to Six Continents retail brands are up by more than 40% on the last full year under their previous owner,.
Overall, ongoing operating profit at Six Continents Retail was up by just 1.1%. Clarke said SCR continued to move the mix of its estate towards larger branded outlets, changing from 792 branded outlets at the end of 2000 to 967 at the end of 2001.
Food sales now account for 28% of total sales, up from 23% a year ago. Overall average weekly takings per outlet have increased from £10,700 in 2000, to £13,900 today, up 30%.
More than 650 outlets now have average weekly takings in excess of £15,000, against just over 540 outlets in the previous year. Outlets with average weekly takings in excess of £20,000 have risen to more than 350, up from 300 outlets last year.
Total sales in the ongoing estate were up 4.3% to £1.4bn, with food sales up 10.1% and drink sales up 3.1%.
group's hotels wing from the pubs and restaurants side.
Executives at 6C, formerly known as Bass, have consistently denied a split between the two remaining wings is in any way imminent. But the group's chief executive, Tim Clarke admitted as the group unveiled its full-year results: "It is difficult to imagine that in five years' time the two businesses would be together."
He said 6C did not pretend that owning pubs and hotels together "is anything other than the product of history."
Shareholders are probably happy right now that the reasonably resilient retail side is there to support the hotels side, which has been badly hit by the general economic slump in the United States and the aftermath of September 11.
Six Continents owns more than 2,000 pubs and restaurants, including All Bar One, O'Neills and Harvester, which are valued by analysts at £3bn. Retail operating profits of £305m in the year to September 30 accounted for 39 per cent of group operating profits of £792m.
However, analysts are keen to see the company expand its hotels side, and they believe selling off the pubs and restaurants is a good way to finance this. One analyst said: "People would be unhappy if they sold the pubs and restaurants before finding a hotel acquisition. But they could gear up a lot more if they were prepared to sell pubs subsequently to reduce borrowings again."
On the downside, Six Continents regards potential hotel targets, such as Starwood, as still too over-priced. Sir Ian Prosser, the group's executive chairman, said 6C had turned cautious on acquisitions after April when it saw the effects of a slowing American economy. He said: "We will hold off until asset prices respond," though he believed hotel asset prices could take six to 12 months to react to the downturn in the economy.
Six Continents reported a 3% fall in profits before exceptional items, from £756m to 731m in the year to September 30. Sales of continuing businesses rose 7 per cent to £4.03bn. The pre-tax fall from £1.99bn to £690m was distorted by last year's £1.2bn profit on the sale of brewing.
Sales at the more than 260 outlets bought from Allied Domecq and converted to Six Continents retail brands are up by more than 40% on the last full year under their previous owner,.
Overall, ongoing operating profit at Six Continents Retail was up by just 1.1%. Clarke said SCR continued to move the mix of its estate towards larger branded outlets, changing from 792 branded outlets at the end of 2000 to 967 at the end of 2001.
Food sales now account for 28% of total sales, up from 23% a year ago. Overall average weekly takings per outlet have increased from £10,700 in 2000, to £13,900 today, up 30%.
More than 650 outlets now have average weekly takings in excess of £15,000, against just over 540 outlets in the previous year. Outlets with average weekly takings in excess of £20,000 have risen to more than 350, up from 300 outlets last year.
Total sales in the ongoing estate were up 4.3% to £1.4bn, with food sales up 10.1% and drink sales up 3.1%.
