The M&C20 Index once again outperformed the FTSE All Share this week, although growth slowed to 0.5%, against +1.6% last week, following a sluggish performance by some major pub groups in particular. The FTSE All Share Index fell 0.3%.
Punch Taverns’ shares fell the sharpest of the M&C20, down 9.4%, after rallying last week with growth of 6.5%.
This morning the group made another announcement on its debt restructure. Punch said it would default on debt payments within 30 days of the 15 April covenant testing date if its proposal is not accepted, and warned of the “material negative impact on the business”.
More positively, Punch reported a stable operating performance, with core estate like-for-like net income for H1 expected to be broadly in line with the 1.5% growth reported for the first 20 weeks to 4 January.
Shares also fell back for JD Wetherspoon (-1.9%), Young’s (-4.1%) and Shepherd Neame (-1.2%).
The strongest performing pub group was Greene King, at +2.6%. The firm returned to the top of the Index with a market capitalisation of £1.99bn, against £1.89bn for Mitchells & Butlers (+0.4%).
Restaurant companies fared better in general, with growth of 3.4% for Domino’s after it reported like-for-like sales growth of 7% across its 670 UK mature stores during 2013.
The Restaurant Group - which also reported strong results this week, with total sales up 10% and like-for-like sales at +3.5% for the eight weeks to 23 February - saw its share price grow 2.7%.
Prezzo experienced a 2.9% share price lift and Tasty saw its share price grow 1.8%.
Shares in Richoux and Essenden fell back by 8.6% and 4.2% respectively after strong growth last week, while Cineworld’s shares fell by 7.1%.
