A leading analyst has asked whether Mitchells & Butlers (M&B) is set to “join the party” and report good numbers when it updates the market next week and again called for an update on its restructuring programme and search for a new chief executive.
Geof Collyer at Deutsche Bank said: “The Jubilee and various sporting events have provided a much needed stimulus to trade in recent weeks. Greene King (+7.1%, 8 weeks to 17 June) and JD Wetherspoon (+6.1%, 11 weeks to 8 July) have reported strong recent lfls numbers that give some colour beyond the M&B trading period, whilst Young’s has just reported +4% for the 13 weeks to 1 July, which works out as -2% for 7 weeks to 21 May and +11% for 6 weeks to 1 July. Everyone else is reporting good numbers – maybe M&B will join the party by having enjoyed the partying?
“Last December M&B embarked upon the most radical restructuring of its operations at least since demerger in April 2003. An update on how things are progressing would be appreciated, though of course, if the lfls are not as good as the peer group, questions will be asked as to whether the whole process has been successful or not.”
Collyer said that investors were keen to see a new chief executive appointed.
He said: “A number of suggestions have been bandied around, but the market would prefer one that will stay around. To that end, Joe Lewis’ yacht is apparently due back on its mooring by Tower Bridge for the Olympics, so if Chairman Bob Ivell is as close as some think he is to recruiting, it would be a good opportunity to conduct interviews with the group’s largest shareholder (Piedmont Holding has been increased by 17% since the decision not to bid was taken last November; it now stands at 26.34%).”
