Mitchells & Butlers considers Tchenguiz property bid

29 November 2007 by
Mitchells & Butlers considers Tchenguiz property bid

Pub company Mitchells & Butlers is giving "serious consideration" to a deal with property investor Robert Tchenguiz, it said today.

The All Bar One and O'Neill's owner has in recent weeks revived talks with Tchenguiz through his R20 investment vehicle.

Mitchells today confirmed it had taken a £155m exceptional cost in the full year to 29 November to do with hedging in regards to this summer's abandoned property joint-venture with Tchenguiz.

Although the sale-and-leaseback scheme was effectively killed off by the current world credit crisis, the pub group is now in advanced talks with Tchenguiz over the use of a real estate investment trust (REIT) as an alternative way of unlocking the value in its £5b property estate.

On the smoking ban the pub company said conditions in England since July were tracking Scotland with sales growth expected to slow over the winter months.

Tim Clarke, chief executive at Mitchell & Butlers, said: "Our focus on amenity, service and value has positioned us well to deliver further out-performance against the market through the first year of the smoking ban and more challenging market conditions."

Mitchells said recent trading had proved resilient with same outlet like-for-like sales up 1.4% in the seven weeks to 17 November.

Financial highlights (Year to 29 September)

  • Turnover: up 10.1% to £1.89b (2006 £1.72b)
  • Pre-tax profit: £207m (2006: £208m)
  • Average weekly pub sales up 6% to £18,500
  • Like-for-like sales up 3%
  • 107 million meals served

Punch denies £5b takeover plans for M&B >>

Tchenguiz in talks with M&B to resurrect deal >>

Mitchells & Butlers confirms Tchenguiz joint venture >>

Pub operator Mitchells & Butlers rules out REIT conversion for now >>

By Chris Druce

E-mail your comments to Chris Druce](mailto:chris.druce@rbi.co.uk?subject=M&B considers Tchenguiz property deal) here.

[The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking