Ivell: 'We can add third arm to Regent estate'

by The PMA Team

Walkabout operator Regent Inns is looking at 'all sorts of acquisition opportunities after its bid for Urbium was thwarted, executive chairman Bob Ivell has revealed.

Ivell, who founded the Chef & Brewer chain when he ran Scottish & Newcastle Retail, claimed that Regent could even add a third arm by buying a food-led business.

'I believe there are still shake-ups at Spirit to come, he said. 'There's a question mark over Whitbread, where there could be a shake-up, and I believe there could be large pubs owned by Robert Tchenguiz that be-come available because he doesn't want to operate them.

Ivell also claimed that Electra Partners could be a short-term investor in Urbium if results were mediocre. 'I'm a great believer in these things coming around, he said.

Regent improved its ability to take place in industry consolidation with a £100m debt placement with four banks at the start of this month. Finance director John Leslie said the placement was indicative of the banks' support for Regent's aspirations to take part in consolidation. Ivell and Leslie's comments came as Regent reported turnover up 7% to £131.3m in the 52 weeks to 2 July.

It made an operating profit of £11.2m before an exceptional item of £4.3m relating to the renegotiation of bank facilities.

Regent's biggest brand, Walkabout, had seen sales growth, excluding Euro 2004 comparisons in June, of 7.3% in the second half. Its Cardiff branch had taken more than £100,000 on a single day when the Millennium Stadium hosted Welsh rugby matches against England and Ireland.

Its Jongluers live comedy venues have also 'traded well with a 6.7% increase in food sales. But Regent management will focus on improving its Bar Risa bars, which feed customers to Jong-leurs and performed less well.

Analyst Mark Brumby, of Oriel Securities, said: 'Regent, since the appointment of Bob Ivell and John Leslie, has turned its attentions to the consolidation of the high street.

'Their first tilt (at Urbium) was robustly spurned, leaving Regent, in the short term at least, without a dancing partner. We would expect the rectif- ication of this situation to be occupying a considerable amount of management time and rightly so.