Fishing for profits

In the cold light of day Greene King's recent foray into restaurants is probably as airtight as the containers used to transport the raw materials that lie at the heart of its new acquisition.

In Loch Fyne the Suffolk brewer has identified a business with shoals of potential. Yes the deal has its doubters, but notwithstanding the much-publicised risks that fresh fish offerings involve, it presses Greene King's buttons, as befits a chief executive as ambitious as the deal-doing Rooney Anand.

Loch Fyne eateries appeal to young types who want some style with their dining out experience but can't afford to eat somewhere upmarket such as Bentley's. It's a growing area, it's profitable, and Anand wants a piece of the action.

Unlike recent deals by the group - Ridley's, Belhaven and Hardys & Hansons - there doesn't appear to be much in the way of a synergy benefit involved; instead this is a classic 'bolt-on'. Some eyebrows may have been raised at the near £2m-a-site cost, but with some existing Greene King pubs likely to be converted into the restaurants that could look good over time.

Following Mitchells & Butlers' (M&B) announcement that it was putting its proposed property arrangement with Robert Tchenguiz on hold due to the debt market situation, Greene King's Loch Fyne news threw a veil over suggestions that it would have 'issues' getting away its own proposed property joint venture, suggestions which Anand refuted.

Less hangs on Greene King's own opco/propco scenario than M&B's. Still, M&B might be quietly glad of the postponement, whatever some analysts have been moved to say about management strategy being made to look somewhat iffy by the delay.

One suspects M&B was less chuffed with suggestions it might be arm-twisted by Tchenguiz into taking on some of Laurel's sites. But you wouldn't expect it to be, would you?