Tim Clarke defends Mitchells & Butlers' record
Mitchells & Butlers (M&B) chief executive Tim Clarke defended the record of the group's senior management today, after announcing a new initiative to kick start its property joint venture with shareholder Robert Tchenguiz.
Some observers have been heavily critical of M&B's senior management for allowing Tchenguiz to effectively corner the pubco over the terms of the proposed property venture.
But Clarke denied M&B was under pressure from the property tycoon, who launched an abortive 550p-a-share bid for the group last year.
He said M&B had received a "constructive proposal" from Tchenguiz's R20 company to underwrite a 25 per cent share of a real estate investment trust, "which would offer shareholders the option to realise part of their investment in the property company for cash".
The group's earnings record - up 105 per cent in four years - was a testament to the focus being applied to business performance by executives, he said.
"We are working together very constructively towards capitalising the value of our estate for shareholders," he added.
Noting the recent revaluation of the group's property estate to £5bn - up £1.1bn - Clarke said M&B and R20 were "all in the same place" with regards to shareholder value.
He described the group's trading throughout the 2007 financial year as "resilient on the back of very strong sales in food and drink".
Current trading saw sales up 1.4 per cent in the seven weeks to November 17, he said.
M&B's shares were down 24p - 3.9 per cent - at 597p.
