M&B gives Joe Lewis seat on board

Mitchells & Butlers (M&B) has acceded to pressure from investor Joe Lewis, who bought Robert Tchenguiz's R20 share in the company last October, by appointing Richard McGuire as a non-executive director of the company.

He is acting as the nominated shareholder representative of Piedmont, an investment vehicle of Joe Lewis. Piedmont. owns 93,047,373 shares in M&B, representing 22.89% of the voting rights.

M&B has agreed with Piedmont that it can appoint one non-executive director when its economic interest in the business is above 16% and two non-executive directors when its interest is above 22%.

McGuire has "significant" financial experience gained from a number of senior positions including his current role as President of Tavistock Europe - a company owned by Joe Lewis - and previously as a managing director in investment banking at Citigroup and prior roles at HSBC,

Martin Currie and Baillie Gifford. He is also chairman of a recently de-listed company, Bulgarian Property Developments.

A statement from M&B said: "His skills and expertise will further strengthen the board." Meanwhile, the company has unveiled robust like-for-like sales growth of 1.7% in the eight weeks to 11 July."

In addition, it reported improving net operating margins assisted by slowing input

cost inflation. The company said its drink and food sales were up 3.2% and 2.0% respectively against declining markets, indicating it was taking market share.

Overall like-for-like growth was lower because non food and drinks sales categories, such as bowling and machines, had done less well.

In the company's residential estate, which accounts for 77% of total sales, same outlet like-for-like sales were up 3.1% in the eight weeks, with strong performances from the

Locals pub formats assisted by the recent good weather.

Pub Restaurant formats have also traded "well" in a challenging market.

Same outlet like-for-like sales in the High Street, accounting for 23% of sales, were down 1.4%. This decline reflects continued pressure on the later evening venues and a weaker performance across the other high street pubs which do not benefit from good weather.

Net operating margins have improved at the start of the second half of the financial year compared with the first half as a result of slowing input cost inflation and continued productivity improvements.