Lewis representative lists M&B grievances

Activist Mitchells & Butlers investor Joe Lewis has called on the company to change its banking advisors, concentrate on bottom-line profits and improve disclosure.

The demands were made by Richard McGuire, who represents Lewis's investment vehicle Piedmont.

He told the Sunday Telegraph: "The real issue is about being more bottom-line focused. Everything is about top-line revenues.

"Last year revenues were up 2.6% but pre-tax profits were down 23.9%. Over the past five years - excluding the impact of the swaps - revenues are up 26% and pre-tax profits are down by 27%. As a shareholder, that divergence is concerning."

McGuire welcomed last week's analyst presentation where chief executive pledged that the company would focus on six lead brands. But he signaled that the support for Fowle was now conditional despite backing his appointment last August.

"We fully supported Adam - he deserved a shot at it. But now I have reservations about his motivations and judgment.

"As a chief executive he's six months in and he's now got a chance to prove himself. The market will decide."

McGuire made it clear that Piedmont would push for a wider shake-up of M&B's advisors should it win the Thursday's boardroom tussle at the annual general meeting.

"While the chairman, chief executive and finance director have gone, you don't look at the board and say the swap was an isolated decision. We would certainly make representations to review their advisers."

It is claimed that Citigroup is one adviser who role would be reviewed.

McGuire, who was ousted from the board in December, also pointed to £13m cost of a strategic review in the wake of the failed property joint venture - he claimed M&B had neither published the review nor revealed the cost.