M&B to reveal review details next week

Mitchells and Butlers (M&B), the embattled managed pub group, has revealed that it will release details of its latest strategic review next Wednesday, 24 March.

Jim Lovering, the group's recently appointed chairman, called for the review following the bitter boardroom battle which saw previous chairman Simon Laffin rejected at a heated shareholder meeting in Birmingham earlier this year.

In January the rebel investor Piedmont said the survey should include the circumstances that led to the failed interest rate swaps of 2008 and 2009, which cost the company around £500m.

Since then the group has announced the departure of Jeremy Townsend, finance director, who will be leaving to join Rentokil.

At the time that the review was announced, Lovering said: „We will look at all aspects of the business: the number of brands and their positioning; the efficiency and allocation of capital expenditure; and the level of overhead costs within the business.

"Together we can build upon Mitchells & Butlers' position as the leading managed pub company."

Analysts have suggested cost savings of £15m to £25m could be achieved at the group as a result of the review.

Just prior to the shareholder meeting which saw the departure of Laffin, M&B had conducted another review and said it planned to concentrate on six core brands going forward.

In a presentation to analysts the company said it would drive organic site growth through Crown Carveries, Harvester, Premium Country Dining, Sizzling Pub Company, Toby Carvery and Vintage Inns. The six growth-driving formats, which currently account for 900 of M&B‚s 2,000 outlets, would be grown by at least 50%, if not 100%.

It is not known at this stage if the company will maintain this stance.