City Diary — 22 January

Punch share price under fire​

Some were expecting hostile questioning

of Punch Taverns executives by shareholders at the annual general meeting last week. In the event, there was no major shelling — more in the way of sporadic and light small-arms fire. Asked why the share price was

so enfeebled, chief executive Giles Thorley said that in recent times the company had resisted pressure to increase the level of debt, but admitted Punch had been behind the curve in bringing down debt. "We haven't done it fast enough," he said. "We need to get ahead of changing circumstances in the marketplace." Thorley

also told the AGM that the Punch share price was now bound to be volatile: "That is simply a function of mathematics."

Calming influence of notes to self​

At another high-tension event for Giles Thorley, some observers think the Punch boss radiated zen-like serenity as he gave evidence to MPs on the Business & Enterprise Committee, just before Christmas. City Diary hears that this might have been aided by a note that Thorley had written on the top of his jotting pad: "Keep calm."

Ex-drinks boss stays anonymous​

Guardian columnist Nils Pratley savaged tenanted pubcos in a recent article, as we reported in passing in last week's Leader. He quoted a former chief executive of one of the "biggest companies in the drinks industry" as saying: "The pubcos haven't spent more than 10 minutes in the past 10 years worrying about the consumer. They were pushing financial models. If you are doing financial engineering, it's bound to come crashing down at some stage."

City Diary calls Pratley to ask who this shadowy figure is. "He was at pains to insist that I shouldn't reveal his identity," says Pratley.

JDW to fill empty Woolies shops?​

With hundreds and hundreds of Woolworths lying empty on high streets around the country, might JD Wetherspoon sense an opportunity? Over to chief executive John Hutson: "They're fantastic sites, but on very full rents. Planning alone would be a mountain to climb. If there are no other takers, there may be opportunities some way down the track."

E-numbers high in Brighton clubs​

The Brighton Argus used freedom of information legislation to find out how many ecstasy pills the major Brighton nightclubs seized at their doors in 2008. Top of the vigilance list was the Honey Club, in King's Road Arches, which intercepted more than 1,000 disco biscuits during the year, plus 176 sachets of powder and 104 plant extracts. Yikes.

Selective blame over cheap beer​

Anyone else get cross with police getting uppity about low-cost booze in pubs? JD Wetherspoon's (JDW) offer of a pint of Greene King IPA at 99p has sparked a number

of condemnations by police officers around the country. In Crawley, for example, Jean Irving, licensing and public safety officer with Sussex Police, says she will be watching the situation "very closely". She said: "We take a dim view of people who sell alcohol so cheaply. Alcohol can be a very dangerous substance and those dispensing it need to be careful." Where are police condemnations when the major supermarkets regularly sell alcohol at less than half JDW's price per pint?

And from the opposite corner… ​

Deutsche Bank analyst Geof Collyer has a wholly different take on Wetherspoon's 99p-a-pint promotion: "We see the new deal as helping to protect revenues at the expense of margin — a long-standing JDW tradition."

Bluebird goes south in Crawley​

There's a limit to the trading alchemy that even a carvery can produce. Mitchells & Butlers' (M&B) Bluebird in Crawley, 400m from the MA office, was arguably the least lovely site in M&B's 2006 acquisition of 239 Whitbread pubs. It has a nice setting, but is a pug-ugly building with a car park the local authority insists on charging visitors £3.50 to park in. M&B plugged in a carvery offer that lifted takings by a lot. But not enough to make it economic. It's closing at the end of this month and will be put on the market.

Enterprise's top value valuations​

A big industry talking point has been how the value of Enterprise's pub estate rose by 1% in the year to September 2008, when others have been taking writedowns. Analyst Paul Hickman, of KBC Peel Hunt, has an answer after a meeting with Enterprise bosses. "Management defended the remarkable 1% rise in pub valuation by explaining that the valuers work on fair maintainable trade, which is taken to be across the economic cycle. So if part of this downturn proves to be permanent, it will take some time for valuers to reflect it in valuations." Got you.

Mortarboards for Luminar grads​

Nightclub company Luminar is set to notch up a first in the late-night sector. The first graduates from Luminar's management development programme, a foundation degree in leadership and management, will graduate later this month. Appropriately enough, there's a reception after graduation at Luminar's Oceana venue in Nottingham.

Titanic steams ahead against trend​

President of Society of Independent Brewers (Siba) Keith Bott, who runs Stoke-based Titanic Brewery, bucked the pub closure trend last year — by opening two more pubs. Employing 24 staff at its Lingard Street site, Titanic has boosted turnover from £100,000 in 1988 to more than £3m in its latest financial year. Following a £140,000 investment three years ago, to increase capacity, it now produces around 2.3 million pints a year. Director Dave Bott says: "Our drive to reopen pubs in north Staffordshire not only makes commercial sense, but is a commitment to the communities we serve."