City Diary — 20 May

Luminar leader takes new tack​

After years of unbroken power, at last there's a fresh start with new leadership. No, not the Government, City Diary is talking about nightclub company Luminar. What does new boss Simon Douglas make of the company he's now leading in the wake of the departure of long-serving chief executive Steve Thomas. He talks of the need to "build on fact rather than intuition and developing a professional rigorous methodology".

Is this a veiled criticism?

"I couldn't possibly comment," says Douglas.

"I don't have Steve's vast experience," he adds, referring to the need to gather as much external research and insight as possible before making investment decisions.

Taxing time with the tax man​

One curious item in the Luminar accounts refers to discussions between the company and Her Majesty's Revenue & Customs in respect of tax liabilities dating back to, er, 2004. The balance sheet includes a liability of £42.8m potentially due to HMRC, "which remains under discussion". Finance director Robert McDonald said Luminar had done

a "good job" over the years in minimising its tax payments.

Sitting in gutter, looking at stars?​

Luminar's share value sits resolutely in the gutter. One City analyst, once a fan of the company, has a hold recommendation in place despite trade worsening

in the past 10 weeks. "They are at option value anyway," he explains.

Another Puncher joins Admiral​

Punch operations director Kevin Georgel is leaving to become managing director at Admiral Taverns, where former Punch strategy director Jonathan Paveley is chairman. Both live in Cornwall and used to share a car home after a working week at Punch's Burton HQ. Presumably, there are travelling expenses to be saved now with joint journeys up to Admiral's north-west headquarters.

Happy host bigs up Greene King​

It's always nice when people are appreciative, isn't it? City Diary spies were sitting in reception at Greene King's Bury head quarters when a licensee popped in on the off chance of a meeting with chief executive Rooney Anand — to thank him.

It turns out the licensee, who runs a pub in Mildenhall, had previously challenged Anand to spend some capex on his pub. The investment had duly been forthcoming — and the licensee in question wanted to hand-deliver an invite to the reopening.

Old flash of fame for Christie+Co​

Agent Christie+Co is celebrating its 75th birthday. The company has issued a press release recounting many of its most notable transactions. It also reveals the company's link to the UK's most famous piece of nudity. Turns out Erica Roe, who performed a famous streak at the England versus Australia rugby union international in 1982, was at the match as a guest of the company.

Karren Brady wows BII guests​

West Ham vice-chairman and Junior Apprentice star Karren Brady impressed attendees at last week's BII annual lunch with her no-nonsense style. She had a welter of stories to amuse. One concerned an old-school business executive who explained his personnel policy with the acronym FIFO — "fit in, or f*** off". Nice.

Tuppen on debt and Scotch eggs​

Enterprise chief executive Ted Tuppen was telling City analysts last week that the company's performance was stabilising. He was keen to remind City analysts they used to think debt was a good thing. "I'm fed-up of being referred to as 'debt-laden'. We think it's great — you used to think it was great. Our debt is very tax-efficient." Earlier Tuppen turned his attention to more prosaic matters — which pub in the UK serves the best quality Scotch egg. "If you want Michelin-starred Scotch egg go to the Harwood Arms, Fulham — you will get the best Scotch egg in the land."

Beer rationing for Castle Rock​

Castle Rock Brewery directors have come up with a novel scheme to preserve stocks of the brewery's flagship ale, Harvest Pale — they have taken a vow not to sup a drop of the award winner until their new brewery is in operation in July. So great has the run on stocks of Harvest Pale been, Castle Rock's 20 pubs have been advised that supply will be rationed and may run out on occasions while work continues on the new brewery in Nottingham.

Output will then be tripled with the new £600,000 plant upping output to 330 barrels a week. In the meantime, stocks are low and demand is high. Commercial director Colin Wilde is one of the honourable abstainers. "This is a small price to pay for customer loyalty. And this decision for directors to drink other beers will really focus our minds on getting the new brewery open on time," he says.

First Restaurant hatches more hybrids​

Few better examples of the merging of pub and restaurant operator than First Restaurant Group. It runs New York deli chain Harry Morgan and the trendy Notting Hill Brasserie. It also has three Enterprise Inns sites in London: the Ebury in Victoria, the Running Horse on Davies Street, off Oxford Street, and the Waterway in Maida Vale.

City Diary hears that the company is about to sign up for two more Enterprise venues in London — two Auberge sites formerly run by Massive Pub Company.

Creating a dialogue with critics​

A Wetherspoon regular ticks off founder Tim Martin in the company magazine for spouting off on the subject of politics: "I'm disappointed to keep reading your ongoing political rant at the government." Martin prints the letter and comes back with a robust response: "If the Government introduces crazy rules that affect our business, which happens to be pubs, we surely have to comment. If we don't who will? It's interesting you don't say that the points I've made are wrong; you just say that I should keep quiet about them. That's not how democracies work — speaking up is how improvements get made in society."