Companies: CPH    FSTA    PNB    SCA   

Consumers may be giving retailers a bad time, but Fiske has been pointing out that they do not seem inclined to deny themselves the pleasure of a meal or a drink out. Pubs, bars and restaurants are actually raising prices. Positive trading statements are the norm.

Private equity houses, entrepreneurs and acquisitive trade buyers are busy, attracted by cashflow now, undeterred by possible future problems from smoking bans, expensive licensing changes and high street competition. Asset backing means the banks continue to put up the money.

The sector remains vibrant, with new companies emerging to capitalise on changing consumer preferences – such as Sports Café, which is adding online gaming – and to cherry pick among the fall-out as the giants consolidate and break up the old commercial structures. Clapham House’s good management team runs some of London’s favourite restaurants, from Bombay Bicycle to The Real Greek (see page 26).
At the traditional end of the market, Pubs ‘n Bars, strong on community pubs, is protected from high street competition and offers a nice yield. Brakspear, family controlled and cash-and-asset rich, is one of the best property plays in the business. It could be worth as much as £10 a share. Fuller Smith & Turner is appealing and strong in brands, such as London Pride, and with eye-catching cash backing.