Punch Taverns shares improve with new CEO appointment

Punch Taverns (LON:PUB) has benefitted from the re-shuffle at the top at Marks & Spencer (LON:MKS) with former M&S Group Finance and Operations Director Ian Dyson taking over as the pub group’s CEO – a move that has excited investors and put the firm’s share price over seven per cent up today.

Rob Hull
shareprices.com - Thursday, May 06, 2010

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Punch Taverns has appointed Ian Dyson as CEO

The pub group has been at the peak of the FTSE 250 risers chart all morning with the share price reaching a high of 91p so far today, up six pence or 7.59 per cent, and is one of the most popular stocks of the day.

Dyson’s new position as CEO at Punch was announced by the group yesterday following the departure of Giles Thorley at the end of March after the group announced a fall in earnings to £225m from £275m in its interim results statement for the 28 weeks ended 6 March.

Dyson’s employment has encouraged investors although he now faces solving Punch’s £3bn debt pile and the ongoing impact of the smoking ban, increased taxes and duties and competition from other pub chains and supermarkets.

But with Dyson out to prove his worth after being beaten to the CEO role at M&S by former Morrisons (LON:MRW) chief Marc Bolland, and a strong background in driving operational performance in previous roles, the share price for the group has soared.

Investors might also be cheered by the reported pub sell-off by Punch to recuperate some of its debts.

According to reports, the group is set to sell off more than 30 of its pubs in an attempt to raise £36m.

The sell-off news follows suite with pub chain competitor Mitchells & Bulters (LON:MAB) which the Telegraph said on Tuesday was planning to raise around £500m by selling off a number of its drink-focussed pubs to concentrate more on the restaurant market.

And with another of Punch Taverns’ main competitors, JD Wetherspoon (LON:JDW), ringing alarm bells yesterday with their latest interim statement reporting a like-for-like sales dip in the third quarter of 0.8 per cent, Punch’s shares have appeared more appealing with the appointment of Mr Dyson.

Peter Cawdron, Punch Tavern Chairman, said: “Ian brings a great combination of strategic, operational and financial experience having worked in some of the UK’s leading businesses.

“These skills will be invaluable to Punch’s future development.”

The share price is currently up 5.75p at 90.75p,an increase of 6.76 per cent.

 

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