Bets on at Ladbrokes
Nigel Hicks, an analyst at Liberum Capital, supplies a neat take on events at Ladbrokes. He points out that Peter Erskine, formerly of O2, has had “an interesting start” since he became chairman of the bookmaker last year. “Just nine weeks after his relatively upbeat and supportive interim results comments about the company’s management and prospects, there was a material profit warning, dilutive rights issue and final dividend cut. Chief executive Chris Bell is leaving, with possibly further changes to come.” So what does it all mean, Nige? “We expect private equity, or maybe from left field, PartyGaming to have a good look at Ladbrokes.” Ladies and gentlemen, place your bets.
The show must go on
The appointment last year of administrators at Regent Inns and its rebirth via a pre-pack as Intertain was no joke for the comedians owed money by its Jongleurs clubs. But performers have not been left out of pocket: all comedians have now been paid in full by Intertain. It could be argued that the company had little choice: although it has lost the rights to the Jongleurs name, it plans to continue running its remaining venues as comedy clubs under the name “highlight” — which would have been tricky without any acts.
Firmdale’s knight in shining armour
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Firmdale Hotels, the boutique operator run by Tim and Kit Kemp, has scrapped plans to raise £56 million via a sale and leaseback of two of its London hotels. The money was to have funded the purchase and redevelopment of Ham Yard, a site in Soho, as a flagship hotel. Just as Firmdale was set to exchange contracts, it was approached by Axa, on behalf of The Co-operative Insurance, with an offer to pay the £27 million purchase price on Ham Yard and fund the £60 million development. Firmdale has agreed a 125-year lease.
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Mark Brumby, veteran leisure analyst, is leaving Astaire Securities to set up his own research and consultancy firm. Although Brumby is not saying anything until he has left, probably in mid-March, fans of his daily e-mail, containing an entertaining mix of industry news and anecdotes about his chaotic private life, should not despair. I understand that Langton Capital, named after his house in York, will continue to send out the missive alongside pertinent research.