Stonegate, Punch - comment

Mitchells & Butlers' trading update bodes well for Punch and, in particular, Stonegate, which is expected to release its report tomorrow. The restaurant and pub operator, including branded chains like All Bar One, reported LfL sales of +4.5% for the 15 weeks to 10th of January. The Christmas period was strong, and the period between Christmas and New Year’s was apparently even stronger, generating combined LfL growth of +10.5%. As a reminder, Stonegate’s Apollo financing on the L&T-dominated Platinum vehicle becomes callable this month, and management are looking for a transaction.