Monday morning business bulletin

May 19 2008 By Andrew Mernin

Embattled pub group Mitchells & Butlers is considering switching to a more tax efficient business structure as it seeks to get the firm back on track, it was reported today.

It is thought the All Bar One and Harvester owner will outline plans to look at adopting Real Estate Investment Trust (REIT) status tomorrow as part of a revival strategy due to be unveiled.

M&B launched a business-wide review after losing £274 million last year on a failed property deal.

Reports also suggest that M&B will announce the appointment of up to two representatives of investor and property billionaire Robert Tchenguiz to its board alongside interim results tomorrow.

Irn-Bru and Tizer drinks maker AG Barr was on confident form today as it said trading so far this year had beaten the soaring sales seen amid last year’s April and May heatwaves.

Chairman Robin Barr told the firm’s Glasgow annual meeting that revenues in the 15 weeks since the end of January had exceeded 2007, despite tough comparisons with the glorious sunshine last spring and early summer.

Mr Barr said: ``This is a particularly positive performance in light of the excellent weather experienced during April and May of last year and reflects the continued progress being made across our portfolio."

He added: ``Trading conditions are competitive across the soft drinks category but we remain confident at this early stage that we are on course for another successful year."

AG Barr’s brands also include Strathmore water and Orangina, which is produced under licence.

Commodity stocks made early gains today as the London market began the week on the front foot.

Higher metal prices gave a boost to mining stocks while crude oil above 126 US dollars a barrel helped the likes of BP and Royal Dutch Shell.

With a strong finish in US markets on Friday also influencing traders, the FTSE 100 Index was 16.7 points higher at 6321 an hour after opening.

The leading performer was Kazakh miner Kazakhmys, which also benefited from a Credit Suisse upgrade to rise nearly 6% or 107p to 1940p.

Other strong performers were Vedanta Resources and Anglo American - up 66p to 2627p and 81p to 3621p respectively - as the sector littered the risers’ board.

The pound at 9am was US$1.9571 compared to US$1.9579 at the previous close while the euro at 9am was £0.7971  compared to £0.7964 at the previous close.