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Operating in an out-of-favour sector and miniscule in terms of market cap, Maypole is high risk. But the ‘countryside hotels with restaurants’ company, chaired by former Blacks Leisure high-flyer Simon Bentley and with renowned restaurants entrepreneur Alastair McEwen in the chief executive’s hot seat, is looking to create value by building a group of hotels with an emphasis on good, locally-sourced food and driving synergies across the estate.

Results for 2007, during which the company was successfully re-financed, revealed turnover of £5.2m (£3m) as extra sites were added as well as like-for-like growth of 5.3%. Pre-tax losses of £213,000 were after exceptional costs, while operational profits increased to £420,000, over three times those for 2006, as management began to work its magic.

Three hotels were added last year, namely the Wayford Bridge Hotel on the Norfolk Broads (acquired for £1.95m), The Bridge Inn in Acle (£300,000) and the Suffolk-based Angel Hotel (£400,000). Together with the post-year end acquisition of The Pear Tree (£305,000), Maypole’s portfolio is seven strong and further targets are under consideration.

Hitherto, trading has remained robust, despite the credit crunch sapping discretionary spend and a challenging beer sales backdrop. Moreover, Maypole reports rising demand for eating out in pubs, in the wake of last year's smoking ban, while its focus on higher quality food menus commands local loyalty. Although like-for-like sales in the first quarter of 2008 were ‘marginally below expectations’, Maypole offers a canny play on management’s sector nous. A speculative, rather than a firm, buy.

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Maypole Group	AIM	£0.81m	0.50p	-0.05p
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