Inventive thinking

Inventive Leisure, which operates the 38-strong Revolution vodka bar chain, is the latest high street operator to become the focus of consolidation speculation - albeit not for the first time. Reports earlier this week suggested former Yates Group chief executive Mark Jones and his former finance director Colin Rowlinson had spent £500,000 building a 2.6% stake in the business.

Since selling Yates to the rapidly expanding bar empire of property tycoon Robert Tchenguiz - a deal thought to have netted the two men more than £3m - they have been busy working with private equity group GI Partners on potential leisure sector management buy-ins.

Inventive, however, is almost certain not to be their target. The Vodka bar group's chief executive Roy Ellis and his management team already control about 40% of shares and have been out in the market vacuuming up more in recent months. For Messrs Jones and Rowlinson this looks like it may be a punt on Mr Ellis linking up with a private equity backer to take the business private.

Meanwhile, someone else thought to be looking at Inventive is Bob Ivell, executive chairman at Regent Inns, operator of the Walkabout bars and Jongleurs comedy clubs. The group, which is still regarded by some as a potential target itself, this week had a mainly paper takeover approach for Urbium, operator of the Tiger Tiger chain, swiftly rebuffed.

Mr Ivell is known to be seeking a third brand to roll out through Regent, and some industry insiders suggest Revolution would be a better fit than Urbium's venues.

Having run Scottish & Newcastle's giant pub business before it was sold to Spirit Group two years ago, the big-thinking Mr Ivell is also running Regent's rather ambitious slide rule over troubled Luminar's Jumpin' Jaks and Chicago Rock business and the privately owned Barracuda chain, both of which are up for sale.

Shares in Inventive, which peaked at more than 200p three years ago, yesterday closed up 1.5p at 96.5p. They remain, as they have done for 18 months, no further advanced than the price at which the business floated four years ago.

Meanwhile, blue chip stocks had a strong day, in the main, with the FTSE-100 up 24.9 points to 5,035.5 - its highest level since March 10. A forecast tropical storm brewing up in the US gulf is feared likely to disrupt oil and gas production, prompting a run on crude oil prices. As a result, BP gained 9.5p at 573p; Shell was up 7p at 491p.

Reuters gained 7p at 407p after analysts after JP Morgan and ABN Amro both warmed to the stock, raising their third quarter forecasts and setting target prices of 450p and 455p respectively. Scottish Power also rose on the back of analyst comment, closing up 13.75p at 478p. Merrill Lynch noted the company was looking like an attractive bid target following the disposal of the group's Pacificorp subsidiary.

Two high-profile director-related share dealings also attracted some attention. At Wm Morrison, up 3.5p at 181p, it emerged that Sir Ken and his wife, Lynne, had recently bought 2m shares in the company, partly through trusts. Elsewhere Manchester United chief executive David Gill revealed he had exercised options over 11,500 shares and sold them to Malcolm Glazer, who controls the club. Finance director Nick Humby also exercised his options and sold out to Mr Glazer.

Retail jeweller Signet rose 1.5p to 105p after the retail jeweller posted a 7% increase in first quarter profit before tax. Like for like sales for the group were up 3.3% as a strong performance in the US offset poor trading conditions in the UK. Analysts suggested the group was likely to benefit from the recent strengthening in the dollar.

Among the days few disappointments,GW Pharmaceuticals, the cannabis-based medicine developer, plunged 25p to close at 70.5p, making it the largest faller on Aim, after a regulatory setback yesterday increased the likelihood that it will have to return to investors in search of a cash injection some time in the next 12 months. The group said UK regulators had dismissed its appeal in relation to its experimental neuropathic pain relief drug Sativex. The regulators are demanding more data from clinical trials, which is not expected to be available until next spring.

Failure to get regulators on side means GW will not get a much needed £14m milestone payment from development partner Bayer. The blow may prompt GW to seek licensing of Sativex in Europe or to renegotiate terms with Bayer, but, in any event, analysts are expected a cash call at some stage.

E2V Technologies was up 11.5p at 207p after announcing a £14.3m contract to supply imaging technology to the European Space Agency for us on the GAIA satellite.

Dicom was up 11p at 955p on rumours that it was about to clinch at administration contract helping provide social services in the US.

Emblaze rose 8.5p at 167p on yet more rumours of an imminent deal to design and supply white label handsets.

Minicorp gained 0.5p at 1.25p after director Jonathan Malins announced he had acquired 5.6m shares, or almost 5% of the business at 1p a share. This has almost doubled his stake, taking it close to 11%.

Fuller cheer

London brewer Fuller, Smith & Turner saw a 5% rise in sales at its 20 pubs in and around the City, which traditionally generate more than their share of profit for the group in good times - and can prove a drag when times are tough.

"We've had three years where the City has been hard work and this is the first year in which confidence is really beginning to return," said chief executive Michael Turner. He added that the group was seeing no sign of the much talked about consumer slowdown.

Douglas Jack, an analyst at Panmure Gordon, said there was plenty of potential within the group. "Fuller's intention to double the size of the pub estate could generate material shareholder value by reducing the cost of capital and enhancing earnings," he said, reiterating a hold recommendation but hinting at the possibility of upgrades.

James Wheatcroft, of Investec, also gave a hold recommendation, scratching out his previous buy stance following a run on shares. With much refurbishment already done, he noted, the company should continue to make gains comfortably on like-for-like sales. Shares closed down 30p at 912.5p.