31 August 2016 – year end trading update
The company has issued a positive trading update for the 52 week financial period which ended on 20 August 2016 confirming that trading has been in line with expectations. The group has seen continued growth across a high quality pub estate with average profit per pub across the entire estate up around 4%. The group has strengthened its balance sheet with nominal net debt reduced by £225m during the year (16% of the total) helped by the asset disposal programme. The strategic disposal programme is now complete and further progress at the group seems likely during the current financial year. Although the company is operating in an unloved sector of the market we believe that there is scope for further share price recovery over the medium term – after all, the share price was 200p two years ago. LONG TERM BUY.