3 September 2013 – trading update
A full year trading update covering the 52 weeks to 17 August 2013 has been released. This is very encouraging, with core estate net income up 0.4% in the fourth quarter. Average net income per pub also rose by 1.5% in the 52 week period and 96% of the core estate is let on substantive agreements (2012: 94%). Underlying EBITDA is set to come in at between £210m and £220m, so there us clearly scope for a significant uplift in the company’s valuation if changes due to be made to the capital structure are completed in favour of shareholders. With this in mind we keep our SPECULATIVE BUY rating.