It’s been a calmer week in the equities market after recent strong gains, but both the M&C20 and FTSE All Share indices still managed to post modest increases to continue the upward trend.
The M&C20 Leisure Index was up 1.3% to 1,135 – ahead of a 0.6% gain for the FTSE All-Share – thanks in no small part to a near 10% share price increase for Spirit Pub Company. Its stock continues to be fancied by analysts, who, following a site visit his week, said they were impressed by the growth potential of the group’s managed house concepts and the returns being generated from investments in the leased estate.
Greene King’s shares advanced 2.3%, continuing the straight-line growth they have enjoyed since mid-June, since when they have rocketed by 16% from 750p to 870.5p, driven along by a stream of positive research notes on the company’s prospects.
London pub companies Fuller’s and Young’s (up 3.2% and 3.0% respectively) have both been enjoying the weather and the trade uplift it is bringing in the capital. An article in Investors Chronicle this week said: “However, it isn’t just location that has pushed [their] PE ratios. In short, the London pub groups have been consistently better run, as well as benefiting from consistently rising property and land values. In addition, with an average debt gearing of only 42%, both companies have avoided using their balance sheets to finance a massive expansion.”
