Yesterday’s news that the Government is to introduce a statutory code and adjudicator into the pubco/tenant relationship had little impact on the movement of shares among listed pub groups that operate tenanted and leased outlets.
Enterprise Inns’ share price fell 1p to 135p and Greene King’s declined by 4p to 858p. There were marginal increases for Spirit, up 0.75p to 77.5p, and for Punch Taverns, which closed up 0.25p to 10.75p. Marston’s was flat at 150.75p.
The biggest gains were for Fuller’s, whose share price grew by 17.5p to 980p, ahead of its full-year results announcement on Friday. The share price of Young’s fell 5p to 1077.5p.
Yesterday leading analyst Geof Collyer of Deutsche Bank said the Government’s proposals are “good news in the long term” for Enterprise Inns, Marston’s and Greene King.
Collyer said the announcement “should bring the regulatory and back bench committee investigations dating back to 2003 to an eventual close”.
“Assuming that the proposals make the legislative calendar, we see this as a better outcome – having the uncertainty resolved now – rather than having the review hang over into the next Parliament.”
The Government fell short of demanding that pub companies offer a mandatory free-of-tie or market rent-only option.
