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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Marstons - Explosion in ‘superpubs’ transforms prospects

July 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MARS
  • Price:
  • 166p
Shares in Marstons, which operates 1,632 pubs across the country, have enjoyed a decent run as investors bet that higher employment and rising disposable incomes will deliver a boost to trading and after speaking with finance director Andrew Andrea, we are convinced they have further to go. The company has virtually completed a painstaking program of selling its worst performing “wet led” tenanted pubs and used the proceeds to fund larger new build superpubs, which generate over half their sales from food and are able to generate a whopping £400,000 profit. With management planning to open 25 each year (from a base of around 100), we expect Marstons to achieve strong growth in the years ahead.Broker Numis expects ...

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