A revaluation of the estate at pubs group Marston's is helping underpin confidence in its prospects, which has helped spur a strong share price rise since our tip.
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Following the revaluation of the pubs estate at £2bn, broker Shore Capital calculates that the net asset value associated with pubs held outside the company's debt securitisation stands at about 100p per share. This strong asset backing, coupled with relatively low levels of debt, helps underpin a growth story based on Marston's strategy of building high return new pubs in leisure parks. Twenty five such pubs have been built in the financial year that Marston's is due to report on next month.
