We believe that Marston’s is among those companies likely to benefit from the World Cup. Management estimates that every England match is worth £0.25m in turnover, and the tenancies, with their high concentration of community locations, should pull in extra business. But it would be imprudent to upgrade ahead of the election.
GREG FEEHELY | ALTIUM SECURITIES
While we are not changing numbers we feel there are a number of positive tailwinds. The likely positive impact of the football World Cup (like-for-like sales increased by around seven per cent during the 2006 tournament). We are also comfortable with our current one per cent rise in full-year managed retail like-for-like sale assumptions.
MARK BRUMBY | LANGTON CAPITAL
In a statement containing no surprises, Marston’s has delivered a solid performance against a difficult backdrop. Both revenues and margins are improving, the new build programme is on track and debt and cashflow are in line. The election, a possible second budget, the potential for job cuts in the public sector and tax and interest rate rises as well as the expected positive impact of the World Cup make forecasting somewhat difficult. The group’s rating, and the fact that the trading statement should reassure investors, inclines us to the view that the shares remain attractive