pub business sale21 Jul 2021 16:11
Yes its about time we had some news on this. I still don't see any sense in disposal of the pub portfolio which should provide a strong income stream post Covid and reducing risk by providing an additional asset class to the core convenience retail business plus realisation of development potential on surplus pub land. No doubt that many investors, as I have done, have bought the combination of convience retail and community pubs so that NRR without the pubs seems nothing like as attractive as NRR with the pubs.
Disposal of the pub portfolio does not bode well for either profits/dividends or nav/ share price. and fixed running costs on a reduced turnover base will put pressure on margins. BoD needs to be open with shareholders on their thinking behind this and make a very good case if the shareholders will be persuaded to support the pubs disposal.