(arrgh - lost my first finished effort! here is a rewrite)
Strong trading update this morning from Pubs operator Young & Co's Brewery (LON:YNGN) . Managed pubs which account for c85% of Group profits saw LFLs of +5.6% for the first 13 wks of the new financial year. Total group sales rose 8.3% after adding in the effect of acquisitions
This appeals to me for 3 reasons
1. Strong absolute LFLs: +5.6% is attractive in an absolute sense, especially compared to inflation of say 1%. there is a London bias to Youngs but nevertheless this is still a good number.
2. Strong Relative LFLs: compare this to more national chains like Punch, Greene King and Restaurant Group, which are all seeing relatively subdued trading.
3. Strong multi year trading: the +5.6% for Q1 is on top of the last 3 years of annual LFL trading of +6%, +5% and +6%. So Youngs is producing strong trading on top of already inflated trading numbers. This is no dead cat bounce.
So the company is trading on 16x PE March 2016, 15.2x 2017, dividend yield 2.1%, P/TNAV c1.1x on a market to market basis. I think this remains attractive.
I bought the Non Voting £YNGN shares, which rank pari passu with the A Shares in all respects apart from the ability to voting AGMs and on takeovers etc. I wrote the company up in more detail earlier in the year: http://www.stockopedia.com/content/young-amp-co-qu... and I feel my analysis still stands, apart from the fact the shares are c20% higher in value.
VegPatch
