Shepherd Neame (SHEP) offers a differentiated investment proposition with a vertically integrated brewing model and a mainly freehold pub estate. It has a strong brand heritage in markets in London and the South East, which are characterised by a growing and affluent population. The strategy is centred on being a premium hospitality business. It does this by focusing on owning the best pub estate, with capital directed towards refurbishments, and, where appropriate, food-led offerings and selective expansion of accommodation. This has led to a long-term improvement in the average pub's profitability, which has translated through to a steady increase in NAV. Weak investor sentiment towards the sector means this has not followed through to the share price, with prospective multiples at their lowest levels since FY15. We note the discount to NAV of 64% is the highest it has been, as is the dividend yield of 5.0%.Den vollständigen Artikel lesen ...
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