Friday newspaper round-up: Marston's, Aviva

16th May 2014 07:31

The economic recovery has made it to the country's pubs. Unlike some of the other big operators Marston's does not enjoy the benefit of a southeast bias. Nevertheless, it saw first half sales at its taverns rise by 3.8 per cent, apparently as a result of a genuine economic recovery, while its food driven estate registered an increase of 5.7 per cent. Furthermore, had it not been for the accelerated disposal of some 202 pubs last autumn the firm's pre-tax profits would have grown by 18 per cent, instead of increasing by 9 per cent to 29m pounds. Throughout these past few years the company has been moving away from drinks-led boozers towards building or converting into food-driven family pubs. Those sales were a good idea, but they entail lower income until its new estate is up to speed. Yes, its sales in April comfortably exceeded the industry average. However, on about 12.5 times' earnings there is no pressing urgency to buy. Hold, writes The Times' Tempus.Insurance group Aviva Chief Executive Mark Wilson has been cutting back on a bloated cost base and leaving markets such as the US and South Korea, given that they do not offer sufficient growth prospects, focusing instead on the likes of Poland and Turkey. As well, the value of new business (VNB) written grew by 13% across the group just as the flow of restructuring expenses dropped off by almost two thirds over the past year. However, VNB in the UK dropped by 22% hit by weakness in the annuities market even before the last Budget. The company also took hits from the Polar Vortex in Canada and flooding in Britain. All in all the first quarter numbers were a mixed bag, although the trends are going in the right direction. The shares have performed very well over the past year, but until Wilson can provide more certainty and clarity on how fast he can rebuild the dividends again, there is "not a lot to chase", writes The Times' Tempus.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB