In Questor’s view it should not be beyond the wit of the City to come up with a way round this problem. Services such as the one Young’s used are a good start but we would like to see timetables for private shareholders of several days, so that they have the chance to read about fundraisings in newspapers, for example, do a little research and devote some time to deciding whether to take part.
On a more positive note, Young’s plans for the money it raised go beyond simple survival of the crisis and reflect its ambitions for the years ahead. It said it would use the proceeds of the fundraising to restart investments in its pubs estate as well as strengthen its balance sheet.
“Continued investment in our estate enables industry-leading growth,” it said on Wednesday. “The proceeds from the placing will allow the company to restart such investments once our estate reopens. In the medium term, the company expects to continue its investments at a rate of about £40m per annum in the medium term, with a targeted return on capital deployed of no less than 15pc.”
It added that some of the money could also be used to “pursue opportunistic acquisitions”.
Questor says: hold
Share price at close: 745p