Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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My view from a buy standpoint is MAB's offering is stronger then most other franchises with the likes of Harvester, All bar one and they arent selling £1.99 pints like Wetherspoons is. More of a premium/good food mix with drink offering.
The same cost impacts MAB face is the same as any other pub but in a better negotiating position like the larger chained pubs, i can see these guys eating up market share and picking up premises/independent pub volumes.
Understanding is the property portfolio they have is massive though the debt is no doubt an issue
Dont like the Odyzean setup too much and need to research this more closely, risk they takeover MAB on the cheap.
Personally visiting various pubs, MAB in my opinion is the best in terms of offering though even if they werent, i can see many of these independent pubs either closing down or getting brought out where chains like MAB can take over and run more efficiently ( better supply chains for food, consistent menus, drinks supplies, sharing general managers in areas rather then the 1-2 person owner drawing a salary from a single pub) etc.
This was 300p+ not so long ago, its the energy costs then the inflation chaos that has tanked this, some of the drop is definetely justified but if they can survive for 1-2 years at break even/just above, the next market cycle they will make strong profits.
New to MaB BB
Looks like the market has issues with the debt on the balance sheet , from last financial report
‘The Group continues to make pension deficit payments as agreed as part of the triennial pension's valuation with the schemes' Trustees at 31 March 2019, which showed an actuarial deficit of £293m. At the time it was agreed that the deficit would continue to be funded by cash contributions of c.£45m per annum indexed with RPI from 2016 to 2023. In 2024 an additional payment of £13m will be made into escrow, should such further funding be required at that time.
Debt
Following the adoption of IFRS16 in FY 2020, leases are now included in net debt. Net debt at the period end was £1,736m, comprised of £1,253m non-lease liabilities and lease liabilities of £483m (HY 2021 £2,013m comprised of £1,472m non-lease liabilities and lease liabilities of £541m)’
If we discount the lease liabilities / pension circa £3/4B
The net debt is £1.3B
Interim profits £50M
Energy costs up £150M
Anyone think this is a Buy ?
Appreciate any comments
Thanks
Are the property values of this not £2.4 billion plus alone?
I feel for MAB but no room for sentiment. I was debating getting in sub quid. Interesting to hear your thoughts, it has tempered mine further. I also think it'll dwindle lower. Could be happy hunting say in Jan..trick of course is predicting the bottom. Balls, cash, timing required in equal measure.
Im a potential buyer in the 50-70p range, will have to see how this one pans out. Way too high for now that is for sure
Sub £1 soon
Was expecting worse to be honest - no profit indication but the increase in energy / utility costs isn’t too bad but the sales figures are relatively stable:
Share price is a little cheap but not bargain in my opinion
Morning, Whats the debt position please
I understand the cost pressures a company like MAB will be facing but i still feel alot of these are temporary and will stabilise as all markets to, are we really not going to be going to pubs/restaurants in the future???
MAB has some of the best offerings out there in my opinion, prices will reflect the cost and it may be bumpy but will normalise a year or two for now and they will be back to making fat profits, business rents and rates i cant see spiking as governments need companys like these in town centres.
overall - there isnt a massive bull case for this but its definetly undervalued in my opinion.
Decided to sell at a massive loss today as I cannot see an end to the share price decline. Should have sold earlier but was hoping for a bounce that did not happen. Although long term it will probably come right, I can see a much larger drop coming with the constant economic bad news and the cost of living crises reducing disposable income. The World Cup will not give the usual boost as it is in the winter and sadly covid will probably be a problem again from October. The risks outweigh the rewards currently and so going with the gut feeling I had in March (see comment below) and getting out, albeit I was very slow on finally pressing sell
In my opinion this is a solid company . Ok you may have to wear a tin hat for another year but people always like alcohol and hence the share price will recover .
Is my last post still so funny?
Local Harvester, The Running Horse, has stopped accepting GIFT-Cards.
Just had my ONE4ALL Gift-card from grand-kids rejected.
Are all MAB companies rejecting certain Gift-Cards.
This post is so funny you need to get out more
Share price decline may be due to the fact that come 1st April no one will be able to afford to eat and drink in their pubs/restaurants
I'm surprised by the lack of chat too. It does look cheap to me. Results in Nov 21 were ok, shares looks oversold, not sure what's holding it back (outside of the current issues with Russia/Ukraine).
Barely any chat here.
What are people's current thoughts on MAB? I brought in at the peak crash however this has been drifting south over the last few months. This is mainly due to risk of Inflation, pressure on staff wages, lockdowns etc but still feels too cheap in my opinion given businesses like this are largely middle of the road in terms of consumer spend so can adjust prices and not feel highly negative impacts on sales.
Mine have now arrived also. Had to ask for them.
Had mine through 2 days ago with Barclays. However I had to contact them and request them (as I have every other year I`ve held them). Maybe its the same process with your brokers? Share price is looking strong at last, onward and upward hopefully.
Held via HL :-)
mine haven't turned up either. forgetting the vouchers though we have a good write up in the Sunday Times today-
2022 could be the year we've been waiting for since goodness knows when!
HL here - me neither
I still have not received mine, has anyone yet?
I emailed my II they said they have applied for it on my behalf and will have it sent to me.
Anyone received their 12 vouchers yet?