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The announced redundancies seem to be making headline news from this latest report, completely overshadowing the Carlsberg JV. Personally, it seems like a great opportunity for those that missed out on capitalising before the previous JV announcement to make some real gains over the next 6 months. Just 41p right now.
same thing happened to the likes of Mitchells and Butlers and Restaurant Group etc.
By Christmas expect this to be in the twenties, but then so quickly into the forties again.
The timing of this depends on the vaccine.
Probably get the bonus when the JV completes at the end of the month. Carlsberg don't hang around. CMBC may have news at outset as will be well ahead of themselves after CMA delay.
Trent
I largely agree with your post, but what bothers me is what is NOT said, e.g. off sales up 23%, but what was the profit margin on that I wonder? Without pubs to service every brewer was surely offering attractive prices to supermarkets, let alone Amazon ? Turnover is great but profits are what we need.
I see no guidance on margins.
Debt down, great, but last time I looked at this debt the company were using derivative instruments which seemed to be expensive to pay off early so the company were unable to take much advantage of the low interest rates prevailing then & now.
Hopefully there will be a guidance as to property values in the final accounts as that is surely critical to the value of our company. I guess we must expect to wait until their is some clarity as to what prices licensed premises are fetching before we see a full revaluation once the dust has finally settled?
On the upside I think MARS have managed very well in lockdown with their cash flow & their like for like, both much better than I was fearing.
I see no mention of the "bonus" that the PR lady mentioned in her final post we could expect in this update.
I suspect that my local Marstons will be one of the casualties. They have never done food so daytime trade has always been limited and profitable times appeared to be Friday and Saturday nights when it would be rammed which obviously no longer happens. I don't use the place these days as I don't like the beer but I had some of my first underage pints in there. It was not the police you had to watch for but school teachers. It caused difficulties bumping into your geography teacher in the toilets. Especially as in those days they still had corporal punishment in schools, you would spend the weekend wondering if you would get a call to report to the headmasters office on Monday morning. Happy days.
Good grief srostron, this only got into the 130p when the company was paying a handsome dividend.
Greatcrested.......correct. The statement is nothing more than most expected and so far the Market is not impressed. Maybe wrong but on further digestion of this RNS, do'nt be surprised if the SP goes lower.
The statement leaves many questions which will only become clearer once Yr end accounts are released in December. An item which should be of significance even though debt reduction has increased basiscally due to the sale of Pubs to Admiral, we are yet to know how the sale will reflect in the Estate value. One suspects on we know ( the Pubs were sold at a con siderable discount to Book value)
Further evaluation of the statement is ongoing.
AIMO
This should recover quickly to 50's this week and 60's next week. Once we have low cases and the curfew is gone it will be back at £1+ then climb to £2
Nothing there I didn't really see coming to be fair. Pub revenue down because of lockdown, off -sales up. This was nowhere near as bad as I thought it might have been.
Don’t forget the merger isn’t done yet! Any day soon there will be an announcement and up it goes again. This time I think 65p. I’m not selling my shares.
Did you lot get a different RNS to the one I read?
I hope it goes well for you all today but one which I shall be watching from the sidelines as I sold at 50p somewhat expecting this.
The retail sales were exceptional, the offsales were strong too
I concur, growth and reduction of debt. Although no one knows what the government’s next move will be and how this will effect business things that are certain is Non-pub sales are exceptional in areas locked down and the JV will certainly bring in cash and make this business more attractive. Hopefully the market see’s the positivity here. GLA
Exactly as predicted
Steady as they go
Not bad at all, I was expecting much worse!
Very positive news and a good read. Let’s see how the market reacts.
Not the greatest nor worst
https://www2.trustnet.com/Investments/Article.aspx?id=202010150700021211C
Back to 50p will be a massive surge in my book Investingnewb, but a welcomed one for sure.
It is exciting when you know news is coming out and your unsure on how it’s really going to go, but you have a feeling it will go your way ????
The bonus could well be the £273 million, that Marstons are to receive as a payment upfront from Carlsberg, when the JV deal is signed.
The past results for the last 53 weeks up to Oct 3rd, won’t look good compared to previous years and it is already out there that the JV has been given the green light, so nothing really there in that.
BUT.... If the results do show a positive forecast and a big talk up on the JV and the possible revenue boost for Marstons, I can see a possible jump to 48p.
Let’s hope the results are positively received by the market. GLA
I personally think it’s going to be some positive news with the announcement tomorrow but I’m very unsure what this additional bonus could be that was talked about. Just wanted to say thanks to the response also on my prior messages from fairdealer, barchid and supercharger. I think this is definitely going to be a strong one for holding with the new deal! Although I think it will be positive results tomorrow though I don’t think we’re going to see a massive surge! I think we could be looking at being back to 50p again and slight increase at the end of October when it’s officially signed off.
Interestingly in line with what the Marstons press office told me a few weeks ago, Morning star have the final results being published on 25th November and they are as we know the adviser/notifier for the LSE. So perhaps Proactive investors have wind of an earlier update but I cannot see it officially published anywhere? Good luck to those braver than me!
I can see off sells being very good but pub sales must be down on last year, but lets face it better than when the last results were published earlier in the year during the pandemic. I regret that we could still have a full lock down with the numbers growing and I feel I will wait for further news. I was told a couple of weeks ago the full results would be published on 10th December so I will get up early tomorrow to see whats happening being safe.
Crucial is that Marston's brewers have done good off sales as this will carry forward and confirm income from the 40% in the future.
Demand for country property is up post and during covid if they sell off the estate.
My opinion is that not only do these earning reports detail the results from the past, they always project a future earning forecast and business outlook. With the JV now highly likely to close this month the future outlook will be significantly enhance with the additional funds the JV will bring. This should be seen in a positive light by the market and I believe the SP will rise tomorrow. It therefore could be the last chance to buy in at these levels before the deal closes and the SP rises significantly. I could well be wrong and this is just my opinion. For this reason I’ve opened a position here. Should it dip tomorrow then I’ll just be holding tight for when the JV deal closes. GLA