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Do you know what "profit", "debt" and "interest rate" mean?...
Marston SALES results have exceeded expectations (when you consider the drinks partnership brewing growth has also not been added in). So not only have they exceeded sales growth on M&B but also have another Brewing arm up their sleeve.
Could it not be that anyone who had taken out shorts on M&B was buying them back and hence the price increase? Marston was not shorted at all when I last looked at short tracker.
However this sector is coming back for M&B, Marston and Whitbread and the fund managers in time will find us!
Yes, the board might be more open to accepting a takeover offer than it was 2.5 years ago - I would not be surprised if we get sold at 100p per share in 2 months (IIRC that was the highest figure rejected in February 2021?!…).
Same sector,drinks and hospitality,marstons release good news,share price goes down,m&b release similar news,share price rockets,there seems no other reason but marstons debt,
MarketWatch and Reuters are just news organisations. All they are doing is reporting if something went up or down post results. They employ low level staffers to write those articles. Do you seriously feel the need to put Reuters name in quotes after it has been around for 170 years ?!
Would expect another takeover offer to come soon while the price is here.
based on the assets the company should have a valuation of 180 a share!
Available here:
https://www.proactiveinvestors.co.uk/companies/news/1021763/marston-s-impresses-as-pubs-remain-resilient-1021763.html?viewSource=TwitterUK
Appears "Market Watch" and "Reuters" over in the States all promoting Marston now with good feedback to the Marston results. Even "Hospitality Ireland" are pushing them on "high summer sales." We also still wait finalised figures from the actual brewing Company shared under Carlsberg in the UK where figures are likely to have increased too. However most are awaiting the Feds decision due 2pm ET. So 7 pm in the UK & I would expect a mark up later in the week on raised sentiment. Therefore still a very good time to buy the stock at todays prices. GLA.
On 22 June i did that trade - shorted MAB at 214 and bought MARS at 28.7 - I see no reason to close with Marstons at 31 ish
I will look into that idea.It sounds a good trade....
I don't get the extend to which MARS has underperformed the likes of MAB which shares much the same customer base and is also struggling with debt, having a going concern warning and a refinancing coming up in Feb24. Maybe a decent pairs trade. I'm short MAB, no position here.
One thing is for sure,this company is profitable and well run,with great prospects.and 33p is totally unjustified.150p sounds more realistic!!
Pro-active in favour and reports Shore Capital have raised their share price target for Marston to £1.50. Nice -
Andrea added.
Shore Capital Group (LSE:SGR) rates Marston’s a ‘buy’ and targets a 150p target for the stock.
Shares in the group are trading at around 33p, down more than 15% year-to-date.
Like-for-like sales for the 42-week period were +10.7% vs FY2022.
Total retail sales in the Group's managed and franchised pubs for the 42-week period were +12.0% on last year.
Dividends from CMBC are expected to be £11.0 million in H2 of FY2023.
Value of the business should be MCAP: £1.2B, so that equals: 181 per share, so 400% potential from here!
Property and Pub Business: £2B
CMBC: £2M
Liabilities: £1b
The debt reduction alone over 23/24 would represent circa 50% of current market cap.
However at this rate it will take 25 years plus to clear the debt so it may take a few years before the discount to nav significantly narrows; barring a bid scenario, of course.
Personally, I am happy to be patient and will continue to top up.
Positive news and evidently on track to put out good FY results, we are to see net debt reduction of around 120m through 2023 and 2024. Sales up over 10% on 16 week and 42 week 2022 comparisons, there is upside here and that also includes any surprise bids for assets.
Maintaining sales momentum and heading into traditionally strong H2. Reducing debt and CMB delivering cash. All good.
However, not much in the way of banging of drums and ra ra ra we are on the way back.
I suspect this rather muted commentary implies something is going on in the background. May be wishful thinking, but this looks like filling the box by making the required pstatement but saying very little.
I am going to continue adding as I have done already this week.
Andrew Andrea, CEO, commented:
"Marston's has delivered another strong trading performance, validating the strategy we are implementing and demonstrating the appeal of our pubs. We are making good progress and are beginning to see the benefits of the actions we have taken in H1, simplifying our trading formats and repositioning our pub portfolio, as well as the investments we have made in our pub gardens and outside trading areas.
"In addition, we are encouraged by the success of the trial extending the partnership model into our food-led pubs. The trial has been positive and we will extend this model to over 50 food-led pubs in FY2024. Marston's pioneered the operator managed agreement in 2009, which now operates in over 700 wet-led pubs, and we are pleased to lead the evolution of this format and are excited about its future growth potential for our business.
"We remain focused on delivering on our debt reduction strategy and continue to make good progress in that regard. Whilst macro-economic challenges persist for the time being, we remain encouraged by the Group's trading resilience and that the pub remains an affordable treat for our guests. An improving cost outlook, together with the actions we are taking to maximise efficiencies, leaves Marston's well-placed to navigate through ongoing economic headwinds".
Property values were originally down grade during the start of the pandemic on suggestions from the accountants however if the business tomorrow continues with its turnaround (post pandemic) and increased sales (which I expect) then the NPV will likely rise even more helping the firm run the business. Fingers crossed for tomorrow that we receive the results we are hoping for. GLA.
It’s shown here, in the accounts published on 16 May 2023.
https://www.marstonspubs.co.uk/docs/financials/2023/interim-results.pdf
That’s great thanks gulfharbour!
I’m in on this!
Tom,
NAV in recent accounts was 98p, much of that value being freehold value of their owned sites.
Does anyone know what the property value of Marstons alone is? Surely that alone is worth £200m?
The employee card is now an online app. I don't like it
Becoming the final couple of days to grab this share at a bargain price. I suspect we will be moving up on the 2019 sales and therefore far closer to the Companies long term over a £1bn value of sales than they have said! Time will tell but we are likely to move up quite nicely from here on.
Not sure if the Carlsberg Marston Company can extend sales (taking up slack from the Carlsberg Russian arm confiscated) but if we can and do sell to Europe then the hot weather there will have helped a lot too for the partnership contribution particularly, if our supermarket sales extend into our European retail stores. Could be interesting!