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Shaperite
I wouldn't worry about "derampers" as you call them, on this board, they are mainly people who have observed the shenanigans on this board over the years.
It is the perpetual rampers you need to be aware of, quite how relevant is having a Godfather at Dunkirk & then company secretary in the days when typewriters were the hi tech machines in offices, as to whether or not this company survives is laughable. I always thought that after the rejected bid during covid MARS would be taken out by private equity of one form or another, the fact that this has not occurred makes me think that people have assessed this stock in a more logical fashion than boasting of the ex secretary's admirable war record & they don't like what they see.
Hence we are where we are rather than the wishes of stale bulls.
Shares currently 35p down 5.8% on my screen.
Best case a renewed takeover offer accepted by the BoD.
In answer to your question, best case a rights issue, worst case SP = 0
All the positivity here on a very average report , mainly owing to the fact that the debt overall has been reduced by £ 12 million , yet Mars are still behind the black ball to the tune of £1.2 billion !!! Mars has twenty odd pubs still for sale ( in fact every pub is for sale at a price ) and although there are obviously good patches of trading , maybe even excellent patches , the proof will be in the period H2 when the increase in minimum wage raises its ugly head, when the impact of increased rates starts to take impact and finally the pressure on discressional spending take effect. One last observation
is that I really hope that it is a good summer which could negate the above to some degree - but what if it isnot???? I am not a deramper , in fact I am a large shareholder and a resteraunt owner !!!!
"MARS will end this month well above the 35" A lot of lth, me included are waiting for the "well above 86"
I agree consumer demand is still robust, surprisingly so. Question is, is this the last of lockdown savings getting spent?
The market reaction is perverse.
Added today - MARS will end this month well above the 35 I have just bought at.
Results are OK. Economy is nowhere near as bad as the doomsters are predicting. I had to wait to get a table at 6pm on a Tuesday evening last week for goodness sake.
For the brick chuckers - if you want to say Sales increase is only due to inflation and therefore discount it, then do the same and acknowledge that the reduction in debt in real terms is way more than the nominal £12M.
DYOR as always but I am buying again.
Hardly surprising given the country is getting poorer and discretionary spending is under pressure
Everytime we get some mediocre or good results the sp falls,has no one got any faith in this company anymore,
How is M&B any better? Stands to be a victim of the 'squeezed middle' and the debt position is argubly worse. They report tomorrow so we'll soon see...
The RNS does mention a bit about Easter and May BH but still not good enough. If you want exposure to this sector, probably better prospects with Fullers, Youngs or Mitchell & Butlers. Check out their updates and compare.
Agreed that these results are reasonable, but not great.
Positives for me were:
-£12m debt reduction (any reduction welcome but still a long way to go with overall debt at £1.2bn!)
-trading period does NOT include easter or the May bank holidays which seem to have traded well
-board report comment that most of profit is generated in H2 augers well to next trading update, which based on 2022 announcement should be around end July
I probably wouldn't go as far as shorting it as summer is indeed an enormous contributor to profit, but the case isn't clearly bullish anymore. It's just mediocre IMO.
MARS and MAB look like a binary bet on if there is a consumer downturn or not. I think there will be given inflation and fiscal drag and am short MAB. LFL sales aren't keeping pace with food inflation (highest of the lot) so are down in real terms.
I'd want sales up 20% at least. I read the results as disappointing considering the headwinds of inflation, interest rates, rail strikes and rising wages, taxes and supplier costs. As someone said compared to other pub chains the results are poor and need to get that debt down quick.
Yes, markets have no interest, cannot hold 36p atm.. awful performance BODs and CEO
You appear to try throwing at me inaccurate or vague info to divert people from the fact you cannot substantiate your claims.
1- The place to ask for documents is the online investor info form. It's not a company secretary's job to respond to shareholder and investor enquiries.
https://www.marstonspubs.co.uk/contact/
2- There is no charge recorded on 4 May, only ones on 3rd and 2nd may May. Even giving you the benefit of the doubt and that you simply confused the date by one day, what exactly look odd / outstanding about that 3rd May charge?
For everyone else's info: a "charge" is effectively a collateral placed a company's assets in exchange for a debt. This is normal for any business needing to borrow large amounts of money as part of its operations. Marston's debt figures are well publicised.
https://find-and-update.company-information.service.gov.uk/company/00031461/charges/BFJsRyJaCj3xJAOmdgMvQr-feDg
The results are not "great", they are OK.
And poor vs other pub chains that have swung back into actual profit. Marston's is still loss making (even though the loss is clearly smaller) in spite of all covid restrictions having been lifted nearly 6 months before that financial year.
Great results and they unchanged the market clearly no interest, they should be better on this update
16 May 2023
MARSTON'S PLC
RESULTS FOR THE 26 WEEKS ENDED 1 APRIL 2023
CONTINUED STRATEGIC MOMENTUM: REVENUE AND OPERATING PROFIT GROWTH, POSITIVE CASH FLOW AND CONTINUED DEBT REDUCTION
Marston's, a leading UK operator of 1,440 pubs, today announces its Interim Results for the 26 weeks ended 1 April 2023.
Underlying*
Total*
2023
2022
2023
2022
Total revenue
£407.0m
£369.7m
£407.0m
£369.7m
Pub operating profit
£43.1m
£39.9m
£43.1m
£45.9m
Income/(loss) from associates
£2.2m
£(2.0)m
£2.2m
£(2.0)m
Profit/(loss) before Tax
£(3.6)m
£(7.5)m
£(38.1)m**
£25.6m
Net profit/(loss)
£(2.9)m
£(6.1)m
£(28.8)m
£19.4m
Earnings/(loss) per share
(0.5)p
(1.0)p
(4.5)p
3.1p
Net cash inflow/(outflow)
£11.5m
£(8.9)m
NAV per share
£0.98
£0.71
* All activities relate to continuing operations
**Includes a £34.5 million net loss in respect of interest rate swap movements; a partial reversal of the £109.2 million net gain reported in FY2022
Revenue and pub operating profit growth, despite macroeconomic environment
· H1 like-for-like sales up 10.7% vs last year and up 17.9% vs FY2020
· Drink sales continue to perform well and food sales were encouraging, demonstrating the trading resilience of the Group's predominantly community pub estate
· Increase in pub operating profit: £43.1 million (H1 FY2022: £39.9 million); due to the seasonal nature of the business, the majority of profit is typically earned in H2
· Improved share of CMBC's profits: £2.2 million (H1 FY2022: loss of £(2.0) million)
Positive cash generation, debt reduction, continued NAV momentum and extension of bank funding
· Operating cash inflow of £69.9 million (H1 FY2022: £30.2 million) and net cash inflow for the period of £11.5 million (H1 FY2022: outflow of £8.9 million)
· Continued progress with debt reduction strategy: net debt excluding IFRS 16 lease liabilities reduced by £12.1 million to £1,204.1 million (FY2022: £1,216.2 million)
· Net asset value (NAV) per share of £0.98 (H1 FY2022: £0.71)
· £24.3 million generated from non-core strategic disposals to date at 39% ahead of net book value, with disposals totalling £50-60 million anticipated in FY2023
· Successfully secured amendment and extension of banking facilities totalling £340 million, comprising £300 million RCF and £40 million private placement
· 63% of the £65 million capital expenditure earmarked for FY2023 invested in H1, thereby maximising the benefit in H2
Continued evolution of pub portfolio
· Well-positioned, predominantly freehold pub estate, with limited exposure to city centres and community pubs continuing to benefit from consumer lifestyle changes
· Simplified estate categorisatio
I agree with you Mary. My God father was the Company Sec. for a very long time (he was a Captain in the Army )who had played his part and served us all well at Dunkirk, but was also very fond man of his Marston's and hence my personal references in memory of him. He was a great man and he always said this is a great company. So fingers crossed the tide has turned and sentiment has returned (post pandemic) and so it appears to this sector! GLA
Onwards and upwards hopefully starting tomorrow.
Happy to hold this share and due to my family connection/ sentiment am unlikely to sell my whole holding anyway. Happy to support and hold this share for many years to come, as they will recover and quite strongly in my opinion where I see the Company Management making changes with infer a far more professional leadership with clear positive forecasts and presentations, award winning Beers and Menus to make a Company that cares about quality and service.
If they do get an approach that will not surprise me, but I would prefer us to remain in name as we are. GLA
Suggest as a bona fide shareholder you contact the Company Secretary and request the full details of the JV referred too in 8th June 2020 circular.
Have you seen the Charge documents recorded at Companies House on 4th May? That may give you further insight into the finances of the Company?
Where are they please? I could not find them.