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Pub operating profit rocketed to £115.4m from £5.7m year-on-year, while the company's share of the profits from the Carlsberg Marston's Brewing Company (CMBC) came in at £3.3m, swinging from a loss of £14.5m a year ago.
Looking at its underlying performance, Marston's reported total revenue of £799.6m, up from £401.7m, while it swung to a profit before tax of £37.7m from a loss of £101.3m.
Earnings per share came in at 4.3p, compared to losses of 13.6p per share in the 2021 financial period.
Marston's net asset value per share improved to 102p at the end of the 2022 financial year, up from 64p at the end of the 2021 period.
Looks like they are coming back fast from lock down and have an expanded estate to run at that. Very clever move to take on the Brains pubs in my opinion.
just a few points:
1) most pub operators' share prices were down today, so it was a sector-wide share price drop
2) Morgan Stanley bought 5% of the share on the 25th Nov, and they would have done a lot of due diligence prior to the purchase
3) we are now out of lockdowns and pubs are being visited
4) marston demographic are generally mid-class an this group have continued to spend, inflation and the rest of the bs of the market is only really affecting working class (lower incomes)
5) the marston / carlberg relationship is a solid statement and fortress of cost reductions and growth
Marstons rejected a takeover offer of 100 for a reason, they know things are cyclical, and we are at the bottom currently and on the way back up over the next couple of years
FD
As usual you have encapsulated the essential numbers, when I looked at the rns this morning my first thought was "these are better than expected" followed by "why haven't the shares shot up, or even firmed a bit", then upon looking at them I realised they weren't as good as I first thought, having seen your post I went back in to look in greater detail, & you're right.
IMHO I believe that the estate is unlikely to be saleable at their valuations, commercial property has taken a walk in the park in the last few months & with the brewery not showing much of a divi for MARS 40% stake the real bet is on the estate, which is weighed down by debt in a rising interest rate environment, less than ideal...
The accounts need to be fully understood. The basics are: =
Debt reduced £9m to £1.59Billion
Projected dividend from CMBC for 2023 ...... Nil
1/3 of properties revalued in July 2022.........RICS latest quarterly report (November) records a significant reduction in commercial properties.
BOD report breaches of Lending covenants will happen in 2023 and negotiations are ongoing with Lenders to achieve waivers. These negotiations are hoped to complete by 31st December 2022
BOD aware of cost-of-living crisis and are prepared for a 5% reduction in sales and allowing for below inflationary costs, margins and profits will suffer. Consequently, the BOB have prepared a crisis plan...... reduced maintenance of properties and Capital expenditure reduced for 2023.
Against this background, hard to see how Marstons could be in a position to pick up cheap estates.
There is much to digest in the Accounts.
DYOR
Did you not read the RNS, they have reduced the debt, and have a plan in place till 2026 for further debt reduction.
Taking all things into account, and a business/sector that was hammered from 2020 to 2022, they are doing very well.
Fact is, if Marstons can survive where smaller operators collapse, they will be able to buy up estates on the cheap and consolidate more of the available market to themselves.
Having profit and available cash with the Carlsberg partnership under them puts Marstons in a very powerful position.
Claire,
What about the debt? How will this be repaid? Very small reduction in this period......
BB2
Marstons have survived the worst of lockdowns and the current inflation situation.
as such, as rivals close venues this will mean more money going to marston = more profit
golden opportunity from here to make a lot of money, or for another takeover bid at 100
Ok, just taken a small position, may hold or may trade in new year after Xmas update..
Net asset value of £1.02, lets liquidate the lot and take the money.
Peakyblinders
FYI been investing since mid 1980s. Seen most things during tha time, good and bad.
Nice mansplaining though.
Good luck
I don’t know about the discount vouchers.
No dividend.. they need to reward the shareholders somehow, reinstate the privilege card perhaps.
Are the discount vouchers ending on 31st Jan ?
No mention within report.
50p, no chance...
Little in the way of forward statement.
I appreciate you are new to investing Mary, but past figures aren't important.
Yep good enough for move back towards 50p
Debt is reducing, sales are up. The sp has declined significantly this year in anticipation of consumers having a reduction in their disposable income. I think this RNS has comments about people not going for the big ticket item (car, holiday I assume) but instead treating themselves with an enjoyable drink at the local pub.
I’m pleased I bought recently and have confidence with the team managing Marstons.
Perhaps that's what is already indicated in the 60% share price collapse this year!
perhaps but topping up if so and selling if some if it spikes up. Rinse and repeat.
Sorry to say, but think results tomorrow will be painful...
Good brand, but debt growing and pocket money getting saved, one to watch for the bottom next year.
Confirmation of Final Results announcement date
Further to the Group's announcement on 28 November 2022, Marston's announces that its results for the year ended 2 October 2022 will be released on Tuesday, 6 December 2022.
Are annual results on Monday?
Totally agree - certainly the staff today were excellent, very friendly and overall they gave the impression of an efficiently run establishment which is a good sign
I can see not only Families visiting the establishments but lets face it if Corporate do's cannot be held in town (due to rail strikes) then many businesses might be booking up for more local Country restaurant's and they will most probably be soon over booked.
Sounds like very good value Scorpio -they have always been very family orientated to me! Friendly too.
Went in my local Mars managed pub with partner to use one of my 30% off vouchers. Very busy for a lunchtime Friday. The food for their sort of prices was very good. A pint plus soft drink and 2 mains was £25 with the voucher. Can't go wrong in these inflationary times
Like so many U.K. based equities share price looks sharply undervalued, a £250 m market cap does not look very demanding.