The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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YoYoMa & FD
Each time I read the discharger's increasingly odd posts I am reminded of Freddy Mercury, except when he sang "The Great Pretender" he knew he was the real deal, as opposed to our "Sage of Wolverhampton" who just thinks he is.
Interesting article in todays FT saying drinkers will need to be "supercharged" (yes really) to start to reduce Pub groups leverage.
@Fairdealer.
You are correct as usual. Plenty of things still remain unanswered, which do need addressing. The company's perceived inability or unwillingness to address these issues is not helping their cause too much.
Speaking for myself, a simple explanation of what they have taken into account into their rationale into why they've made the decisions they have made would be good enough, but while these questions remain unanswered, this can not be helpful, when things are left to fester, they do not usually sort themselves out under their own power.
I also agree with you relating to the debt reduction, given the sh*t storm we've all been through over the past 12+months, I don't see how getting the debt under the target they have set as realistic. Getting it down to some degree is the best we can hope for under the circumstances. But a reduction is still a reduction.
As you say, I am loyal to the company. I am. The same as all the regulars on this board.If I did not believe in them, I would not have invested here. If my confidence in them goes, I will quietly leave and invest elsewhere.
I still hold the view that this Co. Will do reasonably well going forward, but like yourself, I'd be a bit happier if I had the answers to your points laid out for all to see.
Have a good day.
@SuperDischarger......some of us stayed here throughout the whole troubled period, yes I joined March 2020 however I still remained rather than jump ship like the French when the going gets tough (who on earth sells at 50p then buys back at 90's.......). I am sure you will have a lovely time in your Tesla and you could pay with Dogecoin when you fill up at your nearest Electrical charging point that seems to be always flooded when I drive past the ones in the next town.
Instead of "Strong Buy" perhaps we could have an option of "Don't listen to me I'm clueless" which would allow members to reduce wasting time on your (as FD states) clap trap.
Einstein (Tesla man) returns , no real ideas just ramping clap-trap. Readers might take him seriously if he were consistent. in the space of a few hours he goes from " No opinion" to " Strong Buy". He does have trouble with numbers. a couple of days ago we were to manage more Welsh Pubs than the Company have stated.
All hospitailty/pub groups need a huge turnaround, a good summer is necessary to make a dent in losses already recorded.
Some of us were suggesting when the JV was on it's way, the company needs revitalising with some innovative ideas, Public Houses are an expense asset to manage and maintain they need to have a high foot-fall which is not just 10-12 weeks of a summer, weekend trading is not an effiecent use of resources . Don't see anything in the " wish list" that inspires a dynamism neccesary. Unless we get an Ideas Person as the new CFO, it will be a continuation of the same old.
Carlsberg are unlikely to T/O they are not into managing/investing in Pub Chains, their philosophy is Production where capital to income ratio is greater than capital tied up in commercial property which has a relatively low income return to asset value.
The sector as a whole has and will face significant financial headwinds, even given a brilliant summer and consequential recovery. Mars has one anchor that Whitbread, Fullers and to some degree M&B do not, a debt pile of £1.6billion. Income generation is critical going forwards. Any interested predator may be a little wary after the Platinum affair which sent a clear message.
AIMO DYOR GLA
It is a shame this report could have been done one month later then we could have seen how sales where going
The three shorters on here forget one thing most of the pubs are now open and taking in cash, and in June all being well all 1500 will be open. inside and out. This will bring in a shed load of cash that was not brought in for a year and the reason for that is most who are sensible will not risk going abroad but stay in the Uk. When did this last happen? Most summer holidays in the past a fair percentage would holiday abroad -well this year the situation should now change and with Pubs just re-opening and more customers in the Uk than a normal year the recovery for Marstons will surprise many next qtr I am sure. Keep faith this is a very good long termer. The Company is so cheap it could still be bought out by Carlsberg or an RF Management buy out - or even from anyone who has not put in a bid for six months!! Think about it, but like me do not bother to think about the shorter's stuck like a negative broken record and not full of any positive good ideas or any Pedigree! I may even go away with the misses and charge up the Tesla. What other pubs offer this!
Trent your loyalty is admirable. Things have got to get better otherwise Threadneedle Street here we come.
Even though we read the strength of the balance sheet, I think Mars are going to need one hell of a tail wind to get £1.6 billion debt down by 2024. The consideration from Carlsberg last October has reduced debt but there seems to be circa £90million used elsewhere. The report ramps up the quality of the Brain's estate , yet the well touted original deal stated as I recal l156 pubs . Later we were told when RF signed the completion, 40 pubs were of poor standard and so far as we know are either being improved, Sold or demolished. This raises questions:- was there a reduction in the payment originally agreed with Brains in December or did the cash consideration remain the same for a lower number of Pubs.? Brains still own the Red Dragon Brewery . a relatively modern brewery. Is it reasonable to believe the Managment Agreement requires an agreed barrelage to find it way to Welsh pubs. If this is the case have Carlsberg agreed? Many of these issues should be covered within thee agreement, which seems difficult to peruse.
Shaperite talks about the support of Carlsberg, does he understand the relationship between Marstons and Carlsberg?
I hope others have read the accounts and form an opinion which could shed light on a numbers of issues.
@ Barchid, Shaperite
I have seen posts on here relating to comments about the RNS & Shaperite's comments, and can see valid points on both sides of them. A number of things on the RNS do raise queations, and of course the points about only just re-opening.
Personally, I can't see why things will not improve once normality settles back in. To me, it's just a waiting game to see how things transpire. I have the patience to just sit back with this long term, as I invested here more because I do like the offerings here, but that's just me. Others who are here have their own reasons for being here.
Good luck to all of us.
Sadanby, i agree and had a few more today in high 80s. Unless Bojo shuts the pubs again things can only improve.
This stock is so cheap just had to buy more we will all be looking back in 6 months and think why didn’t I buy more
Shaperite
I don't think any of us was expecting a profit, if you read the comments made it is the mood music and the glossing over of details which is concerning posters.
@Shaperite
Some very valid points. Every business is starting to come out of a massive sh*t storm. This, as Is to be expected is going to have had a massive impact on the company's resources. It is going to take time to recover from this.
But recovery will come. I have faith here. For now.
what did everyone expect a massive profit ???? Get real, we turned down a take-over offer of £1.05 only a few months ago so obviously the BOD thought that this was a derisary sum and that they would comfortably raise the share price well above that - given time. All the sporting events due to come this summer are on course, all pubs should be open, we are supported by Carlsburg and have a lovely tax efficient half-year to go forward with. Come back in October time and if I am wrong I will
appologise but the share price at £0.91 is a steal !!!!!
On 17 May the restriction on indoor trading was lifted and all our pubs are now open, albeit subject to
social distancing and other regulations, such as the rule of six. This includes our 20 pubs in Scotland
and 213 pubs in Wales.
We eagerly await pubs being able to reopen in England on 21 June without trading restrictions as set
out by the Prime Minister as part of the ‘roadmap’ for England, and we still await clarity on the position
in Wales and Scotland. Our portfolio of over 1,500 pubs, and the teams which service them, are well
primed to welcome guests back for the very best Marston’s pub experience.
Will bring in much needed retail sales.
YoYoMa, Barchid,
Good morning, like wise I will study this exceptionally long report. What a pity the Brain's agreement has not rated such a lengthy disclosure ( something I have been hammering on about )
My Initial observations are is it a wish list for the future? The very long list of projections and where we want to be, is mesmerizing to most Investors.
I am particularly interested to see the contribution to Mars from the JV. Ok it is trying times, however the Brewery when solely owned earned £22m profits we have now moved into a share of CMBC which has returned ( sorry lost) £22million.
I want to dig down into the use of the £239m received from Carlsberg, hope there are no surprises.
YoYoMa
Actually you beat me to it, my impression is that there is a lot of waffle in the report, quite how RF describes us as being in a "robust financial position" when we had to sell 60% of the brewery business to achieve net cash inflow does ring my warning bells.
Furthermore when he highlights the finacial headroom we have with banking facilities there seems to be a failure to point out that this is after 2 renogotiations of covenants were needed in a year.
Were we expecting numbers like this, absolutely, so why try to spin it rather than present the bald facts, warts and all so expectations are managed correctly ?
Also I was hoping for more info re the "no brainer" Brains deal, disappointed there too.
Numbers do not change my overall view, but I would prefer them without the gloss tbh, be very interested to read your thoughts after the digestion session this evening.
I will set aside this evening to digest the RNS it's probably the longest RNS I have seen in many a year. Some good info yet also some points of concern much further down. Personally would of liked an independant CEO step in rather than the old boys club that would inject new idea's and also bring an unbiased view to the table. The CFO is a well known player in the markets and will take risks lets hope that the strategy is promising and he doesnt use this as a gameset. Perhaps a small dip today but nothign stopping these from gaining strentgh as we move forward.
As well as here. Although I did well a few sgc to take a punt on FUL.
As it goes, I already have a position in SGC.
Worth a read - 3 penny stocks I’d buy - Motley Fool
https://uk.finance.yahoo.com/news/3-penny-stocks-d-buy-071627248.html
Check the number again. You have included 40 which are regarded as below standard and in need of serious enhancement.
No wonder RF has decided to call it a day, his advisor has provided crap info again.
Next week has seen very large numbers of take u already as per my mate RF. 156 were in Wales when contracts were signed. Fingers crossed for all & with the Welsh Ministry wanting all to stay in Wales -takings should be good!
How many Brain's Pubs are opening next week??
I was happy previously with my £4k profit on Mars and have now a small holding here, as well as across the whole market. I see you three are legends in your own minds- and so I must be in the right place!
Enjoy your beers next week!
Who will have to buy back? I still have a nice serving here. I did pull out at 93p a few months back but still left in a nice sum that is sitting nicely. Wouldnt want to be buying at todays prices compared to when we were in teh low 30's. I do beelive your Gratis shares you cashed in at 10Bob which could of been double now.
Those who pi55 in a wind tunnel are the ones who will never learn SD.