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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.
Lejib, suggest you read the JV documents which will help you enormously. As any serious and experienced investor knows., essential to fully understand the history and financials of an investment.
That depends on what your average price is!
A takeover at 115p per share, I’d be very happy.
Personally would prefer for the recovery to continue and the company to prosper rather than someone else take the spoils.
Fairdealer20 - what is your source regarding that requirement that MARS be forced to remain the owner (Vs just operator) of 50% of the pub estate according to the JV wIth Carlsberg please?
Any takeover will consider the JV with Carlsberg where Marstons must retain at least 50% of Pubs as owned at the date of the JV agreement. Carlsberg have the company in a Headlock. Sahreholders do not know he fine print of the Lease agreement with Brains. Considering Brains pressed for lease payments up front ( Brains were literally drowning) it is pure speculation, but would be surprising if conditions within the Leases are to be overcome. Another shackle to be considered.
The offer from Platinum was 107p, ordinary shareholders were not informed until Platinnum had made a 3rd Offer. I believed at the time a higher offer could have been achieved, however RF was so obsessed to help his mate at Brains, we were never properly consulted.
Any predator now will be very wary of the obstacles.
Shareholders have one man to blame for the mess left in his wake.
Why not 101+p?
- considering that a 100p takeover was refused for being too low in February (?) 2021.
The board is the first barrier - although it could be overruled if enough shareholders join forces.
Is there anything preventing a hostile takeover at 75p?
Obviously affected by the BOE raising rates by .25% but Marston have hedged their liabilities and the outlook looks a lot better for not only them but also for lower inflation (mostly fuelled in my opinion by Oil price rises which are starting to come down anyway. Also if Sales are ahead over liabilities then investment income from higher rates will improve margins from banking proceeds, and if customers have less money for Holidays abroad they are more likely to stay in the Uk where Marston are based. Not long to the results now.
"Could may be my month,With the decent weather,3 bank holidays with a coronation,intrim results imminent,all pubs open with no restrictions,longer opening hours,big crowds expected,Rf gone,,,,,,i wonder if this share price will rocket up to 37p and stay there,",,,well we got to 38p on the back of JDW results then back to normal,,,heres hoping for the knight in armour to rescue us,,
Agree chaps -American Market are pleased with USA Inflation figs which could signal the Fed pausing on rates, Oil prices have fallen too over the past year which is no coincidental. Market sentiment is now a lot higher across the pond which will feed the Market. Also it can be seen now how the whole Pub Sector is picking up. Very much looking forward to Marston results due out very soon which should be at least as good as the others in my opinion for percentage gains. Suspect will be even better than "spoons" who have suffered as a result of train strikes, unlike local community pubs such as those that Marston run!
Peakybinder - I think there are 55-60% chances we will be over £1 this year. This is due to:
- the ongoing disinflation (= lower inflation vs deflation) for businesses (vs CPI, which is for consumers) primarily due to energy.
- the rebalancing of out-of-home expenditure and the increasing confidence that Covid won't make a big bad return (I'm not saying it's certain, I'm just commenting on sentiment) as shown from the sales drops of vaccine makers.
As stated many days ago Spoons had beer on offer at £2/pint. The offer ran from mid-March to 30th April ( the company's year end). It would be amazing if that offer had not increased sales dramatically .