The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Might be worth attending :-
https://www.marstonspubs.co.uk/docs/financials/2022/investor-meet-company-presentation.pdf
It appears today the govt released stronger retail sales for Alcohol compared to general consumption which will help Looks like we are just starting to respond to the better news out today. Or are we being re-approached as a takeover target?
Supercharger
So thoughtful of you to post the Alliance news cast that is over 24 hours old, do you think posters here don't read the news ?
Fairdealer gives a reasoned analysis of the results, he may be spot on, perhaps he is not, but his post is informative, not a repetition of what we have already read over a day ago.
But thank you for your kind repetition of old news in case we missed it, most helpful of you.
(Alliance News) - Marston's PLC on Wednesday said it returned to more normalised trading despite Covid-19 disruption in the 26 weeks to April 2, allowing the company to swing to an interim profit.
The London-based pub chain operator reported a pretax profit of GBP25.6 million in its first half, swinging sharply from a loss of GBP105.5 million the previous year.
Revenue surged to GBP369.7 million from GBP55.1 million. Like-for-like sales stood at 97% of 2019 levels despite restrictions over the Christmas trading period.
The SP recovered early doors, then Investors take on board this mornings RNS (Investor Presentation) This is probably making existing and new Investors a little nervous!!
All outlets are now open and we heading to the covid levels were all pubs were closed,my mate works in one of the warehouses and is wondering were and how the extra cost savings are going to be made,,,,worrying times for hospitality again,
Same holding now until they are back into the 80's
Tough times ahead but im holding mine
back at 55.5p the shares I had sold at over £1
Like the Curate's Egg, good in places. We are back in profit even though sales 97% of pre.covid.
Loss of 1p/share
Brewery disappoints with a loss of £2m
Brains performing well, not sure of breakdown of Sales to profits ?
Debt remains stubbornly high at £1.246Billion. Agreement reached with Banks and a Private Placement. Seems the Loan waivers agreed a year or more ago are not adequate.
Intention to reduce Debt below £1Billion by 2025
No Dividend will be declared for current year.
Serious headwinds coming. Brewery costs will rise explonetially, energy costs, barley prices have virtually doubled in the last 9months. Food cost will rise in excess of inflation, the company will partially offset with further efficiences, passing on limited price increases. The intention being to have 3 grades of motels/restruants, Family(Community)..Signature (90 pubs to be converted to give a Country Pub Feeling and Revere a Pub/Restruant to provide a high experience for those with High Level of Disposable Income.
Even though the market is down, it does not seem impressed.SP down 7.2%
In comparison M&B 's figures are better. Debt reduced by £250m, profits recovering well. Warns of the same threats facing all Hospitality providers. Serious headwinds coming.
The market prefers M&B's figures/report with the SP down 1.4% in line with the general market.
Total
I must say I admire your confidence ; since you posted them as a "strong buy" at 63p on Monday they are now down 8% at 57.9p & you now say "looks like we have found the bottom".
A nice puff on Monday but it has lost a bit of credibility by Wednesday.
Frankly anyone who thought they know where the top is, where the bottom is or even where the stock will be in 2 days would not be busy posting here would they ? Still you know that really don't you...
Supercharger - Literally what I was thinking.
Watch out for those big buys come in. Looks like we have found the bottom
No doubt the Directors will be taking up their share options at this rate!
Which makes it an even better value longer term to me - after all if the firm is being run by a chief exec with an accountancy back ground he knows he has to keep up with his pricing so like everything else at the moment prices will rise with sales. At least as he said if this is a local pub which are showing signs of recovery most will be walking there and saving on fuel driving to one in town?
Good profit in results
Regarding the market this happened to another share the other week. Results came out dropped 10% due to mention of bad news of inflation, over next couple of days flew up 35%. Market dose not make sense at the moment. Surely only weak hands are selling at this point?
Inflation news is keeping this in red today.
Next set of results will be an even brighter future with earnings per share now profitable at 3.1 pence per share as opposed to last years (14.6) pence loss per share.
Happy to invest further now there is growth.
Coming out of lockdown helping here for 2022 over 2021 H1.. Next set of results will be :-
Revenue £370m £55m
Pub operating profit/(loss) £46m £(59)m
Loss from associates £(2)m £(21)m
Profit/(loss) before tax £26m £(106)m
Earnings/(loss) per share 3.1 pence (14.6) pence
This refers to the latest results when the company helpfully mention that the NAV have improved 7p but then fails to state clearly what they were originally.
The theory is rising inflation will result in less people going out to pubs, less people buying bottles of beer in the supermarket. The reality is rising inflation will do little or nothing to stop people drinking at home and going out to pubs. The supermarkets continue to see huge quantities of alcohol sold each year, despite the pandemic, despite inflation. And go to any town or city centre on a Weds, Thurs, Fri or Saturday evening and it's chock full of people out partying, pubbing and clubbing and having a good time. Pub stocks are down, but the low share price doesn't reflect the popularity of the pubs or their products - I don't think the market is valuing the pub chains very accurately right now. From an investors perspective, that spells opportunity.
Anybody hazard a guess on what the revised NAV is?
And it will be cheaper tomorrow.
Total
Why not just post Marstons are cheap today, cheaper than yesterday ?
Superdischarger
What a pleasure to see your return to this board as the great contra indicator with a poor memory of your previous posts, the only thing missing from you are your previous nocturnal ramblings which were presumably the alcohol fuelled thoughts from a Tesla in the wee hours.
Turnover looks great, hopefully we can start seeing some dividends 2023.