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That would go some way into explaining the rationale behind the acquisition of the Brain's pubs. Convert them into B&B establishments should the work need doing.
This still raises my unanswered questions that I posted the other day though.
How much did it cost us to put the deal together? Where did the money come from? What are getting? Just the pubs? If so are Brain's brewery under licence/contract to supply them? And if so, for how long?
All of these questions still remain answering I think.
@trent700 the fact of these times is whole ever can survive and retain the biggest foot print will win the market over 2021, and by the looks of things Marstons will be in this category.
I can see the housing market slumping and a general pull back of economy, however pubs and outdoor event space will be winners come summer 2021.
Combined with how limited international travel will be and how expensive international travel will be, Marstons how a large enough retail space to clean up and make some big cash.
Trent
WRT staycations and people filling up pubs, there is some merit in that but what bothers me is that the times I've stayed at a Marstons hotel/motel, there always seemed to be quite a high % of europeans, apparently wanting the pub experience, mainly from Germany, Holland & the Scandi's, so with covid we can comfortably wave bye bye to that trade. Thus we will need Brits paying for rooms to make that up, I guess, so it is possibly a bit more complicated than on first glance ?
@barchild, I think for 2021 it's a more than realistic possibility that these BnB will be filled with UK citizen.
Also combine the fact that 2020 was the year that people only got to see family and friends via Zoom, you now have an even bigger human driver for travel within the UK for people to catch up.
2021 will be a good year for Marston's when you connect all the market drivers.
all questions still need an answer , i smell a rat , no body is telling how much brains is going to/has cost and where the money is too come from ,and what we actually get for it , with not alot in the kitty imho share rights issue on the horizon prob 50p or even less ,so i think £1 is pie /sky filled with hopium ,2 years time maybe vaccine or no vaccine roll out, this is only my opinion mainly because i have had my fingers burnt before ,msg [ctea] cluff [deltic] had several rights issues before changing/ selling out when things looked good, becareful all
50p..... you need to do so much research on this stock. Looking at your past comments on other stocks perhaps it’s best to DYOR so you don’t enter 2021 with a crick in your neck.
@Barchid @Clairesmith
I agree that the staycationers are going to be key for us next year. some much needed additional funds coming our way will be gratefully received. I am still (Covid permitting) going off to Kalamaki next year owing to getting my refund from Jet2 for my holiday this year that never was.
I'm also hoping to get away in May too again, Covid & cost permitting. if that isn't to be then I'd definitely try a couple of weekends away in a couple of our Inns.
I'm also hoping to get off to visit our friends in Stourbridge and get ourselves off for a meal and a couple of scoops in our favourite pub down there, The Glassworks.
That's the plan anyway.
yoyo perhaps your right i may need to do more research ,but no one is answering questions when asked , so again as i said "be careful " i may have a crick in my neck but i havent got rose tinted glasses on , i also reserve the right to say i told you so , good luck to all on paper this has merit but it has got to be paid for . keep safe
cookoo12620 you are worried about a small detail, I'm sure Marston's have done their due diligence and have a safe strategy in place to cover any costs, otherwise why would they do this deal/project.
Look at from a good point of view, they have expanded their foot print and more streams of revenue to come their way over 2021 and beyond. Second to that with the extra pubs they have leverage even better mass discount on things like toilet roll and insurance so as a group will make more profit.
This is relatively safe share with a strong future, as Brits like to drink, international travel for a couple more years will be limited/expensive. Marstons are leaving 2020 in a strong potential position.
Claire... have you researched the Co's history on aquisitions and disposals? Charles Wells, Pitcher and Piano, sale to Admiral at huge discount. Have concerns the due diligence has been undertaken superficially. Time will tell.
We are not given any information regarding where Brain's Brewery sits in all of this! Are we to believe the Brewery is being mothballed? Very very doubtful, there is bound to be a supply agreement, remember Marstons are only managing the Pub estate. It is the brewery where money is made. Why are'nt Marstons managing the Brewery as part of the deal?
Had hoped after the Carlsberg deal we were going to concentrate on our own estate reaching a level of excellence proposed.
The annual report emphasised a less than adequate level of Senior Management expertise.
Fairdealer
Agreed. I thought (& hoped) that RF was going to concentrate on upscaling his own premises now he is no longer in charge of a brewery.
Sadly not to be, apparently he prefers to take on a Welsh challenge rather than just getting on with his day job.
YoYoMa
Looks like another chicken pellets day to me, the ultimate HNY for us all could be to have Tesla man turn up with his words of non wisdom ?
Clairesmith
Most impressed to read that Mars will now be able to buy their toilet roll cheaper, they could save so much on that we could see the dividend restored in 2021 (not).
@barchild, basic economics, if the Marstons group can buy alot of products cheaper through leverage of bulk deals across their total estate they reduces costs and increase profits. Simple.
Good luck all, and happy 2021
Clairesmith
Wow, I never would have thought of that.....
Barchild, oh okay, well glad I could give some insight, helps to see what business are doing to improve bottom line (pun not intended)
Toilet roll? Really?
So Marstons sold 200 pubs in the last 18 months, then buy 200 pubs from somewhere else..
And people think they will use these ‘additional pubs’ to demand a discount on stock?
Do you reckon those suppliers/companies upped their prices when the volume went down in February 2020 on completion of the sale of the 200 pubs that went to admiral taverns/Hawthorn leisure?
The additional buying power would be marginal at best and wiped out ten times over by the legal fees involved in incorporating the venues!
Not to mention that they are probably tenanted pubs which probably don’t use Marstons suppliers!
Dave
Thanks, I never thought anyone would ever use bog rolls as an example of buying power, even on this board, first time I read it I thought it was a joke, but sadly the joke was in her reply !
Daave. Look on the bright side, at least we can save water by flushing the toilets with the £6m Estrella stockpile.
Marstons are replacing full barrels of keg and cask products if they go out of date during the lockdowns.. which is nice of them!
I don’t have any Estrella but I’m sure many many pubs will have some to exchange!