Marstons Share Chat (MARS)

"This being a trading update, there is no mention of asset values but the NAV per share should remain somewhere around double the current share price and we see further upside as distinctly possible."

I think interested investors should look at the MAB report, and comfort themselves that there is little difference in the disclosure at Marstons or MAB.

M&B and Marstons share the same year ends and tend to publish Trading statements within a day or 2 of each other. On this occasion MAB updated the market on 21st September. By way of comparision interested investors should view MAB's statement which is more informative than that published here today

WW . True. To be clear I am a shareholder and want the Company to prosper . I was disappointed with the Trading Update for reasons I have given and over the years I have seen many Trading Updates from many different companies. I note that on a day when some thought we would see a share price rise there have been very substantially far more shares sold than bought. Others clearly are of the same view as me - although I will continue to hold.

They may well make another announcement for the benefit of all shareholders. We don’t know yet.

Further to my previous post - yes, it is merely a trading statement but it could have provided much more detail.

We all knew about the sale of shares in CMBC and could have expected the Sales figure for the year. The underlying profit seems to be just a bit up on last year. To say the statement was "very , very positive" is ,I believe, really exaggerating. If the directors do have more to share why wait until those going to an Investor Day presentation next week - I would suggest that they should have used this RNS now , for the benefit of all shareholders.

“ We look forward to sharing more about the Marston's growth opportunity at our investor day next week.” There may well be an accompanying presentation and RNS associated with this. Today’s announcement was a standard trading update, but well done geemoney for trying to get to some underlying cash conversion figures. The company has debt, but far larger assets. With the shares trading around 52 week highs, it appears the market is rewarding those who put emphasis on the latter. ATB

This was merely a trading statement, and very a very positive one mind. The full year results are out in December, and as a listed company they can't divulge that information publicly ahead of the results. If the sentiment in the trading statement is anything to go by i'd suggest topping up ahead of the FY announcement as we know this stock is criminally undervalued

I was disappointed with the lack of new information in the Trading Update. I have never found the Company very forthcoming with news and this continues. I have to agree with FD20 that today's Report is short in detail. I had posted several weeks ago that I expected debt would reduce by £300m and we received confirmation today. We know the company took a loss, earlier in the year, of £45m on sale of shares in CMBC . I believe that the Company sold 37 pubs during the year - what did they sell for ?. It seems to have made an underlying profit this year of £40.5m this year, compared to £35.5m last year. At the very best a quarter of a step forward, when one considers England had a very good run in the Euros which was supposed to bring loads of cash in .

Looking forward, I would have liked the Company to have provided some really inspiring details on the "Significant Opportunity Ahead" (their words) which lets face it, most directors say about their Company.

AS part of the Loan Waiver agreements in 2020, Any payment of dividends are sancitioned by Loan note Holders

I really don’t think it is time for dividends yet. Cash is best used to reduce debt which then boosts future profits. The business is currently a combination of trading performance (which seems healthy enough) and large debt costs. The progress on debt reduction should already mean perhaps £20M lower debt costs in 2025. Refinancing to reduce debt costs could lower debt costs in ‘25 by who know another £10M again. Use 2025 profit/cash to cut debt further and we have a virtuous circle which will drive profit growth almost regardless of trading. Share price could even be double in 2026 - better than any immediate pointless dividend. There seems a lot of potential here if well managed. Must remain a possible bid target I’d have thought.

I.E. Even with the sale of the Brewery the Assets must be over £2billion, and debt is now it seems less than £1billion the shareholder value due to the limited number of shares released should showing a large enough increased in the share NPV with some re-engineering of all outstanding loans at falling rates to start paying a small divi. soon to shareholders once again one hopes!

My math suggests:

CMBC disposal £200m

Prop disposals target was £50m

CMBC div £14m

Debt reduction was £300m

Means £36m attributed underlying cash flow generation.

Historically Marstons have suffered poor management which allowed debt to increase to unmanageable levels, at the expense of Shareholder value ( SP and Dividends) Getting to grips with debt is only coming about by reducing assets, which in many ways can produce short term benefits but longer term net income reductions. Selling 100 pubs may reduce debt but those pubs will no longer contribute towards Income.

It should be remebered Longer term Debt shows reduction however it is the total debt ( Including current liabilities) that Investors will consider. The 40% brewery sale proceeds,reduced some of the Longer term Loans, but because of fiscal rules regarding Loan Waivers agreed with Loan note holders in 2020, a large element of debt was vired to Current liabilities, which is not fully stated. Presumably because BOD consider it an exceptional overdraft and therefore considered a Trading facility.

Todays report is short on detail, it will be the Full year's accounts ( due in early December) that will tell the full story.

Every hospitality co. report Sales but fail, at this point, to state cost of sales which ultimately give us the all important, Net Profit figures.

Sales reports for the period of competitors are:-

M&B.................................+5.2%

Shepherd and Neame... +4.9%

Spoons............................+7.6%

I suspect it has something to do with the large base of retail investors whom take profit every time the share 'pops'.

Charliebur,,,i noticed that,its been happening for a few years,it seems that everytime marstons release good news,their price drops or doesnt move,but i see other companies give out good news and their share price jumps dramatically,anyone have any insight,

Normally just a drop after good news, that tends to be the trend here

Certainly does but beware the pop and drop

Hope it justifies the J.P.Morgan and Peel Hunt upgrades and we should then be looking at over 50p GLA.

YES AWAIT IN EXPECTATION - SECTOR RESULTS SHOW GROWTH -We also know Marston have invested previously and made quite an effort to get their outside TV Screens in place before the years major sporting events took place, and so their results are being eagerly awaited. The share price upward movement also could be a good sign. GLA

Wetherspoon profits up 73% as sales hit £2 billion

Company indicated in their July trading update that the year end trading update would be on 9th October with the preliminary results scheduled for 3rd December.

Pretty sure this was proposed for 4th but now as J P Morgan have said it is on 9th. Interesting!?

Wetherspoons are tomorrow? Might show a sector direction too.

You said the announcement is week - tomorrow?

Results expectation is high, but we have seen some stake building going on as reported earlier and so something may be afoot in more ways than one.

Aberforth now have over 11% of the Company and with the Net present value previously set at 90p plus the price hereon is still a very good time to invest.