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This may actually be the step before agreeing a takeover of the company very soon. IIRC wasn’t it Andrew Andrea who turned down the 95p per share (IIRC) offer from February 2021?… Please can someone correct me if my recollection is wrong.
FD
You beat me to it !
I note that they are sticking to their trading guidance so now let us see if the new suit can come up with a plan for the debt mountain, and an update on their unwanted premises would also be helpful.
Well well, what have some us been saying for months, at last the Board have acted. Lets hope the new CEO has left the Amusement Park's misfortunes behind him!!!
WIth the supply deal signed for Stonegates pubs (the Uk's largest pub/wine bar outlet which we understand are to be now served by Marston from the Carlsberg Marston brewery Joint venture. We can see the number of outlets has doubled to over 3,000 from 1400 plus. I can see economy of scale and sales benefits, with costs savings for both Marston and Stonegate and the brewery will benefit from a joint partnership. With the expectation of lower rates and inflation reduced, lower costs, with the economy of scale benefits added in, this share will climb and rise in my opinion for some time yet! GLA.
Hope so, a great move up today hope it carries on on tomorrow
Good news on inflation...interest rates to come down....MARs a big beneficiary....Rerate should happen...
Better pray interest rates don’t go higher
Should be and has been as expected based on the last Company statement showing growth and increased returns into 2024.
However with the Stonegate deal signed up for the Brewery to deliver to an additional 1400 plus pubs/bars for the next 10 years, the their own 1400 that's over 2800 plus. I wonder why the Board are delaying an announcement of an uplift in projected sales? Could this have something to do with the Board wanting to take up their own options first? Who said that? I can see to be honest another merger coming along here soon too. Also can see Carlsberg expanding further the brewery to take up the slack lost recently with abandonment of their interest in their own Russian brewery now taken over by the Russians.
The future is now looking very bright here at this price!
I wonder - is the Marstons share price finally at the start of an upward breakout
Not surprised the recently announced Stonegate Partnership deal for the Marston Brewery partnership to supply the largest pub/wine bar retail outlet chain for the next 10 years is having an upward affect on this share price. This has just doubled the number of outlets the Brewery supply in one hit. The share price is now responding to this deal and we will see more coming forward who Marston currently supply too - for fear they will be moved to the back burner in preference to the 10 yr Stonegate deal. Interesting both Marston and Stonegate will benefit from this.
As a pensioner who inherited the shares in 1990 from my father in the form of Wolverhampton and Dudley. He'd had them for many years. I hung onto them because he was a proud Wolverhampton man. My shares were 5k a year in dividends which were most welcome for little treats. I've not seen a penny since July 19. It's been hard not having this windfall. I just hope my late father's belief in the brewery stands true today
If Marstons had not paid so much in dividends over the years 2010-2020 there would be less issue re the debt. If they can keep paying debt off then there will be no need for a rights issue - how much would a RI raise ? Not much benefit to existing shareholders. Directors buying shares. Cant see a rights issue coming. Keep trading and dont do any stupid deals and the shares will be back nearer £1 in due course. Its still been a shambles for existing shareholders but the last few trading announcements have been positive and perhaps maybe the market is underestimating Marstons
I am well awre of all the intricities , but you have to laugh -Barclays made £1.8 billion for the last quarter and their shares fell by 8% , MarstonsOWE £1.1 billion and their shares go up by 0.7 % !! No other comment - just saying.
Eb
''It also needs a sizeable rights issue. ''
No thanks - Marstons will be making good profits in the future. The majority of it's planned capital expenditure has been made in the first half,with the majority of profits normally coming in the second half.
FD
'' Another poster drew a comparitor if that were the case National Debt would eventually disappear, assuming borrowing remained stagnant.''
I have already said, UK debt does not remain stagnant unfortunately.
'NewCashquack' said ''Inflation of ten percent is a reduction of debt of ten percent in real terms.''
He said in REAL TERMS.
Inflation figures came out today which my occupational pension looks at for rises, but because there is a cap it will mean I will be getting a REAL TERMS cut in my pension as measured against inflation. Simple enough for most to understand.
If everything doubles - prices,costs and profits, and the debt level of Marstons is maintained at the same level , then the debt would have halved as a ratio measurement against profits, with the obvious benefit of being far more easily serviced.
It also needs a sizeable rights issue. This company needs to be recapitalised
Have not missed the point just correcting the misconception that Inflation decreases primary debt. You agree it does not. Another poster drew a comparitor if that were the case National Debt would eventually disappear, assuming borrowing remained stagnant.
Land and Property have always been assets that add value over time. There are certain exceptions to that general rule as 1000's will recall when Residential values plummeted in the 90's and borrowers were in negative equity.
THere are numerous classes of Property, Residential, Commercial which in turn are broken down into further classes. Commercial includes industrial, shops and Pubs. Values attributed to those Commercial classes can and does vary considerably. Take Pubs which may be Old buildings and subject to Historic Grading that protects against any structural alterations. Other Pubs are subject to Planning conditions which can, not always, present significant obstacles where re-development is involved. The point being values on Balance sheets often over state what a willing Buyer is prepared to pay.
The point regarding the effect of Inflation on debt basically relates to increased values of Income and costs.
Income has increased by some 11.6% however costs have at times during the period increased exponentially earlier in the period just reported. Fresh food increased more than 17%.
Look at other metrics within the sector....ratio of assets to debt.
MAB...2.3x
Fullers..3.2x
WTB......1.99x
Spoons..1.66x
MARS......1,5x
Marstons are bottom of the league, something asutute Investors, not Traders, will have factored into their investment decisions.
''but how will it help the marstons share price''
increasing profitability and decreasing debt levels would make the shares more attractive for investors. The CMBC deal can only be seen as a good plus point .
That is a lot of pubs for CMBC to be selling beer to.
Stonegate Group was only formed in 2010 - now has about 4,800 pubs after a dozen acquisitions.
Yes, looks good
https://www.expressandstar.com/news/business/2023/10/16/brewing-partnership-for-carlsberg-marstons-to-create-100-new-jobs/
It looks like this side of the partnership is doing ok,,,https://www.expressandstar.com/news/business,,but how will it help the marstons share price
P46
''Everyone had their chance to unload this shxt at 100p or thereabouts''
Yes I made a sale at over 100p on 5th Feb 2021 - unfortunately it was only about 15% of my holding at that time.
Last bought on the 6th this month at about 27p.
i have plenty of patience waiting for a good improvement in fundamentals.
BTW P46, you post nothing but doom on a number of boards, with everything being siht - what a sad person
Bar
''FD
Indeed you are 100% correct, if debt was inflation adjusted the UK national debt would be rather insignificant.''
You have completely missed the point. First of all government debt isn't fixed - 99% of the time it will increase year to year. The crucial measure for government is the GDP/debt ratio.
Someone purchasing a property 20 years with a 100% interest only mortgage for £50,000, would now find that due to inflation, with subsequent increases in income that debt would now be insignificant compared with 20 years ago.
Basically if debt is fixed and inflation/income increases then that debt as a measure against income decreases.
Marstons should over a period of time be able to pass on inflationary increases in prices, whilst at the same time maintain/reduce debt levels..
Everyone had their chance to unload this shxt at 100p or thereabouts, I think I got out about square at 107, no brainier to get clear, it was a vile share to own but tbh brexit basket case U.K. listed shares are all dire since 2016 as capital outflows have been massive ever since, nobody to buy the shares and now anything with huge debts is toast as rates will now be higher for years. It writes itself, this is another AA, will be taken out for pennies.