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Https://www.londonstockexchange.com/news-article/MARS/results-for-the-26-weeks-ended-30-march-2024/16467906
STRONG LIKE-FOR-LIKE SALES GROWTH, +7.3%, AHEAD OF THE MARKET, DRIVING GOOD GROWTH IN PUB OPERATING PROFIT, +22%, AND ENABLING CONTINUED REDUCTION OF DEBT; ENCOURAGING OUTLOOK FOR H2
Debt still shockingly high.
Not bad but I wonder if buy the rumour sell the news
Good to be getting debt down and banks are clearly receptive and appreciative given the £340m amendment
The deleveraging story here will only accelerate as less debt, means less cost, means more debt reduction. All hopefully aided by growing profits
I don't think anyone expected it all to be paid off did they? The share price reflects the disastrous debt accumulation prior to covid. They have done as they said they would and reduced debt - the aim is to get the debt below £1 billion - as they move towards that the share price is likely to rise. Having accumulated shares over the past year at prices between 26 and 33, I doubt I will regret those purchases in the years ahead
TGM - DCov seemed to be just trying to talk down a solid set of results with old old old news, ignore him / her.
I'm pleasantly surprise by those results myself, I'd been expecting more struggle considering how more and more people spend less on booze out-of-home.
Augures well for the summer.
“I don't think anyone expected it all to be paid off did they?”
No, but the reduction is painfully slow so will remain a giant millstone around the company’s neck for quite some time.
That said the company is moving in the right direction and I’m happy with my investment - just not expecting any fireworks today or any time soon.
Will accelerate when interest rates drop. Marstons will be a survivor and that alone doubles the SP IMHO.
Looks positive for the future. Hopefully this is an end to one off impairments which have undermined statutory results. I think a level of continued investment in garden facilities etc is positive and good focus on customer satisfaction. It would be interesting to know what the future benefit will be from energy costs falling in 2025/26. Although interest rate fixes/swaps provide protection the flip side is this will presumably limit the ability to benefit if and when interest rates fall. Hopefully CMBC is going to produce a stonking contribution in the second half.
Interested to see what the new man can bring, especially when you look at the success of Hollywood Bowl in providing a family entertainment venue - surely room for some pub garden family events ?
This beaten down stock deserves a rerate as the company is doing much better than expected by the market,and with interest rate cuts and people starting to have more disposable income,this should start to be appreciated by the market..Sentiment is about to turn for the better,in my opinion.
The reason is say debt is shockingly high....is because it is.
Hence the underwhelming response from the stock market.
I own shares in Marston's.
"Will accelerate when interest rates drop."
But not by much. Net debt is expected to fall below £1billion by 2026 which is still an eye-watering amount especially for a company not yet back to profits and only generating modest cash now (after interest). Interest payments are around £100m p.a. so even if they reduced significantly the impact from that alone wouldn't make a particularly huge difference. So long as profitability/cash generation keeps heading in the right direction though all should be OK but it is not in a great position to deal with any setbacks.
As I said, I'm happy with my investment and am confident in the share price recovery but do not expect that recovery to be very quick or without risk. I agree, I can see the share price doubling from here (and more) but I think it will take a few years to do that - and that's ok with me (though obviously would be delighted if it was sooner)!
… and relax