The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Very strange
Maybe
Parliament's vote in favour of scrapping the beer tie as part of the statutory code is going to cause havoc but is excellent news for all the long suffering leaseholders & tenants of Punch & Enterprise. Green King will now pull out of the Spirit takeover.
They're finished - statutory code (or part of) in Queens speech tomorrow. Every rent review will now swing in favour of the tenant/leaseholder.
Debt restructure looks dead in the beer
Any thoughts on the latest RNS? Does'nt look good to me, though I may be reading too much into it. Big drop in SP
I'm with you on that - got a member of the family who tries hard to make a living which is just impossible when you have PT as a landlord.
I wish I was down the pub! Fed up with waiting to see whats going to happen to this lot. I still think if the statutory code goes through parliament and the bond holders do not agree to a debt restructure they are stuffed (just like the leaseholders & tenants!).
Lot of selling going on!
Bondholders reject latest debt restructuring proposals - any thoughts?
Gloomy news in the press today. Also BIS committee sitting today to hear evidence re statutory code for pubcos. Punch are under pressure big time
Statutory code, if implemented, will seriously reduce revenues from the estate. Stakeholders must be concerned about this development
The "core" estate consists of struggling licensees & tenants paying excessive rents and tied prices many of whom will cease trading in the coming months/years. The business model cannot work in it's current format. If and when the government's statutory code of practice comes in to force the company's revenues, in theory, will reduce significantly over time. How can the restructured debt be serviced? Further asset disposal? What is the true valuation of the estate?
Get out now at this price. Last chance
Anybody know how much they buy a keg (11 gal) of say Fosters for? Must be cheap with their buying power on tied pubs
What happens to all the long suffering leasees and tenants if the do go?
I know one of their tenants who runs an excellent pub but cannot make a decent living due to massively high rent and the fact he has to buy all his draught beers from Punch (they brew nothing) at prices that do not allow anything like a decent margin. The freehold value of the pub has halved since Punch purchased it some years ago. The current business model will never work.