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DP yes best to agree to disagree. Just add for the benefit of the newbies. The 2022 AGM was held on 15th June. The excelerated fund raise anounced on 15th September with special GM to approve on 30th September. The reason for the raise being drilling to commence, with Shell, in October.
As a VC am totally aware of the need for confidentiallity, however in this case planning the drill was known some months earlier and provision for funding should have been approved at the AGM in June.
Does that look like a well though out process??
Given the Political shenanigans, serenity is a bad investment, any further funding their is unlikely to produce much if any benefit to the company.
As for cash flow from Wressle, well at least that will fund the payroll.
Ireland appears another Political nighmare that goes on.
The best hope must be Africa. Lets hope our "expert" directors produce the rewards we all deserve.
For accuracy the Sept 22 acelerated book build was announced after the market had closed. The"Placing Open Offer" closed before the market opened the following day. The Offer was ONLY available to Selected Investors and was subject to a GM on 30th September as there was NO agreement in place. It was clear prior negotiations with major investors ( Michael Spencer and Richard Sneller) had occured.
It is true excluded investors could have purchased in the market at a lower SP than the Offer. However the way the offer was conducted gave select investors a larger share of the cake. Was that treating ordinary PI's with equality?
Rights issues are, mainly used to fund acquistions, provide for future growth, reduce debt. As stated earlier competitors chose to raise 3 years ago. With the exception of Whitbread, the others reduced debt. Marstons, under the control of Ralph Findlay, did not, and now for a variety of reasons the company, along with many in the hospitality sector, is suffering badly (SP). This may attract the "bottom fishers" ( here today gone tomorrow merchants), but committed investors are caught in a dilemma. Sell and move on or hold on in the hope the new Management will come forward with an innovative strategy. The Jury is out and time is running out.
In so far as Inflation being helpful, there are several factors to consider that will affect the outcome for Service sector providers. Inputs increase ( staffing costs, utility costs, Local Taxes, wholesale food costs, buildings maintenance etc).
Bars and restruants can increase prices however judging by the failure of other groups and individual traders, that can lead to customer resistance. The trick for any successful customer based business is to control costs, maintain margins and grow foot fall/output. In the current climate this is easier said than done!
DP with respect, check my earlier posts on the topic of a Fund raise. I have nothing against but have warned previous raises here have not been undertaken fairly. I'll not repeat previous experiences when I was keen to take up shares in raises.
At the current SP a Rights will be difficult to complete, apart from which Covenants in place with Funders, will be considered..
Mars missed the opportunity to raise funds 3 years ago when the SP was around 100p. Sector competitors, M&B, Whitbread and Spoons did raise in 2021 and are now in a healthier financial state.
Macq their overall debt is more than £3billion, which they have been attempting to re-finance since February. Another example how Debt can cripple a company that borrowed for rapid expansion when rates were historically low. It will be interesting to see if Stonegate does survive in it's present form. The words coming out seem to be preparing shareholders for the worst case scenario.
How the parlous state of Stonegate affects suppliers, remains to be seen.
Sam..... your inclination has a lot of substance. The problem is an Asset Breaker will have studied the JV with Carlsberg and the onerous conditions applied to Pub retentions.
Capricorn(Cairn) had a deal with Deltic Energy to E&P wells in the Southern NS. Capricorn pulled out last July on the basis the company was concentrating on Eygpt and other African Territories. They ( Capricorn) were abandoning the NS and have sold virtually all assets in UK waters.
Shaperite, just look at how they handled Tetley's! They acquire Brands to achieve a biggers market share to rival Heineken, Coors etc Carlsberg own very few Pubs. Just think about it??
Imminent is a very unprecise word!!! Could be today, tomorrow, next week, next month even next year or sometime never.
Carlsberg have Marstons in a headlock. The JV requires Marstons to retain a minimum of 50% of the pubs held at the date of the JV. The tranche of Brains estate, around 100 Pubs, are managed on a 25 year agreement. Brains sold the Freehold of those pubs a year later, to Song Capital a European VC group.
Check the balance sheet total Liabilties (debt) exceeds £1.8billion.
Sandyman, people in glasshouses should not throw stones!
If you disagree with my posts, put forward some rational facts and try to avoid monosyllabic posts that tend to display a lack of intelect. We can then have a reasoned debate without stupidity. I do'nt post on Holy Days and can only assume you consumed to much Communion Spirit on Easter Sunday. God Forgive you!
Vespaman ( no longer Tesla... note) indicates your archaic thinking. Even today, like a never ending record, beleive a decrease in BOE rates will help Marstons. Not it's loans which majority are fixed. It may help Joe Public who has many cost of living issues to control. One glimmer of hope, this morning it was announced Guinness sales have increased 30%.
Do you know Vespaman, what Stouts CMB brew?
What is the Upper Quartile to which you refer? Is it a basket of Hospitality Co's, Breweries or just basket cases??
Back to the thread title. Many here including me, had/have great hopes of Justin Platt. It may still happen, however to be awarded "Free shares" within 3 months of taking up the role of CEO hardly sets a trend and experienced investor wants to see when the SP is sinking. Nil Cost Options should be awarded when targets are met, usually the SP achieving an approved level.
Is the Remuneration Committee having a laugh? It seems from today's RNS the Nil cost options awarded on 4th March was wrong. They (RC) intended for the awards to be more.
All this while long suffering PI's are seeing the SP sink. The awards are supposed to be part of the Long Term Incentive Scheme. What incentive have the Execs got when given shares free gratis and NO tangible increase in Shareholder Value.?
Something many do not understand, why have new investors not done due diligence. Ramping is all very well for the come day go day traders, but many have invested here sometime ago when a dividend was payed and have stuck with it hoping to recover some if not all losses. Some of us have reduced exposure expecting/demanding a change of fortunes. The realisation the hospitality sector has changed, excellerated by the lockdown, should have produced innovations that give SH's the value their loyalty deserves.
Pedro, you demonstrate quite well the problems Society have and are facing. We as a Society have learnt nothing from History and are careering head long into another disaster. For instance Food in the 1930's was regarded as being available from abroad, consequently home production was marginalised. Result Germany virtually starved us out and then rationing was needed. However after the War, Churchill stated " never again will we depend on Foreign Imports". This brought in Farming subsidies to increase Home Food Production. Over a decade it more or less succeeded. Now we are going down the same route, the population is a little more aware than in the 1930's, but doubtful it will change the outcome. End of Sermon.
Now more specifically a Company's History needs to be properly researched as corporate cultures can and have evolved which determines future policies. It is the case those responsible for Corporate Governance may play lip service to satisfy friendly and hostile investors, but if the truth be known are only serving their own greed. Investors are basically a tool of their trade. A Company's culture can change given the will and tenacity of Directors and Executives. In Marston's case , the new intake of Executives are left with the wreckage ( debt) engineered by past egotistic managers.
Given dynamic planning, which is not without risk, Justin Platt and the New Chairman, can turn things around , they will be mindful of their inheritance here which is and will continue to be a significant Mill-stone.
Oh for the World to be as you visualize .!!
Pedro how long have you geld shares in Marstons? I hope you did due diligence and understand what has caused the decrease in shareholder value. Some of us, who have been invested a considerable time wish to see a significant increase in shareholder value. Some very serious mistakes have been made by past CEO's who got so rattled attempted to restore value and reduce debt. Selling off Pubs, entering into an agreement to manage a bunch of run down Welsh pubs ( Brains). By the way you should visit those pubs they will open your eyes. Ralph Findlay did a favour for a mate John Rhys ( Chairman of Brains) before having the estate surveyed. When it was realised how poorly maintained the Brain's pubs were 7 were deleted from the final deal, they were almost beyond repair. Brains were on the verge of going into Administration when along rides a Knight in Shining Armour, Sir RF ( not yet a Knight but is on the road with his gong awarded by our Late Queen) The Brains deal was being concieved at the same time Platinum made offers for the Company. SH's were not informed of the Platinum offer for some time. You can draw your own conclusions as many of us have.
Call it negative if you wish, but the company has suffered Bad management for several years. Andreas was asked to leave and now William Rucker is riding off into the sunset.
It is to be hoped Justin Platt is working on a plan that will restore the faith for long suffering Shareholders.
Pedro imagination seems to have got the better of you. 8.8% may appear fine on the face of it, however the period in question is without doubt historically the best trading time of the year. The figures as I recall compared with the same period last year since when there was food cost inflation of almost 20%. VAT has been re-introduced. Interest rates rocketed and so on.. Increase in trade is one thing it is net profit that matters.
If things were as rosy as you believe why is the SP lingering at almost it's historic low?
Pedro what are the unique and special offerings Marstons have that our competitors do not?
Jamie...in essence correct. It remains to be seen whether or not Justin Platt can work the oracle here and produce significant shareholder value. I did suggest some years ago when the writing for Pubs was firmly on the wall, the company needed to explore different business opportunities. It may be too late now and we are at great risk of becoming a Property Shell.
There is much news this morning regarding the dire state many pubs are facing. Many have restricted opening ( closed on Mondays and Tuesdays) and closing early 9.00pm and earlier. Lordy in my youth we never went to the Pub( usually nightly) until 9.00pm.