RE: Daave -there you have it from Fairdealer2 Sep 2020 09:39
barchid,
Tax Planning is an essential. My Accountant utilises EIS investments to reduce liability. If as rumoured the Chancellor is seeking to raise a minimum of £20billion p/a, CGT is a soft target. The introduction of Tax on individual short term transaction gains would not be difficult to implement. Just a thought, what is certain HM Gov have an enormous financial hole to fill,
I reduced my holding in MARS a short time ago basically on the back of the company's indebtedness and the dependence on Carlsberg. As many I nvested some 4 years ago on income and solid assets. IMO it started to go wrong when the company became Aquistitive especially the Charles Wells deal which created an over-borrowed situation at a time when the speed of Pub closures was accelerating. Marstons were building it's accomodation/motel business, however the development programme hit the buffers in the summer of 2019 when without notice some schemes were pulled even though contracts were in place. Failure of the Pitcher and Piano sale to complete and then what appears a " fire sale" to Admiral, indicated concern within the BOD to reduce debt , possibly due to pressure from Funders! This was all before COVID and the JV agreement ( discussions with Carlsberg had been underway pre Christmas). What occured in March dealt a devastating blow too virtually every trading company in particular those in the hospitality sector where some had the foresight to bolster balance sheets with fund raising, Whitbread for instance and Fullers who have/are in a position to pick up distressed companys.
Marston's SP is sticking at it current level becuase Major Investors have comfort from NAV and the uncertain future which effects many Businesses. Marstons with the brewery business going, needs to diversify, almost re-invent itself , the hospitality sector is in danger of over-supply, it is critical we find niche and innovative outlets. This all cost money and it is difficult to see how Marstons , given the present state of play, will be able to fund without going into the market. Current borrowings must reduce, the JV ties the company's hands in respect of asset disposals. Until obscurity of the future is cleared, many investors will sit on their hands.
Do wonder if we need a more dynamic team at the top as they could be stale and lacking ideas.??
Jim, and others, understand your comments regarding " squabbling" unfortuneately some of these boards have become "bear-pits" since lockdown. That said I am not prepared to sit idly by reading nonsense and abuse from uninformed posters who have an agenda. My agenda is to see Marstons succeed and build shareholder value, long term value not short terms gains for Traders.
The mission is set, destination is what we need to know.
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