Member Info for fairdealer20

Try to be a little less acrimonious and gain some knowledge of the company in which invested.

If you disagree with the facts as stated, say so and not just say the market decides. Yes the market always determines and that is why the SP here is less than the Published NAV. THe reasons have been set out for anyone to read and challenge.

The fact Brewery valuations has not been questioned as have the rational why Shareholders are denied the right to approve, needs explanation. Shareholders are entitled.

As previously stated, shareholders of any company, would be surprised if an incoming Chairperson did not invest.

Traders have predictable motives when ramping and ridiculing known facts.

Having knowledge of Marstons and this business sector generally, I share information with interested Investors. It is everyone's perogative to ignore or digest. It is an individual investor's responsiblity to do their own research before commiting to an investment.

Novice investors do exist and are gullible, have come across many in the years I have invested, and do not wish to see anyone being persuaded to part with hard earned cash, that they could lose.

Just reflect on that!

Hellodave, read the accounts as at the end of 30th March 2024. The Loan debt have been reclassified due to the scheduled loan maturity not being met.£329m is transferred from Non-current liablities to current liabilities.

Current liabilities £509.6m

Non-current Liabilities(LT Borrowings) £1303.3m

Total Liabilties £1812.9m

Rather than being confrontational, and or the sake of a reasoned debate, identify the aledged dubious words. Otherwise re-programme the abacus and shut up.

.

Whether or not the New Chairman knows more, it would highly questionable if any New Chairman did not invest.

Sweet dreams

Comments on the yesterday’s Trading report are few and from those who one has come to expect. There are many here who as confirmed by today’s trades are Traders, a penny or 2 increase multiplied several times does produce a good return. At least 1 or 2 do admit their strategy some claim to be LTH’s. Don't be fooled.

As a comparator M&B produced better figures, for the same period, sales increase of 7.3% Year to date. The MAB report contains more details of performance and highlights Headwinds to be faced in the current financial year in the form of increased staff costs due to the National Living Wage increase. These are issues that will affect all employers.

By contrast Marston’s report was shorter on detail and longer on the Brewery disposal which should concern Shareholders for the following reasons.

The original notification of sale to Carlsberg stated the transaction was subject to Shareholder Approval (Shareholder Approval Condition).

Now shareholders are told the FCA confirms Shareholder Approval is not required.

Shareholders need to consider why their consent is suddenly not needed?

Were proper enquiries made before the initial announcement of Sale to Carlsberg. If not why not?

It is entirely possible Funders, particularly the Private Funders (£20m) have conditions within the Loan Extension Agreements (agreed when the previous Loan Breaches occurred) and further confirmed in the supplementary note on the latest balance sheet.

This note emphasises an agreement made with Funders post 30th March 2024 to extend Banking facilities to July 2026 and because this goes beyond the previously agreed maturity date, those borrowings are reclassified as current liabilities. This accounting practice leaves a misleading Debt profile, something highlighted earlier.

Accordingly, the Net Debt as recorded on the accounts, amounts to £1.8billion, as at 30th March 2024

Turning to the Sale of Marstons remaining 40% of CMBC. The original JV in 2020 stated a valuation of Marstons Beer Company as £580m.

The initial value of 60% was for Marstons to receive up to £273m. In the event Carlsberg payed £267m.

Now Marstons Board are very happy to receive, without shareholder approval, £206m.

Listening to some here Property/Asset values have increased, so where is the remaining £107m?

cntd

These numbers emphasise what a good deal Carlsberg have achieved.

It gets better for Carlsberg and worse for Marstons. The Agreement of sale, which Shareholders are not being allowed to Vote, retains the Original SDA (Service and Distribution Agreement) in place from 2020.That agreement requires Marstons to retain at least 50% of its Pubs. This is a fundamental issue which I did say it was to be hoped with the latest Carlsberg deal, this condition would be deleted. It appears not.

This has a profound effect on Marston’s Asset valuation and no doubt why a predator is unwilling to pay the NAV regularly quoted. In other words, half the estate is virtually worthless unless Carlsberg remove the 50% condition.

This is no doubt a critical reason why the SP has not risen nearer towards 97p.

It is good the Board are focused on Debt reduction, which after the sale of the Brewery will become increasingly difficult.

The undervalued Sale to Carlberg without Shareholder approval, has clearly been strongly influenced by Loan Note Holders particularly the private Funders (£20m), who have become more and more nervous.

For ALL LTH’s the company must recover. Most rampers are just feeding off the hype they try to create and apart from their own Bank Balances do nothing of value for the Company.

RG does have form when holding significant % of different company's and then off-loads which ultimately pulls the SP down. It is difficult to understand the "Welsh Wizard;s" strategy.

An increase in sales is better than a decrease, however less than 2.5% during a period well ramped here (Euros and other major sporting events) is not spectacular. MAB release their trading statement tomorrow, which will serve as a useful comparitor.

It is interesting the FCA do not consider the CMBC transaction should be referred to shareholders.

There are aspects of the deal with Carlsberg that few if any have considered.

I'll return to this when others have given there opinions on today's statement.

Not invested here, but have followed the steep fall today.

Some years ago and in another industry, a similar thing happened to a listed company I was invested. On that occasion shareholders could either accept what the "Privateers" offered at annual events. That company was taken private by a group of Directors.

I would suggest Shareholders wait to see details of the "Matched Bargain Facility". Hope it is better than my experience.

GLA DYOR

Saluc it is clear you do not have a clue. Atempting to support a team who have shown little consideration about it's shareholders indicates someone who is either close to the management or has NO conception of Business.

The problem is you have little understanding of a Business that has historically been economically with the truth as evidenced by the desertion of Qualified Auditors who have not been payed. These are the very people who understand Revenue and it's relationship with Profit. Some thing you fail to comprehend.

Have a good day.

Saluc, can you explain the difference between Revenue and Profit?

DP, many of us are riding it out, however a time will come when some will take their losses. Judging by Professor Miliband's latest dictat that time may be closer than any of us want.

Miliband seems ignorant of events in NZ where the current Government have reversed the idiotic decision of Jacinda Adhern ( Labour), and are re-starting drilling off the west coast and elsewhere for fear of citizens having power outages.

Genghis, completely agree. Some here do not seem to understand Investment is all about returns, either Dividends or Capital appreciation. Words and spurious projections are meaningless until actual profits are achieved and returned to Shareholders.

Just reflect on where Carlsberg are at. They have a huge War-chest as a result of prudent commercial transactions. This has added to their shareholder value. Marstons have NO reserves, shareholder value has dropped 70% in the last 5years.

The unwise expansion engineered by past Execs, created a debt pile that is only being addressed by a continual disposal of assets.. Few business are able to satisfy the expectations of shareholders, against this background, without dramatic and a complete change of business plan, something I was suggesting 3 years ago.

As for profit margins, pre-covid values have not been re-visited by many Businesses that have survived. The last accounts here, showed a 11% margin, all and more absorbed by Interest charges.

It is to be hoped the total receipt from Carlsberg in December, will be used to reduce debt, unlike the previous payment.

This is a steal for Carlsberg, who payed £372m for 60% of the breweries, and now acquire the remaiing 40% at a discount.

Based on the previous consideration the 40% is worth £248m. With the sale of Pubs faultering are Marstons under pressure from Funders.

It is to be hoped, as mentioned this morning, the Pub retention condition is being removed on completion of this transaction.

Having agreed terms for Britvic, Carlsberg are very busy, which can only be good news for their shareholders.

As predicted many times. On the face of it the consideration agreed for our remaining 40% appears almost a gift when considered against the original payment from Carlsberg for 60%.

The full sale conditions need to be considered. Would hope given the valuation, the condition for Marstons to retain at least 50% of Pubs, has been relaxed.

Further comments later

Crocqman quite agree,. These are the very lnvestors Labour will target.

Ramper/Trader at Work???

SHAPERITE, love the ribaldry. The total debt is £1,5billon. Got a 2nd hand brick from the Crooked House, which must be worth 1/2 a loaf!!

Gatafgrip agree. Instinct as always told me the surrender of Pensacola was a decision made behind closed doors, and possibly Selene is Delt's reward for walking away?

Some have been saying for a while, Carlsberg will get 100% of CMBC eventually. They are playing a cunning game. Carlsberg have not got to where they are by being "Gentlemen"