Member Info for fairdealer20

Any Views on the RNS?

As I understand the execs have taken up options at Nil Cost.

The basis of awards is somewhat opaque. Refers to shareholder value but metrics to determine are yet to be decided by the remuneration committee. Lets hope they are not getting greedy. I am all for performance awards. I would guess most of us here would be happy once the Dividend is returned.

Trent I guess barchid was referring to the Boeing 777

Note both have gone from "Strong Buy" to "No Opinion". Coincidence????

barchid, could they be one and the same person?

Unfair or not, it is the usual time to release News. Maybe If it were 2.00pm NY time, would that be fair???

Jimster, looks as though you have answered your own question.
Your investment strategy is not clear but suspect you like to trade.
Long term Investors will be a little more circumspect in their evaluation of the company's future prospects.

The debt as you observe is is a big issue. How the company is going to reduce significantly by 2024 is a hard target to achieve. It is possible by 2024 our 40% holding in CMBC will be Zilch and the resultant consideration will help reduce debt.
Recent history does not add confidence. The JV proceeds have not reduced debt as much as expected.
Supermarket sales have helped cash flow, however margins through these retailers are wafer thin.
The biggest asset now is the Pub/Hospitality Estate, which will be revalued in July. That valuation may be a God-send,.
We will see a huge increase in footfall these next 6 months, the unknown is will it last?
Some of us here will remember the SP at 125-130p when a 6+% div. was payed. It is going to be a long time before a return to Dividend.
Unlike other company's within the sector, MARS went into the Pandemic with big debts. Fullers bolstered their finances and are moving into High Quality Accomodation. Whitbread raised £1billion last summer to see them through this disaster. Even M&B raised funds recently. Apart from selling the Brewery and raising cash, MARS have invested in a Welsh Estate, basically as a Tenant. The wisdom of this move is yet to be seen. What we do know , Brain's, a Long established Company were in trouble and could not make a go of it. It is interesting to note Mars have their own Welsh Estate and yet savings which could be achieved incorporating the Brains Pubs, is not being done. There is an overlap of Managers serving both Estates.

If a Trader, there are one or 2 here who you will spot, the dips and rises will probably suit your strategy.
As with all stock investments, never invest more than you are prepared to lose.

AIMO, DYOR, GLA

Methane is the gas most abundant on the Planet, is Natural Gas as we know it and under the sea floor. Hydrogen constitutes 80% of Methane gas. Hydrogen is a pure gas and not a blend. In blend as is likely with oxygen, needed for combustion, the consequential result produces water. Hydrogen under control, is a perfect energy source, completely friendly to the Environment.
Equinor is constructing what will be the World's largest Plant on Humberside, to produce Hydrogen.

Could be wrong but understand Shell use natural gas as a feeder stock to produce Hydrogen, the totally green fuel. of the future

Oh dear has Billy Smart given you the sack? Never mind Longleat have a vacancy in the Rhino enclosure for a S*** shoveler, but be careful they a dangerous horn at the front. That's the opposite end to the arse.
Did you realise Marstons are no longer a Brewer?

barchid, trent,

we will never know how far Platinum were prepared to go. I do beleive given tough negotiating an offer much above 105 would have been achieved. The problem as I see it there were some big Ego's involved, Brain's chairman who was desparate to prop up his company which had every signs of going under. RF played his cards to quick, possibly because there is/was some bonhomme, he did not want to see a fellow Exec ending up at the Labour Exchange. Anyone who believes he (RF) played a blinder must be an Ostrich. Had he waited could have picked up the Welsh conglomerate an far better terms. I believe RF was head-banged into swiftly completing the Brains deal as Platinum were pushing at the door, possibly with Institutional investors already on board. It is interesting, both major players in the Brain's transaction, John Rhys , resigned almost as soon as the deal was completed and now RF is taking a bow.
Would not be surprised that Institutions were unhappy how events were managed.

Trent we cannot be sure but any take over does not mean existing PI's have no choice. New shares can be offered in the new entity.
The difficulty for many of us here is Div which topped up pensions and now not and unlikely to return for some time. I will be amazed if the loan note waivers do not include an undertaking not to pay divs until debt is at a given level.

AIMO DYOR

Barchid, hell the Police are going to have their hands full! Maybe HMG will recruit another band of Pilgrims who will either arrest or escort valued Patrons home.
The enforcement of Law and Order must/will cost another fortune. When are we likely to escape this quagmire.
Maybe Robinson Crusoe had a better idea!!

Einstein (Tesla man) returns , no real ideas just ramping clap-trap. Readers might take him seriously if he were consistent. in the space of a few hours he goes from " No opinion" to " Strong Buy". He does have trouble with numbers. a couple of days ago we were to manage more Welsh Pubs than the Company have stated.
All hospitailty/pub groups need a huge turnaround, a good summer is necessary to make a dent in losses already recorded.
Some of us were suggesting when the JV was on it's way, the company needs revitalising with some innovative ideas, Public Houses are an expense asset to manage and maintain they need to have a high foot-fall which is not just 10-12 weeks of a summer, weekend trading is not an effiecent use of resources . Don't see anything in the " wish list" that inspires a dynamism neccesary. Unless we get an Ideas Person as the new CFO, it will be a continuation of the same old.
Carlsberg are unlikely to T/O they are not into managing/investing in Pub Chains, their philosophy is Production where capital to income ratio is greater than capital tied up in commercial property which has a relatively low income return to asset value.
The sector as a whole has and will face significant financial headwinds, even given a brilliant summer and consequential recovery. Mars has one anchor that Whitbread, Fullers and to some degree M&B do not, a debt pile of £1.6billion. Income generation is critical going forwards. Any interested predator may be a little wary after the Platinum affair which sent a clear message.

AIMO DYOR GLA

Trent your loyalty is admirable. Things have got to get better otherwise Threadneedle Street here we come.

Even though we read the strength of the balance sheet, I think Mars are going to need one hell of a tail wind to get £1.6 billion debt down by 2024. The consideration from Carlsberg last October has reduced debt but there seems to be circa £90million used elsewhere. The report ramps up the quality of the Brain's estate , yet the well touted original deal stated as I recal l156 pubs . Later we were told when RF signed the completion, 40 pubs were of poor standard and so far as we know are either being improved, Sold or demolished. This raises questions:- was there a reduction in the payment originally agreed with Brains in December or did the cash consideration remain the same for a lower number of Pubs.? Brains still own the Red Dragon Brewery . a relatively modern brewery. Is it reasonable to believe the Managment Agreement requires an agreed barrelage to find it way to Welsh pubs. If this is the case have Carlsberg agreed? Many of these issues should be covered within thee agreement, which seems difficult to peruse.
Shaperite talks about the support of Carlsberg, does he understand the relationship between Marstons and Carlsberg?
I hope others have read the accounts and form an opinion which could shed light on a numbers of issues.

YoYoMa, Barchid,

Good morning, like wise I will study this exceptionally long report. What a pity the Brain's agreement has not rated such a lengthy disclosure ( something I have been hammering on about )

My Initial observations are is it a wish list for the future? The very long list of projections and where we want to be, is mesmerizing to most Investors.

I am particularly interested to see the contribution to Mars from the JV. Ok it is trying times, however the Brewery when solely owned earned £22m profits we have now moved into a share of CMBC which has returned ( sorry lost) £22million.

I want to dig down into the use of the £239m received from Carlsberg, hope there are no surprises.

Check the number again. You have included 40 which are regarded as below standard and in need of serious enhancement.

No wonder RF has decided to call it a day, his advisor has provided crap info again.

How many Brain's Pubs are opening next week??

Sorry to say I told you so.
The Brain's estate requires a hell of a lot of refurbishing. The full details of Mars agreement has never been disclosed, I do wonder what conditions are in place that requires Mars to spend on the updating..

The whole agreement was so hastily signed ( to send a signal to Platinum), do wonder if a thorough survey was untaken of Brain's properties. Interesting Brain's Chairman stepped down at more or less the same time RF decided to retire.

YoYoMa I tend to agree. Even with current market conditions , the SP should not be declining so rapidly gven the " promise " of a maiden dividend. Knowing the protocols to be completed why make statements intending to a pay a dividend? Graham and Majid need to do something to redeem confidence.

London agree with you views as I emphased earlier. Suspect it is an " Old Pals" act. Have been saying for months since befre the Carlsberg deal, we need some fresh thinking. RF's vision to create a Pub and Accomodation business of Excellence, took a hit in my mind when he decided to Manage a bunch of below par pubs in wales. The company needs to be more adventurous now the leisure industry is begining to re-open. There are opportuinites here as some/many facilties will not open or are facing financial pressures. Unfortunately this is an element which constrains Marstons.

Andrew is a numbers man so expect some serious cuts but not at the expense of service delivery as this will ultimately impact on customer satisfaction

It is quite bizarre Oil heading North and we are Going South. The absence of Doc is strange as his "Coal-face" knowledge did provide valuable information. Maybe he is a clever Investor!!