The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
As soon as restoration of dividend is confirmed this will significantly re-rate.
I expect that news to be delivered at that Q2 res on 27th September, for divs to recommence in Q1 next year.
My initial SP target for 2023 year end is 150p
After this great update attention will inevitably turn to the Q2 Res which are due 27th September.
With the current growth and profitability of the business it is a given that the previous net debt of £57.2m will have reduced further, and probably significantly.
Although recommencement of dividends cannot take place under the terms of the current loan agreements, the final maturity of the tranche A loan is 31st Jan 2024 which removes the last obstacle to dividend resumption.
Therefore I expect the Q2 res to make forward statements about the resumption of dividends that should give further impetus to the re-rating of this undervalued share.
Tom,
NAV in recent accounts was 98p, much of that value being freehold value of their owned sites.
I am not normally a fan of buybacks but I tend to agree with Zac that it may be a good option with LGEN atm.
If the next results show the dividend is well supported and that there is additional cash able to be distributed I would support buybacks at this low SP.
Absolutely crazy drop that I can only assume is because they got caught up in the general market drop today.
To me this looks significantly undervalued and I just bought more.
If the SP stays at these levels for long I will liquidate some other shares for a further top-up here.
This is now >5.5% yield with good prospects for capital gain so is a strong buy from my point of view!
Isn't that a strange rationale for Cevian to completely exit?
I would have though that having an investment in a company whose performance and future outlook was "not reflected" in the current SP was a good investment!
Just raided the piggy bank and bought a few more at 502.6.
After recent results and forward outlook I couldn't resist!
What do you base that on Jeremy?
No mention of dividend payments in todays RNS!
Do any ID docs or proof of shareholding need to be presented to gain entry to the AGM?
Agreed that these results are reasonable, but not great.
Positives for me were:
-£12m debt reduction (any reduction welcome but still a long way to go with overall debt at £1.2bn!)
-trading period does NOT include easter or the May bank holidays which seem to have traded well
-board report comment that most of profit is generated in H2 augers well to next trading update, which based on 2022 announcement should be around end July
16 May 2023
MARSTON'S PLC
RESULTS FOR THE 26 WEEKS ENDED 1 APRIL 2023
CONTINUED STRATEGIC MOMENTUM: REVENUE AND OPERATING PROFIT GROWTH, POSITIVE CASH FLOW AND CONTINUED DEBT REDUCTION
Marston's, a leading UK operator of 1,440 pubs, today announces its Interim Results for the 26 weeks ended 1 April 2023.
Underlying*
Total*
2023
2022
2023
2022
Total revenue
£407.0m
£369.7m
£407.0m
£369.7m
Pub operating profit
£43.1m
£39.9m
£43.1m
£45.9m
Income/(loss) from associates
£2.2m
£(2.0)m
£2.2m
£(2.0)m
Profit/(loss) before Tax
£(3.6)m
£(7.5)m
£(38.1)m**
£25.6m
Net profit/(loss)
£(2.9)m
£(6.1)m
£(28.8)m
£19.4m
Earnings/(loss) per share
(0.5)p
(1.0)p
(4.5)p
3.1p
Net cash inflow/(outflow)
£11.5m
£(8.9)m
NAV per share
£0.98
£0.71
* All activities relate to continuing operations
**Includes a £34.5 million net loss in respect of interest rate swap movements; a partial reversal of the £109.2 million net gain reported in FY2022
Revenue and pub operating profit growth, despite macroeconomic environment
· H1 like-for-like sales up 10.7% vs last year and up 17.9% vs FY2020
· Drink sales continue to perform well and food sales were encouraging, demonstrating the trading resilience of the Group's predominantly community pub estate
· Increase in pub operating profit: £43.1 million (H1 FY2022: £39.9 million); due to the seasonal nature of the business, the majority of profit is typically earned in H2
· Improved share of CMBC's profits: £2.2 million (H1 FY2022: loss of £(2.0) million)
Positive cash generation, debt reduction, continued NAV momentum and extension of bank funding
· Operating cash inflow of £69.9 million (H1 FY2022: £30.2 million) and net cash inflow for the period of £11.5 million (H1 FY2022: outflow of £8.9 million)
· Continued progress with debt reduction strategy: net debt excluding IFRS 16 lease liabilities reduced by £12.1 million to £1,204.1 million (FY2022: £1,216.2 million)
· Net asset value (NAV) per share of £0.98 (H1 FY2022: £0.71)
· £24.3 million generated from non-core strategic disposals to date at 39% ahead of net book value, with disposals totalling £50-60 million anticipated in FY2023
· Successfully secured amendment and extension of banking facilities totalling £340 million, comprising £300 million RCF and £40 million private placement
· 63% of the £65 million capital expenditure earmarked for FY2023 invested in H1, thereby maximising the benefit in H2
Continued evolution of pub portfolio
· Well-positioned, predominantly freehold pub estate, with limited exposure to city centres and community pubs continuing to benefit from consumer lifestyle changes
· Simplified estate categorisatio
158 to 160
Yep, I'm very happy with iag res and expect a good set of res from ezj also.
Just had further top up at 484p which seems a great price to me.
There is a risk that any underperformance in IAG results tomorrow or other general market jitters might have adverse impact on EZJ SP, but I'm confident in EZJ results later this month, and that this is a great mid-term investment.
Within 6 months I expect to see EZJ SP easily north of 600p
Thanks for your valuable input Shaun_LSE
don't you mean wrong username Simones
Simones answered the question posed to Carltt.
Oops
WTF does this share have to do to get a re-rate?
I get that there are some macro financial market jitters, but the drop today is more like a share that had poor results rather than one that outperformed market consensus and announced quarterly profit of £2.3bn!
Meanwhile the FTSE100 has risen slightly on the day.
LLOY is my biggest holding but boy is it my most annoying!
I see from the short positions tab that GLG partners have an open short.
Unless the LSE information is out of date that could be a very bad position to have open short going into results day!
Gunsup,
I am not disagreeing with your suggestion of a reverse stock split (consolidation), however I don't think I have ever seen this approach add full value i.e. a 2 for 1 consolidation does not double the SP.
The upside of a consolidation would be that the SP would see an immediate impact rather than the drawn out process of slow SP change caused by a buyback.
Honestly I would be happy if the Bod continue buybacks, or go for a consolidation, or any other appropriate mechanism, as long as they to reduce the number of shares in issue which I believe is a major issue for the business.