Mar City Share Discussion Threads

[a2584728] 04/2/2015 11:13

I think you need to lock these away for a number of years to see it back to the 140's, they have spent a lot of cash on high value land which needs converting into cash to develop other sites. Short term it's going to be static in my opinion.

[badtime] 04/2/2015 09:43

Anyone a few on support using the chart?

[badtime] 28/1/2015 22:16

Had mentioned earlier on the the thread about land bank...my concern was whether they were buying at the top of the market

[cockneyrebel] 28/1/2015 18:34

Yes, I do agree that buying land with the cash isn't a bad thing in itself and if that's where it has gone then that's understandable.

I'm still not sure I like the cashflow statement - it looks unusual to me but perhaps I'm looking for a reason not to buy when I don't like the chart.

Anyway - value gets outed in the end if the mkt is mis-reading it.

All imo

CR

[melody9999] 28/1/2015 18:22

Market is imperfect. But remember MAR are spending on building up their land bank as this cut from the half yearlies in Sep 14 states.

Cash and cash equivalents at 30 June were reported at GBP4.1m (2013 H1: GBP1.7m), whilst debt was reported at GBP9.2m (2013 H1: GBP1.2m). Net debt at 30 June was therefore GBP5.1m (2013 H1: net cash GBP0.5m), which equates to a cash outflow of GBP23.1m in H1. The cash has been used to fund land acquisitions and work in progress on sites acquired in 2013 which will translate into the sales that underpin the further growth forecast in H2.

This is different from 'burning cash' which makes me think of some loss making .com startup. In addition MAR have no trouble obtaining further finance:

Additionally, we announced on 31 July 2014 that the Company's financial resources have been further strengthened with the signing of a new five year GBP40m Revolving Credit Facility, which will facilitate the acquisition of further additional sites in the coming year.

However, coming back to CR's point, it could well be that the market perceives this land bank acquisition as cash burn - because their reference tools just analyse raw figures. I think we may get some press after this TU meaning this could be an opportunity to enter at a good price.

[cockneyrebel] 28/1/2015 17:57

Perhaps the market is pricing it properly The Shuffle Man.

In my experience when a co puts out a gang busting statement like today and the share does naff all then there's often a reason imo. Investors don't turn a cheap stock down for fun imo.

Looked at this several times but the chart just says walk away at the moment.

Perhaps there's a clue in the near £3m outflow of cash from operating activities at the last full year results? They issued £34m in shares, spent £5m on an acquisition and that left £27m so even allowing for that £2m went out the door with that all aside.

At the interims £21m went out in operating cashflow! What are they doing? They started the interims with £27m and ended it with £4m. That is galloping through cash and they need a lot to come in quick if they are burning it at that rate imo.

Just an observation - just trying to pin point what it is the mkt doesn't like.

All imo/dyor - perhaps the market is wrong but I'd be careful.

CR

[the shuffle man] 28/1/2015 16:29

This company is not being priced correctly by the market. It is at a large discount to its listed competitors, so either they are massively over valued or MAR is undervalued. If MAR were to trade near its Peers a share price of at least £1.50 could easily be justified. Too cheap IMO.

[badtime] 28/1/2015 10:07

Muted share price response...some sort of government initiate (election promise?) re social housing might have a nice impact

[firtashia] 28/1/2015 09:53

MAR said its profits would be H2 weighted, and they were. It said its profits would treble, and they did. Before buying into these a little while ago, I googled the name "Hamilton Anstead" to check out his record, and the word "transformed" was the first word I saw. According to digital look, MAR expects to almost double revs and PBT in the next two years. At this moment I have no reason to doubt them.

[someuwin] 28/1/2015 08:02

All very positive!

[hootster] 28/1/2015 07:24

Strong Trading update worth noting the Increasing demand from Local Authorities and Housing Associations, the recent deal with Sandwell Council and Mar shows the potential with Sandwell investing £500 million over the next 10yrs. Mar City are now in discussions with a number other councils and Associations....


Mar City has been delighted to see a very strong response from customers including both from Housing Associations and Local Authorities. As a result the Company is now in discussions with a number of parties regarding potential joint venture new build developments. Furthermore, we continue to experience an equally excellent response to new open market sales and on-going enquiries.


-- Increasing demand from Housing Associations and Local Authorities for new build homes.


Sandwell Council’s Cabinet has given the green light to a deal which will see 41 sustainable modular homes bought off-plan from Mar City, boosting the council’s housing stock.

Over 10 years, Sandwell Council is investing more than £500 million into house and flat improvements and replacing and building new homes.

[someuwin] 28/1/2015 07:10

RNS Number : 3145D

Mar City PLC

28 January 2015

MAR CITY PLC

('Mar City', the 'Group' or the 'Company')

Trading Update

Mar City (AIM: MAR.L), the London/South East and Midlands focused housebuilder, today provides a trading update ahead of its final results for the year ended 31 December 2014, which will be released in March 2015.

Summary

-- Profit before tax for the year to 31 December 2014 in line with market expectations and more than three fold the previous year.

-- 2014 was transformational period for Mar City with the highly successful launch of its modular technology:

o Manufacturing partner for modular homes and construction infrastructure fully operational.

o Mar City, through its manufacturing partner, now has capability to build up to 1,000 modular units per annum.

o Site acquisitions mean that the Group's land bank is now at around 5,000 plots which can provide in the region of five years supply with a gross development value of approximately GBP1 billion.
-- Increasing demand from Housing Associations and Local Authorities for new build homes.

-- Increasing open market sales in Midlands and London markets continue to benefit from Government initiative through the Help to Buy scheme.

Current Trading

Mar City is pleased to confirm that the Company will be reporting significant growth for the year ended 31 December 2014 when it announces final results in March. 2014 was a transformative year for the Company. The achievements during the last 12 months are testament to the collective efforts of everyone at Mar City, particularly in the successful launch of Mar City's new modular build apartments and houses which have received much critical acclaim. As a result of the momentum this has provided and the very strong overall trading conditions in the UK new build market, the Company is pleased to report that profit before tax for the year to 31 December 2014 will be in line with market forecasts, anticipated to be more than three times higher than the prior year.

During 2014 Mar City's launches of its new modular-built apartments in London and modular-built houses in the Midlands were highly successful and widely acclaimed. Since the launches last year, Mar City has been delighted to see a very strong response from customers including both from Housing Associations and Local Authorities. As a result the Company is now in discussions with a number of parties regarding potential joint venture new build developments. Furthermore, we continue to experience an equally excellent response to new open market sales and on-going enquiries.

Mar City's current production capability (with its exclusive manufacturing partner) will allow the Group to build up to 1,000 modular homes per annum. The Group is also developing plans to augment this production capacity through the construction of Mar City's first proprietary production plant during the current year.

Finally, Mar City is developing further training programmes to bring additional personnel, often initially non-skilled, to work with skilled trades in our business as well as introducing a structured programme for apprentices. These initiatives will help to create new jobs in the locality and also provide the Company with a degree of protection against the prevailing rising input costs in the building sector.

Tony Ryan, Chief Executive of Mar City plc, said: "The last year has been transformational for Mar City as we successfully launched our new modular technology. We now have a strong pipeline where we are in discussions with a number of potential joint venture partners and we are also developing plans to increase our home building capacity through the development of our own production facilities. We have a strong land bank with in the region of five years supply with planning permission.

"During 2015 we see a larger proportion of Mar City new homes built using our modular technology, and as demand increases we will match our production capabilities alongside that growth.

"We continue to see strong demand as a result of the Help to Buy initiative in each of our core markets in London/South East and the Midlands, where it is a particularly good match with the excellent quality and sustainability that Mar City new homes afford our customers.

"We look forward to achieving further growth in the current year as we continue to provide award winning new homes in London/South East and the Midlands."

[someuwin] 24/1/2015 19:07

Looks like MAR are building a new modular house factory!

Can only mean growth - and lots of it...

Job Reference: 01199927
Date Posted: 21 January 2015
Employer: Mar City Developments Ltd
Location: Coseley
Salary: Market Rate
Sector: Construction; Engineering; I.T. & Communications; Manufacturing Operations; Trades & Services
Job Type: Permanent
Closing Date: 05 February 2015

Job Description
COMING SOON

'Building the Future in Coseley Tipton'

Mar Modular Limited is developing a new facility to build top quality modular houses within a controlled factory environment at Coseley.

If you have the necessary skills or desire to become part of a team developing and building the next generation of family housing please submit CV to register your interest.

Production Manager

Human Resource Manager

Quality Assurance Manager

Process Engineer

Procurement Professional

Warehouse Manager Production team leaders

Administration Clerks

IT Manager

Electricians

Designer / CAD Technician

M & E technicians

Assembly Workers

Fork truck operator

Maintenance Staff


Experience in the house building industry is useful but not essential since will be provided in house.

Please send CV's to: [e-mail]

Mar House, 11 Hockley Court, 2401 Stratford, Hockley Heath, Solihull B94 6NW."

[someuwin] 23/1/2015 20:45

Broker WH Ireland expects full-year pre-tax profit of £11.6m, giving EPS of 8.3p (from £3.4m and 7p in 2013), rising to 11.3p in 2015.

[someuwin] 23/1/2015 09:38

New 'modular' council homes to be built in Smethwick

Published 21st January 2015

Sandwell Council’s Cabinet has given the green light to a deal which will see 41 sustainable modular homes bought off-plan from a developer, boosting the council’s housing stock.

An example of a modular built homeThe properties are being built on the former Atlas Metals site in Cranford Street, Smethwick, by Mar City Homes Ltd - a recognised leader in the modular construction field - as part of their 142-home development.

The council is buying 19 two-bedroom, 18 three-bedroom and four four-bedroom properties with the reminder of the homes being sold by the developer on the open market.

The homes are being built using a modular construction system, which means they are made indoors in factory conditions and then transported and assembled on permanent foundations on site.

This means they can be built far more quickly than the traditional 'wet' build system, producing new homes in weeks instead of months.

Made from the same high-quality, enduring materials as regular houses, they should not be confused with mobile or pre-fabricated homes. They are also more affordable, energy efficient and generate virtually zero-waste on site.

Initial work to clear the site and prepare for the start of the build is already underway with the council homes expected to be completed in summer 2015 when they will be added to Sandwell’s housing stock and be available for rent to council tenants.

The development also offers opportunities for construction training places and employment for local people and will boost the local economy by using local supply chains.

Councillor Ian Jones, cabinet member for jobs and economy, with responsibility for the scheme, said: “The demand for affordable family housing continues to grow in Sandwell and, along with the need to replace the properties lost from our housing stock under the Right to Buy scheme, some tenants need more suitable accommodation following the introduction of Welfare Reform.

“By partnering with Mar City to provide much-needed homes, we are jointly regenerating the area with further regeneration to take place opposite this site when work commences on the proposed Midland Metropolitan hospital.”

Tony Ryan, chief executive of Mar City Homes Ltd, said:"Mar City strongly believes modular construction is the future of UK house building and we are delighted to showcase our innovative method through our partnership with Sandwell Council.

"We are committed to building homes that benefit people's lives and communities and we look forward to building a strong and lasting relationship with Sandwell Council. By employing modular technology, we are able to deliver economically and energy efficient homes."

Over 10 years, Sandwell Council is investing more than £500 million into house and flat improvements and replacing and building new homes.

[someuwin] 23/1/2015 08:58

Trading update was first week of February last year.

So will be within the next 10 days imo.

[someuwin] 22/1/2015 14:39

So much good stuff going on here. The share price will bounce soon - surely.

[hootster] 22/1/2015 13:26

Expecting a Strong Trading update recent news shows Local councils buying Direct from Mar City.

[noirua] 21/1/2015 17:27

The long term chart in the header shows that many must be holding big profits in MAR. 25k shares at 20p cost £5k and at a 100p now £25k. So the temptation to sell is strong if it looks as if profits may evaporate further.
From an investment point of view it does look as if the company's ambition to move to number 3 as a builder and the well set up quick build modular fabrication system, is set to bring in rapidly building profits and dividends.

OUR UNIQUE MODULAR HOMES - YouTube


"Changing the face of housebuilding" - YouTube


Mar City Homes (@MarCityHomes) on Twitter


Mar City Homes Ltd - YouTube

[qs99] 21/1/2015 16:16

am considering jumping in, but the H2 weighting implied at the last trading update followed by this fall in the share price has me slightly worried I have to say. views?

[badtime] 21/1/2015 12:14

No..just a falling so at the mo

[melody9999] 21/1/2015 11:51

Trading update 03 Feb last year. Anyone know date this year? This should give us a good steer on progress.....I'm not so sure falling demand for houses will be an issue for MAR.

[noirua] 20/1/2015 00:52

Bought back into MAR City, the improving economy with fuel prices down and gas and electricity following; does point to reduced costs for families in a low interest and low inflation environment. MAR's modular system of building augers well for the company.

[badtime] 16/1/2015 17:22

Yes so it seems...I didn't mean to be disparaging to holders..its a 'good' company ..general market woes recently..pending election..house sales falling (from a report I heard recently)..etc..sentiment just seems poorHave they been buying there land bank at the top end of the market?