Marston's Share Discussion Threads

[jeffian] 28/3/2018 23:34

I don't know why they would. Wholesaling/retailing through fixed property outlets has been a disaster for most UK brewers since the supermarkets decided to offer booze as a loss-leader. Whitbread ditched Threshers and Conviviality's Matthew Clark wholesale business was sold to them by Punch Taverns. Maybe one of the international brewers such as Anheuser Bush mentioned in the article see some value in it but I would be very surprised if the domestic brewers like MARS or GNK see any compelling value in it.

[septimus quaid] 28/3/2018 21:47

Any rumours?

Bargain Booze bust: Retailers shares have "little-to-nil value" as a major brewer is tipped to take over Conviviality

[the deacon] 23/3/2018 12:44

Marston's PLC using EPIC/TICKER code (LON:MARS) had its stock rating noted as 'Retains' with the recommendation being set at 'BUY' today by analysts at Liberum Capital. Marston's PLC are listed in the Consumer Services sector within UK Main Market. Liberum Capital have set their target price at 140 GBX on its stock

[chinese investor] 22/3/2018 08:32

Slow Recovery !

[spacecake] 19/3/2018 12:40

It's 1998 all over again.

[careful] 18/3/2018 13:34

Ian Cowie ramping up one of his recent purchases Green King.
Todays Sunday Times.

Almost the same sector as MARS, shunned since Brexit,
rivals closing should help survivors etc etc.

[muffinhead] 17/3/2018 22:26

Chart of the average pay packet since the financial crisis?

Maybe minimum and living wage inflation will lift all boats that find their way to a local M pub

Quarterly chart... city farts seem nostalgically to be gunning for the 80's

Significantly in the last 12 months 634 million shares have been traded, equivalent to the total float



free stock charts from uk.advfn.com

[karadas09] 17/3/2018 12:16

I agree that most branded pubs aren't a patch on a good local independent pub. But there is no denying that branded pubs are very popular especially in town centre locations and also out of town for family dining. Seeing as Marstons have decided to cover both, and seem to drive almost 50% of their profit already from the branded franchised pubs, I think they could do it even better. I was recently on business in Newcastle. The first night I ate in the Pithcer & Piano on the Quayside, which is a very nice Marstons pub in a great location, but it was pretty much empty. Also £10.95 for a burger! The next night I ate in the nearby Brew Dog place on Dean St. which has a very simple pizza and beer offering, largely they sell and promote their own craft beers which have a strong brand identity. The place was packed - on a weekday evening around 7.30pm and I took the last available seat.

At the moment these shares are great value, but if they moved to a price that represented fair value I would sell them unless things change.

[jeffian] 16/3/2018 22:57

Yes, but that is in their directly managed estate. They do not have that control in their tenanted estate where the tenant is free to adapt his offer to what he thinks is local demand. The irony is that, when I was in the business (admittedly many, many years ago) it was precisely the 'consistent identity' which was considered the kiss of death! 'Branded' pubs take away all the individuality that is the usp of the British Pub.

[karadas09] 16/3/2018 19:21

@jeffian Can't really disagree with the facts you state there, but I can explain my point a bit more. JDW have a very clear offering. They sell half decent food at very cheap prices and they offer a large selection of very decent beers also at very cheap prices. You can go to any town in the country and you know what you will get with a Wetherspoons. Its been working out very well for them, and they are the clear market leaders in what they do.
Marstons offering is certainly more diversified. They brew dozens of brands of beers, premium and budget. They have own brand destination and premium pubs across several brands, they have taverns, managed pubs, somewhat independent tenanted pubs and almost entirely independent leased pubs. They also have increasing numbers of rooms through a hotel offering. To me it's too fragmented to be fully cost effective and with variable standards and no strong identity from a customer point of view.

In the last annual report the CEO said "We identified several years ago that, in locations where Marston’s has direct control over the retail offer, we are better able to deliver a stronger consumer proposition with more consistent standards across the estate." So I would like to see more of this, a more consistent identity and a stronger customer offering.

[exel] 16/3/2018 18:04

Good summary, Jeffian, many thanks! ex

[jeffian] 16/3/2018 16:35

"I would just like to see them streamline and focus their business a bit more."

Focus on what?

The market always lumps pubco's/brewers/pub retailers together as if they are all the same thing. They are not. JDW is purely a pub retailer; it either owns or rents retail premises from which it sells food and drink, buying-in the products at wholesale prices, selling them at retail prices and pocketing the difference (Gross profit) which cover its overheads (property costs, staff etc) to leave a net profit. Sure, the premises it operates from are called 'pubs' but it is essentially no different to Greggs the Baker or M&S. It is a retailer.

MARS (and GNK) have what is called a "vertically integrated model". That is, they cover every aspect of the brewery/pub business from brewing the beer, distributing it, acting as wholesalers to their own tenants and the wider free trade, owning and operating a property portfolio which includes production facilities, logistics capacity and pubs which they either let out to others or operate themselves, deriving income from several revenue streams including wholesale, retail, rent, gaming machines and so on. Yes, they have a Managed Estate which is comparable to what JDW do, but they do so much more. MARS and GNK are two of the few left who do this. "Focus" led to the likes of Enterprise Inns (now EI Group) and Punch Taverns who cut out all the complexities of running an integrated business and simply owned the pubs, buying product wholesale to sell onto their tenants at a higher price and charging rent - and look where they ended up! The argument is that the diversity of the business gives it a degree of resilience.

[careful] 16/3/2018 16:27

debt not that high.
gearing at about 70% with good cash flow.
easily manageable.

[spacecake] 16/3/2018 16:19

I keep thinking that the very high debt and long maturities suite the board just fine, no takeover interest likely, just keep collecting the salary.

[karadas09] 16/3/2018 15:51

Interesting to read the JDW statements, overall I think they are much more driven and focussed business than MARS. Despite that I can't find much value in the current share price at JDW, and will stay invested here. MARS has a current price/cash flow ratio of less than 3, a decent property portfolio and are not badly run. I would just like to see them streamline and focus their business a bit more.

[chinese investor] 16/3/2018 12:47

If things get really bad MARS can sell their property to property developers !

[septimus quaid] 16/3/2018 10:08

MRF, which is wiser, attack a man for the way he looks or his point of view?

GD did you read that in the Sunday Sport?

[gerdmuller] 16/3/2018 09:47

Isn't he the one that got farmers to breed chickens for him with four legs so it would half the cost of the Sunday dinner in his bars?

[my retirement fund] 16/3/2018 09:24

Wouldn't you feel a little frightened too confronted by some rosy red cheeked alcoholic at that time of the morning?

[septimus quaid] 16/3/2018 09:19

Tim Martin was on Bloomberg (a real lefty, Brexit bashing outfit) this morning, giving it some.

A pure joy to watch, the drinker's answer to Nigel Farage, Tim managed to get all his points across, unfair taxes on the brewing industry, opportunities presented by Brexit, etc, in the minuscule time slot he was given.

The two Bloomberg stooges looked like frightened rabbits, trapped in a headlight.

None of your left wing luvvies, commentariat and politicians give a stuff about the pub trade as they primarily see it as male, white and working class.

[cc2014] 16/3/2018 08:45

Best quote ever re Jamie Oliver

In JD Weatherspoon's interim results, the pub group said it expects higher costs in the second half of the financial year.

These include rising pay and, according to chairman Tim Martin: "All sorts of taxes [such as] Jamie Oliver's sugar tax which he got us to pay but couldn't pay himself.

He says the sugar tax cost the company £3m. "So it's an era of rising taxes for pub and restaurant companies which makes life more difficult as people are saying."

[chinese investor] 16/3/2018 08:13

I Love Bargain Prices !

[lord gnome] 15/3/2018 22:38

Marstons obviously doing their bit to combat Britain's obesity problem then, judging from people's comments on portion sizes.

[redartbmud] 15/3/2018 21:28

I nipped into one for lunch a couple of weeks ago, as it was very conveniently situated on my route.
Using my Privilege Card I felt that I had vastly overpaid. The menu was full of choices that were basically a theme on the same thing. Very easy to prepare and serve, but absolutely no variety.
The portion size was very small for the price.
It was virtually empty at the height of the lunchtime trade; not even a regular boozer at the bar.
Just MHO.