Marston's Share Discussion Threads

[exel] 23/1/2019 07:31

Hasn't taken too long for the new Chair to make his presence felt.

[baticle] 23/1/2019 07:30

I'm good with the update. I don't mind having a stock Yielding 7.5% and if they continue buiding the value behind the business and reducing debt the Sp whilst not flying will be ticking up over the course of time.

[spacecake] 23/1/2019 07:29

MARS sales growth are not keeping up with inflation and still not reducing debt enough quickly enough. The remuneration of the directors needs to be readjusted down to fit flat future returns.

[ny boy] 23/1/2019 07:26

Better results than I was expecting and food sales is making a come back, reasons to be cheerful imo

[redartbmud] 23/1/2019 07:24

QP

Absolutely correct.
Bet the executive pay will increase year on year.

I am going to the AGM and I intend to ask the question.

red

[quepassa] 23/1/2019 07:18

Snookered themselves?

"we are committed to maintaining the dividend at the current level during this period"

"this period" being presumably "between 2020 and 2023."


That reads to me like they are saying zero dividend growth until 2023.


So, apparently no dividend cut but no dividend increase for up to 4 years.

This share will trade like a bond with a yield - and given the stated very cautious and uncertain macro outlook, this share has had its wings well and truly clipped in my view.


ALL IMO. DYOR.
QP

[skinny] 23/1/2019 07:01

Pubs

Total pub like-for-like sales growth for the period was 1.4% including strong trading over the Christmas fortnight, with like-for-like sales growth of 5.7%. Total pub margins were broadly in line with last year.

In Destination and Premium, like-for-like sales increased by 0.5% in the 16 week period, including like-for-like sales growth of 4.5% in the Christmas fortnight.

In Taverns, trading has continued to be strong with managed and franchised like-for-like sales growth of 3.2% including growth of 8.1% in the Christmas fortnight. The performance of our tenanted and leased estate was robust, with earnings up 1% in the 16 week period.

Marston's Beer Company

We continue to make good progress in Beer Company with total volumes up 3.5% and own brewed and licensed volumes up 2.5% with particularly strong performances in both the Free Trade and Off-Trade channels.

Capital Allocation Update

Following the guidance on cash flow improvements provided in November 2018, the Board have further reviewed capital allocation plans going forward. As a result of this review we are now committed to targeting a £0.2bn reduction in net debt to £1.2bn by 2023.

This will be achieved as follows:

- A reduction in new-build investment to around £25 million per annum from 2020 onwards, with investment weighted towards pubs with accommodation, where we are seeing the strongest returns.

- The disposal of £80-90 million of certain non-core assets in 2020-23.

- Through the improvements in free cash flow set out in November 2018 relating to the final salary pension scheme (which has a modest deficit that is expected to be eliminated within three years), the securitisation, and reduced organic capital expenditure.

Although new-build investment is being scaled back, new-build pubs and accommodation deliver strong returns and will continue to contribute to growth in Group earnings. In addition, the reduced level of estate expansion will facilitate increased focus on generating like-for-like profit growth from the core pub estate.

In light of the actions described above the Board are committed to maintain the dividend at the current level during this period of debt reduction focus.

Commenting, Ralph Findlay, CEO said:

"Marston's continues to perform well and this is a creditable performance in a challenging market. Taverns and the Beer Company both delivered strong trading over the core festive period in particular, continuing the trajectory of recent months, and our managed food-led pubs also returned to growth.

"We operate in increasingly uncertain times from a political and macro-economic perspective and, as such, we remain cautious about the potential consumer outlook until there is more clarity. However, we are confident of delivering further profitable growth this year, whilst focussing on our strategic priorities of generating cash and delivering our stated £0.2bn debt reduction target between 2020 and 2023. In addition, we are committed to maintaining the dividend at the current level during this period and believe that the combination of these actions will drive long term value for shareholders."

There will be a call for sellside analysts at 0730 hours today. Please contact Andy Low at [e-mail] or 020 7866 7886 for the dial-in details.

Forthcoming Events

Please find below the forthcoming reporting dates for the Group, which are also available on the investor calendar on our website - www.marstons.co.uk/investors


2019 Interim results

2019 Preliminary Results

15 May 2019

27 November 2019

[janekane] 23/1/2019 05:02

Food luck for later today

[ianian4] 22/1/2019 19:59

Good luck tomorrow

[poolies3] 22/1/2019 19:41

Been in two Marston pubs in Last 3 days
Both chokka
January is a bad month for the pubs
People tighten there belts but look at comparison to last year
The beast from the the east
Weather this year
Perfect
Bought more today a no brainer

[quady] 22/1/2019 16:25

Sounds pretty bad QP. What are you predicting for the trading update tomorrow on the first 16 weeks? Negative total revenue? Negative like-for-like?

[quepassa] 22/1/2019 14:08

Dry January

hxxps://alcoholchange.org.uk/get-involved/campaigns/dry-january


Organisations like this are beginning to have a real impact on UK drinking habits. Lots of good industry stats :-

hXXps://alcoholchange.org.uk/


ALL IMO. DYOR.
QP

[2wild] 22/1/2019 13:31

The pubs I've been to have been very busy over the last 2 weekends.

[quepassa] 22/1/2019 08:36

Dry January apparently drier than ever before

[lindowcross] 16/1/2019 08:13

Satisfactory update from City Pub Group today. It is continuing to buy, develop and open pubs. It's even opening a vegan pub! This industry is not moribund - there are opportunities for good operators.

[the deacon] 14/1/2019 10:18

Yes I should have clarified. I meant the wider market. Nothing stock specific

[jeffian] 14/1/2019 10:09

Only in the macro-economic sense if the whole market reacts one way or the other. At the operational level, I can't see that Brexit will have any impact at all of the UK pub market.

[the deacon] 14/1/2019 09:57

I think the way the Brexit process plays out will have a big impact on whether this retraces or not.

[chinese investor] 14/1/2019 08:22

107p this month !

[quady] 11/1/2019 14:43

I'm going. Bit annoyed it's been moved earlier and the token cost saving measure. Means an overnight in a £35 'hotel'. I plan to go to Burton and visit the Marstons brewery there on the Tues afternoon, then go to Banks Park Brewery on the Wednesday after the AGM. Few questions I want to raise. 1) What is the dividend policy? It was 'progressive' in the interim results, flat for the year and the full year results made no reference to the current policy. 2) When is the CW acquisition due to start being EPS positive? 3) Previous presentations stated further growth pipeline had 2019 as an acquisition year - is that still on the cards, if so what type of assets and how would they be preferably funded. Welcome other suggested questions...

[cc2014] 11/1/2019 13:46

I've decided to go the AGM on the 23rd.

I note this year it is at 10:30 and there will be no bar lunch. How disappointing.

It would be good to meet anyone else who is going.

[janekane] 11/1/2019 08:44

We get a trade update around about the 23rd of this month I've been in contact with a Mars manger who I know and he was 16 % up on last year Christmas trade
he stated that most of his fellow managers was also showing good % gains over last year 2017/2018

[chinese investor] 11/1/2019 08:27

Imminent !