Marston's Share Discussion Threads

[chinese investor] 15/2/2018 13:33

Great Post !

[the deacon] 15/2/2018 13:23

Langton:Marston's has this morning updated on trading for the first 16wks of its current year and our comments are set out below:Headline Numbers:• Sales, once the two weeks' snow that impacted Destination & Premium is taken into account, remain on track• Overall, Marston's reports 'we continued to make progress in the period with growth in both sales and underlying earnings, helped by the acquisition of the Charles Wells Brewing Business in May 2017 and the contribution from the 19 new-build pubs in financial year 2017.'• The group says 'snow and icy weather towards the end of the period, both in early December and between Christmas and New Year, caused some unavoidable disruption to the business.'Trading – Destination & Premium:• Marston's Premium & Destination LfL sales are up 1.1% – excluding the impact of two weeks' snow• Total sales are +4.9% 'reflecting the contribution from the estate expansion in 2017.'• Headline LfL numbers are down by 0.9%. The snow cost some 2ppts. Marston's numbers are ahead of the market• This amounts to around £2m in sales or £1m in profits• Margin is in line with expectations. Marston's had earlier said that margins will be slightly lower this year on the back of increased costs• Heavy discounting continues in the market as a whole and, though Marston's is not taking part, price rises may not be advisable in the immediate termTrading – Taverns:• Taverns' LfL sales are +2.6%• Wet-led sales held up well, even during the snow. Fewer customers rely on cars & trade is a little less weather-dependent• Marston's says sales are 'benefiting from the performance of franchise-style agreements and an improved drinks range.'Trading – Leased Pubs:• Leased income is up 2% on a LfL basis. The estate has 'performed well'Trading – Beer Company:• Marston's beer company has increased own-brewed beer volumes by 33%, largely on the back of the Charles Wells' acquisition• Although no LfL numbers are given (and it may not be possible to disaggregate the purchase at this stage) underlying trade is believed to be strong• Synergies are progressing as planned• Marston's reports 'in addition to the acquisition of Charles Wells Brewing Business we are benefiting from distribution gains achieved in 2017 and a stronger brand portfolio well represented in the premium ale, craft beer and 'world beer' segments of the market.'Balance Sheet, Cash Flow & Debt:• Marston's does not update on balance sheet movements at its quarterly statements but the group has opened 3 destination pubs and two lodges in the year to date• In the year as a whole, Marston's will open 15 pubs and 6 lodges. The lodges opened to date include a 104-bedroom unit in EbbsfleetConclusion & Outlook:• Despite some of the problems that have been highlighted recently by mid-cap retail stocks in general, Marston's is trading ahead of the market• The group remains in sales & earnings growth• Marston's CEO Ralph Findlay comments 'we are pleased with our progress, which included record total retail sales in our pubs of £4 million on Christmas Day – 5.4% higher than last year.'• Mr Findlay says 'we continue to achieve growth against tough market conditions and are benefiting from investment in both pubs and brewing. We look forward to continuing to provide our customers with a great pub experience and excellent service, as well as delivering value for shareholders, over the year ahead.'Langton Comment:• Marston's has acknowledged the impact of the snow on its Destination & Premium business. It has nonetheless outperformed the market and wet-led sales have been more robust. Beer sales are strong and synergy benefits continue to be mined from the Charles Wells acquisition.• The consumer is under pressure but Marston's shares trade at little under 8x earnings and they yield around 6.7%.• The group has an attractive, well-managed and well-maintained estate of largely freehold properties. Food and lodging are growth businesses and Marston's shares are not trading on a demanding rating. The company, overall, is selling product that the consumer would like to buy at a price they are prepared to pay.

[the deacon] 15/2/2018 12:12

Added yesterday. Re-read through the recent coverage from Langton Capital and decided this is a great opportunity to pick up some cheap stock

[spacecake] 10/2/2018 10:05

Is this the start of recession watch ?

[eeza] 09/2/2018 21:09

Pretty good yield then !!

[chinese investor] 09/2/2018 14:29

I bought at 1.26p and 1.046p.
Very happy !

[chinese investor] 09/2/2018 14:28

In these troubled times buy breweries !

[lord gnome] 07/2/2018 15:23

Jumped ship today. Can’t see the share price recovering soon so I’m putting my cash elsewhere. Taken the hit.

[jeffian] 06/2/2018 23:32

CI,

7% div annually maybe, but 20% down in last year and 30% down over 2 years. How much better off do you feel?

[chinese investor] 06/2/2018 12:19

7% Annually !

Final 4.80p 29 Jan 2018
Interim 2.70p 05 Jul 2017

[chinese investor] 06/2/2018 08:42

Not caught up in the mayhem !
Up from here !

[mr_spock] 02/2/2018 12:29

Jeff H...thanks for the link.
Think I remember reading a senior management comment that the purchase of CWBB would save £6m as MARS would not have to build a canning line. Hmmm. Seems the CWBB canning line is not of the required standard. Disappointing that they only find that out now.
I'm researching MARS as a potential new investment and noticed comments on the BB about MARS and its uninspiring management. Comments about management are difficult for a newcomer like me to assess, but this is a pretty obvious booboo isn't it?

But there's a lot to like. The business is diversified, and gaining market share has got to be good for something. And the distribution deals will allow MARS brands to be listed in more pubs. More positives than negatives I think.

(Found the management comments: see posts 2000 and 2001)

[scobak] 01/2/2018 20:41

Thank you Illisw - sold, but waiting on sidelines. Fortunately I live somewhat further West than Bridlington so unlikely to be returning for some time. I suppose it does serve me right for keeping my eyes open for my investments.

[jeffian] 29/1/2018 00:12

Errr....you missed this bit!

"Either side of the two Christmas weeks sales were slower, reflecting the tough underlying trading environment and additional snow impact.

Pub Company LFL sales for the first 37 weeks of the year were -1.4%."

[ianian4] 26/1/2018 18:32

And it was

[septimus quaid] 26/1/2018 17:03

Pump up the volume
Pump up the volume
Pump up the volume
Dance! dance!

Sorry, every time I see the TIDM, I’m left with that wretched tune in my head!

[chinese investor] 26/1/2018 12:09

To Mars and Beyond !

[spacecake] 25/1/2018 07:25

GNK

Trading statement for the 37 weeks to 14(th) January 2018

We traded well over the Christmas period with Pub Company LFL (like-for-like) sales growth of 1.6% for the two weeks covering Christmas and New Year's Eve, in line with the market and against a strong period last year.

[spacecake] 24/1/2018 11:12

LFL up 6% at wetherspoons

JD Wetherspoon’s performance contrasts to that of Marston’s , which on Tuesday said business in the Christmas period was marred by snowy and icy weather.

That's because Marston's continue to blame the weather to cover their own inabilities to run the business efficiently.

[ianood] 24/1/2018 10:00

Probably profit warning

[arf dysg] 24/1/2018 09:55

exel (2579) "I topped up this morning, following the PW that never was."

Excuse my ignorance: what's a PW?