Marston's Share Discussion Threads

[janekane] 11/9/2018 07:05

Essential investor just one of many concerns the City has
Perhaps you could explain the costs in these deals when we use our freehold property's against these so called interest only loans
Couple of posters here seem to think the money loaned is for free
I've asked them what happens to the money lent at the end of the term
The loan has to be paid back

[janekane] 10/9/2018 22:16

Not randem figures just examples of what the money men charge 3% plus part of the loan or 6% all in
You figure it out

[quady] 10/9/2018 21:57

rmillaree - indeed the securitized debt is very clear. What Janekane raises (which is a very valid point) the sale and leaseback arrangements which seem to be Marstons new financial engineering, dont appear on the balance sheet as debt. Because well, they arent. Yet they can be seen as 'hidden interest payments'. Thing is Janekane keeps randomly putting figures of of the air of what the lease is actually costing.

[rmillaree] 10/9/2018 20:15

The securitisation repayment profile is on page 30 of the recent interim results. This fairly simply lays out the plans for the repayment of the majority of the borrowings that the company has.Pretty much like a standard mortgage slow going to start with, with the debt dropping at a faster rate later on.

hxxp://www.marstons.co.uk/docs/financials/2018/Mars_Interim_Presentation_160518.pdf

[essentialinvestor] 10/9/2018 19:26

It's a heavyweight Chair appointment, that's for sure.
Read across from GNK's update as well, although the heatwave /World Cup
were clearly supportive.

In terms of the sale and leaseback, with the twist being they are returned
the freehold, what happens if a particular unit becomes unprofitable
for whatever reason, during the deal term?.

[ianood] 10/9/2018 19:20

Janekane - obviously I wasted my breath on your superior intellect by explaining the operation of what is effectively a pure interest rate swap structured deal in the past when you kept referring to the Marston transactions as sale and leaseback, which they aren't. I don't intend to challenge your "obvious" intelligence again so I'm taking the soft option and invoking the help of the filter button!

[the deacon] 10/9/2018 19:09

https://www.thetimes.co.uk/article/were-masters-of-our-craft-so-why-are-we-not-craft-brewers-ponders-marstons-gc9ndj995

[quady] 10/9/2018 19:06

Janekane - oh and in answer, paid back by profit over the next 30 years. £40k profit a year ain't so much.

[quady] 10/9/2018 19:04

Janekane - even though Ianood and I may be intellectually challenged we understand the leases are over 30+ years and the freehold overs make a profit. What we have both questioned is the (different) figures you've plucked out of the air. 6% on the leasehold hasn't come out of the accounts has it? If so we as brain deprived people would be keen to know which page you found that on.

[janekane] 10/9/2018 17:49

Hope so the city have been very sceptical of the debt in financing these new builds

[dudley nightshade] 10/9/2018 16:57

I went to see a newly completed Marstons hotel on the outskirts of Derby at the weekend,it is positioned on the ringroad adjacent to an existing pub.The reception area was unstaffed and access to it was by a speaker which was presumably connected to an office somewhere inside.I am not familiar with Premier Inns or Travelodges and so cannot compare them with this new hotel,but from my impression it seemed pretty basic.However the car park was pretty full so people must find this hotel caters for their needs.
I have a small holding in Marstons shares so I hope this new direction management are taking will be a winner and the share price will react accordingly

[janekane] 10/9/2018 16:53

Ianood and quady

you need to look at the accounts they lease for 30 years and pay interest only loan
The property reverts back to Mars after this period

Question for you

How have they paid back the £1 million borrowed

I suspect the answer will be a little difficult for some peaple of you intellect

[ianian4] 10/9/2018 13:38

Maybe, but they shorted before the 5% rise. Shows they are not all experts.

[knowing] 10/9/2018 12:35

Bit of short interest

[dinvester] 10/9/2018 09:35

New Chairman Mr Rucker the city wheeler dealer.
Huge personal fortune and equal huge debt amazingly well handled.

Not to say I would not like to be $1 behind him.

This guy certainly knows how to move money around.
Unfortunately for the staff, he is well known for being brutal when it comes to slashing wage bills.

Now this in NOT a criticism.
This is exactly what Marstons needs.

[ianood] 10/9/2018 07:39

AS I thought. We do get more than our fair share of garbage posted on this site by a host of know nothings!

[ny boy] 09/9/2018 22:51

Should get some follow through Monday/next week,as we close in towards the trading update

[quady] 09/9/2018 22:41

Ianood - made up, it was 2-3% the last time Janekane outlined the theory. I asked the very same thing.

[ianood] 09/9/2018 19:41

Where do you get 6% from?

[janekane] 09/9/2018 07:35

Build a pub for £1.5 million then mortgage it out interest only for 30 years
Interest rate 6%
Amount you borrow £1million repayment per month is £5000 =£60000 per year
Cost over 30 years is £1.8 million reverting back to MARS
Maintenance costs over this period 2% of turnover
This is why the city don't like these arrangements

[exel] 08/9/2018 18:56

The share price seems to like the new Chairman. And, by the way, the much berated 'sale and leaseback' sees freeholds REVERTING to MARS at the end of the lease, at no extra cost, in view of their stated PREFERENCE for FREEHOLD property (circa 95% f/hold) if I recall from the AR correctly. ex

[spacecake] 08/9/2018 09:32

Any pub property experts around,reading this story of the construction of a Marstons £2 million pub in east cleveland. a few miles south of the closed Redcar steel works.



But once again, are Marstons using the care home interior design concept for there new pubs. Have a flick through the pictures and see what £2m can buy.

[quady] 07/9/2018 22:17

QuePassa - we look forward to hearing you explanation of the recent share price weakness in the wake of yesterday's announcement.

[ny boy] 07/9/2018 19:42

Resistance targets leading up to and or on trading up date 10 Oct

102p
112p
120p

[ny boy] 07/9/2018 16:40

Added another 10,000 91p, makes sense if Greene King were good, it’s been a wonderful summer for drinking! Start with f an Indian Summer now will add extra to the nos.