Marston's Share Discussion Threads

[cheshire man] 24/7/2019 11:44

Equity Development

@equity_research
·
3h


#MARS Q3 update from
@MarstonsPLC
looks ok: LFL pub sales on year so far +0.5%, so recent quarter will have seen falls (comps and weather) but margins ok. Beer vols also down in Q3.
FY ests. may edge down, but we still like the MARS asset and dividend backing + m&a in sector.

[blobby] 24/7/2019 11:13

In the mean time they are returning plenty of cash to investors as well and fixing the debt. I can't think of a sector that is not difficult in one way or another and very few that have been going for centuries.

[edit] Actually there probably are a few sectors that have been going for centuries... banks, insurance, mining spring to mind but probably not telecoms, utilities, advertising, media etc

[chinese investor] 24/7/2019 11:05

Annual Cost Of Dividends £47.5 million.
Annual Interest Paid £74.9 million.

[quepassa] 24/7/2019 11:05

There's a lot more pain to come at Marston's.

They are beginning to bite the bitter pill to make themselves better but management knows that they still need an enormous amount of further corporate rehabilitation before they are fighting fit again. Debt remains a crippling burden.

Expect further corporate tightening of the belt and corporate streamlining before things really improve.

And do not forget just what a difficult sector this is.

ALL IMO. DYOR.
QP

[redartbmud] 24/7/2019 10:53

Much of the debt has a fixed coupon, so a fall in interest rates makes no difference.
Same applies to a rise though.

[jeffian] 24/7/2019 10:24

Aye, and I posted it on 25 June!

I'm not in the least surprised by the reaction. The trading update confirms that they plod along as a low/no-growth company without any sense of urgency.

[whackford] 24/7/2019 10:12

Jeff - that article is dated 25 June.

Questor may give an update later. I'm surprised at the sharp reaction down today.

[sentimentrules] 24/7/2019 10:03

Just got the alert for volume to price now (means enough volume to believe in what the day brings)

So 117.5p order opens today, or got a feeling the shorters will be snarling for 50p.

[quepassa] 24/7/2019 09:52

There's a lot more pain to come at Marston's.

They are beginning to bite the bitter pill to make themselves better but management knows that they still need an enormous amount of further corporate rehabilitation before they are fighting fit again. Debt remains a crippling burden.

Expect further corporate tightening of the belt and corporate streamlining before things really improve.

And do not forget just what a difficult sector this is.

ALL IMO. DYOR.
QP

[fenners66] 24/7/2019 09:50

Chinese - we have seen lots of similar board statements..

say from minnow companies that believe no one will notice if they change their mind .....
..... like Vodaphone...

If one of the largest dividend payers on the market can change their mind in the light of self made circumstances so can MARS.

[sentimentrules] 24/7/2019 09:49

Sure. Sometimes shaking down happens instead. Find out by day end

[diku] 24/7/2019 09:49

Rush of blood at 117.5p...

[jeffian] 24/7/2019 09:48

The title of this thread is still appropriate!

[sentimentrules] 24/7/2019 09:46

I've placed a buy order 117.5p in case today was an overreaction. But needs to open today. Got too greedy and held a steep rise into data.

The good point here is volume is still not high today. So if it gets back to 117p (at that stage good volume) it's a good hold again to next data. Otherwise ... 103 coming pretty soon - showing longer term negativity outlook .

[chinese investor] 24/7/2019 09:44

January 2019

"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."

[fenners66] 24/7/2019 09:41

Debt in general may be cheaper - but stretched corporate debt does not have to follow the trend - it will be the perceived risk that determines future rates.

One also has to question the likelihood of a dividend cut.
If the board has finally woken up to the size of their debt and are cutting capex plans - when do they decide that a dividend cut makes sense too ?

[luderitz] 24/7/2019 09:32

"Still got to pay the interest though!!" This is true redart but with low interest rates and talk of a further rate cut debt will be even cheaper, so let's wait and see.

[redartbmud] 24/7/2019 09:12

fenners

Debt has been unchanged around £1.4bn for the last 5 years or so.
They have been in denial about reducing it, as some is financed up to the 2030's and is securitised against the properties.
Still got to pay the interest though!!

[bigboots] 24/7/2019 09:06

Awful figures just doesn’t justify the price rise
A mess of a company

[chinese investor] 24/7/2019 08:44

The next 2 hours will be important.
Will the trend be up or down ?

[fenners66] 24/7/2019 08:35

Well , my last comment on here 7th Jun was about a positive article someone posted... that did not mention the Debt.

Today the focus appears to be all about the debt..

[redartbmud] 24/7/2019 08:25

Ralph Findlay happily sits in the corner of a pub, sipping a pint, and the business slowly meanders on.
Hey ho.....

[davr0s] 24/7/2019 08:22

Back to where it traded a whole week ago - no drama