Marston's Share Discussion Threads

[pubs advisory service] 30/1/2020 09:43

Redartbmud - thank you.

Q: What does a barrel of beer yield?

CEO: refuses to answer in his answer and cites confidentiality despite it being a duty paid product and the awards being public.


Comment:
For the CEO to not inform someone of the contents of the duty paid product his firm produces is....well.... the alarm bells should be clanging off the walls as that was the crux of the Anderson case, he has clearly not learned his lesson and repeats the failed defense of the firms lawyers. Tenants could use this comment as a breach of fair and lawful dealing under the Pubs Code and raise complaints today - the Regulator could go ahead and fine the firm 1% of its group turnover for failing to adhere to the awards and refusing to disclose contents when asked, this was all laid out in the awards. Doubling down just doubles the costs, you need to be having words with him and ensuring your investments are not being frittered away by continued refusal to act lawfully. The company needs to be speaking with us as this is not going away and they are seemingly making it worse.

Taken from the Act: 55 Forms of enforcement
(1) If, as a result of an investigation, the Adjudicator is satisfied that a pub-owning
business has failed to comply with the Pubs Code, or has failed to follow a
recommendation made under section 56, the Adjudicator may take one or
more of the following enforcement measures—
(a) make recommendations;
(b) require information to be published;
(c) impose financial penalties.

[redartbmud] 29/1/2020 22:05

It is a vice clamped around their sensitive parts, and it is squeezing them tight!!

HSBC today downgrades its investment rating on Marston's PLC (LON:MARS) to reduce (from hold) and cut its price target to 90p (from 100p).

HSBC today reaffirms its hold investment rating on Mitchells & Butlers PLC (LON:MAB) and cut its price target to 425p (from 435p)

[fenners66] 29/1/2020 21:38

I looked at these some time ago and was wary of the debt , but thought I had at least missed the boat for the capital gain <100 to 130.

However I was saying to myself that the debt could yet come home to roost.

Not only that , but if I had bought for the dividend I would probably hang on despite the share price fall.

So , now they are back to 104 I am feeling better as in did not chase them higher, and we know more about the current state of the business and its not encouraging.

Happy to watch and wait.

[redartbmud] 29/1/2020 17:34

Precisely. Quite clearly the new remuneration policy recognises that profits are falling and are unlikely to recover.
Based on the last financial year, none of the bonus targets were hit and they received nothing from the share incentive scheme.

Answer - lower the targets, so they get bonuses and shares.

Job done!!

Simples.....

[eeza] 29/1/2020 17:14

It is for them.

[jeffian] 29/1/2020 17:13

Incentivise them to do what? Flat/falling profits and dividends and share price in the doldrums. It doesn't seem to be working so far.

[redartbmud] 29/1/2020 16:40

The retiring NED, as Chair of the Remuneration Committee, gave us a lengthy presentation about the new LTP. for next year. The LTIP is set every 3 years.
We were told that it was structure to close the gap between the remuneration of the staff and the executives, by amanding certain aspects of the package.

At no time did she tell us that it was a more generous scheme than the one about to end.

Question:
Have you back-tested it against prior years and, if so, would it have trsulted in a greater remuneration payment?
Answer:
It is important that the hard work of executive directors is recognised, and indeed in the past they have voluntarily surrendered part of their awards, as the business has faced headwinds in recent times (Something like that).
The new remuneration package would have resulted in the directors receving greater remuneration in the years back-tested. It is important to incentivise executive directors appropiately.

[pubs advisory service] 29/1/2020 16:24

Thank you, the Anderson awards show everyone a failure of Marston's in house RICS qualified valuers to account for wastage and sediment in the assessment of rent, it is a massive problem and unpicking it will be very expensive. The board should really be fessing up to the problem not doubling down as that only serves to increase the final cost of redress and as they know full well from just trying to fight off a couple of PCA arbitration's its big money already. We see investors as victims too after all you have never been informed by the company about what their staff have been been doing when setting rents, you had to find out from other sources.

[redartbmud] 29/1/2020 15:56

PAS

Thanks for the comment.
I have filed my notes, takem at the AGM. When I get 5 minutes, I will look them out. I try to make a note of the questioner's name if I can. Despite requests, from the Chair, to state name when asking a question, not all comply.

[pubs advisory service] 29/1/2020 15:43

Thanks, it was a good question shows people are twigging this as a problem, i wonder if his answer convinced them?
As it stands well over a thousand pubs are let on separate leases or tenancies - one for each individual pub you rent, one Marston's tenant i spoke to had over 100 pubs all on different agreements and rents. I spoke with Mr Anderson he confirmed the costs situation so the CEO was not truthful re the nil cost of the cases, added to that Marston's own legal bill they had to fund all for arguing on a losing wicket.
You should note the PCA office is funded in part by Marstons and new levy funding policy which was published just yesterday means PubCo's will pay a greater share for every case filed - a sort of pro-rata fine if you like, i.e the more complaints the more you pay. The Anderson award shows every single Marstons tenant can now file a complaint with the PCA on same issue and win every single time.

[redartbmud] 29/1/2020 15:26

PAS

Sorry. Can't send a link. It was verbal, in answer to a direct question from the floor.
Hmmmm.... fail to understand how 1 pub (or 2?) has a unique contract.

[pubs advisory service] 29/1/2020 15:19

Thank you, can you send a link to his/this statement please - by the way Mr Anderson has 2 Marston's pubs so the CEO misled you on that point and as directed for pub companies losing statutory arbitration s Marstons will have to have paid Mr Anderson s costs so that is twice you were misled, i would be very worried.

[pubs advisory service] 29/1/2020 14:47

failure to account for actual contents in a 72 pint barrel would inflate assessed revenue by £10k in this average 200BB pub hxxps://www.72pints.co.uk/200-brewers-barrels-example

[redartbmud] 29/1/2020 14:32

Froth in the glass, A bit like the 72 pint barrel that is really 68 pints.

[essentialinvestor] 29/1/2020 14:26

Everything has a price I suppose, back on a watchlist but
really surprised it somehow reached near 1.30 pence a share.

[redartbmud] 29/1/2020 14:22

They will not be able to hold the pledge to freeze dividends, for the remaining 3 years, unless they sell more assets, but that may impact on the debt reduction plan that they agreed, at the insistence of major shareholders, as asset sales are being made to pay down debt.

[chinese investor] 29/1/2020 14:13

I'm Watching & Waiting !

[cc2014] 29/1/2020 14:11

If it gets to 90p I'll have pressed the buy button before then... Expect it's just broker downgrade to let their mates in.

[knowing] 29/1/2020 13:55

HSBC 29/01
Downgrades
Hold
Reduce
90.00p

[cc2014] 29/1/2020 13:50

Back to 105p at a speed that surprises me. I expect support will kick in somewhere, maybe around the psychological 100p. I'm not yet dithering over the buy button but the share price has fallen enough to make me take a closer look.

[skinny] 27/1/2020 14:09

.

Approve the Directors' Remuneration Policy 89,792,873 86.05%

[crossing_the_rubicon] 27/1/2020 11:55

Similar position Luderitz.
Watching and wondering.

[spacecake] 27/1/2020 07:17

Tales from the dark side... any reports, stories and revelations from the AGM knees up ?