Marston's Share Discussion Threads

[skinny] 17/7/2013 10:28

The Ashes Ale is pretty good - well worth a try!

[rmillaree] 17/7/2013 09:53

Hello Linhur

I couldn't disagree with you more with regard to the new pubs.

The new pubs are the future and the crown Jewels of the company asset wise - the cost of renting them back would far outweigh the interest payments they make on the debt and they would lose out in any future "inflationary increases in pub values". Long term no reason why these values won't go up in value roughly in line with inflation.Slow and steady is fine by me with regard to new pubs - it probably takes some time to acquire sites and planning anyway - so a cautious and steady approach will also probably make it easier to fine tune the costs and statagies - build too many in one go and they make have to resort to untested contractors.

[redartbmud] 17/7/2013 09:13

Linhur

Cutting it fine for the Severn Trent extravaganza. You need to leave now.

red

[linhur] 17/7/2013 08:39

Interesting that the valuation shows a 56% premium to new build cost for the new "FFFF" pubs. As the average cost of these pubs was £3m, this means the 120 new pubs are valued at an average of £4.5m. If Marstons believe this value then they should be selling some of them at that price to reduce the debt and provide funds for more new pubs!

On a different point, I notice they are going to start a new pub in Shrewsbury which is adjoining an abattoir on one side and a bus garage on the other side and near a railway line. I do hope they build more rooms rather than an outside garden and then sell it for the 56% premium!!

Linhur

[mozart999uk] 15/7/2013 15:33

Thanks all for replies. Should have looked in more detail! :-) Will digest...

[rmillaree] 15/7/2013 10:12

Hello mozart999uk

The loss is as per the the figures quoted by Leeson - however this doesn't tell the whole story - as any downgrades in values hit the p&l but upward revisions amounting to nearly £200 mill (329.9 million less 136.9 reversal) are excluded from the p&l - so practically speaking the net adjustment was only in the region of £20 million. As this was the main 5 yearly revaluation the fact that book values held up quite well compared to their 2007 figures was cause for some relief at the time.

"During the year the pub estate was valued independently, the last valuation having been undertaken in 2007. The overall value of the estate is broadly in line with the existing book value, including a significant increase in the value of our managed estate offset by a reduction in the carrying value of our tenanted and franchised estate. Within the overall uplift in the
managed estate, the average increase in value of new-build pub-restaurants was at a 56% premium to the build-cost. As stated in our year-end trading update, for accounting purposes revaluation surpluses are required to be recognised in the revaluation reserve whilst a pre-tax exceptional charge of £215 million has been taken through the income statement."

[fangorn2] 15/7/2013 08:35

This reflects the impairment of freehold and leasehold properties of GBP215.1 million,

Eh - they own/lease their pubs surely given they're a brewery/pub business. So any movement in the value of such needs to be accounted for? Nought to do with being a hedge fund! :)

[redartbmud] 15/7/2013 08:31

I thought that the company was a brewery/pubs business, not a hedge fund!

[leeson31] 15/7/2013 08:27

from the 29th oct rns lasty year

Exceptional items

There are net exceptional charges of GBP180.2 million after tax. This reflects the impairment of freehold and leasehold properties of GBP215.1 million, together with a GBP2.8 million write-off of unamortised finance costs relating to the Group's previous bank facility, a net GBP4.6 million charge relating to the Group's new swap arrangements and a GBP3.7 million charge which recognises interest charges arising from outstanding tax liabilities relating to unresolved tax issues. This has been offset by a GBP2.9 million net gain in respect of the mark-to-market movement in the fair value of certain interest rate swaps. There is an exceptional tax credit of GBP43.1 million of which GBP41.0 million relates to the items described above and GBP2.1 million relates to deferred tax in respect of the change in the rate of corporation tax.


any use??

[mozart999uk] 15/7/2013 08:24

Anyone tell me what the exceptional items were that caused the loss this year?

[skinny] 08/7/2013 10:58

JP Morgan Cazenove Overweight 149.20 146.20 170.00 170.00 Retains

[redartbmud] 30/5/2013 21:26

It could be down to the wrong type of snow, or leaves on the railway line. Definatley not the business plan.

[hyden] 30/5/2013 08:46

I'd put money on the unseasonably cold weather and the fears that it may put people off. But more and more of Marston's pubs are destination pubs which should less affected so hopefully these fears are unfounded, as they were when we had the dip in April.

[stevenlondon3] 30/5/2013 08:17

The poor CBI retail sales figures maybe to blame.

[gbb483] 30/5/2013 07:12

Yes, I've also seen it over the last few trading days. My comment still stands.

[jeffian] 29/5/2013 22:39

Errrm......did you spot this?


Market Indicators
FTSE-100 -134.84 6627.17 FTSE-250 Index -232.00 14390.00 FTSE All Share -67.92 3494.74

[gbb483] 29/5/2013 21:27

So why the huge drop today? Well in excess of the dividend of 2.3p

[leeson31] 18/5/2013 22:30

Indeed, i was one penny further drop away from selling, but only after ~161p for a short term profit. :)

[gbb483] 18/5/2013 21:52

Well it looks like Thursday was a bit of tree shaking in preperation for Friday!

[skinny] 17/5/2013 14:42

JP Morgan Cazenove Overweight 152.60 150.00 170.00 Retains

[bit thick] 16/5/2013 15:19

"What's so solid about the following?

· Underlying operating profit - £66.6 million (2012: £67.6 million)."

Think you have answered your own question. Solid is a good word, not brilliant, not disappointing. Who would be disappointed with a 4.5% increase in divi? Me, I will buy more shares with mine.

[skinny] 16/5/2013 11:00

Shore Capital Buy 148.70 - - Reiterates

Numis Add 148.70 165.00 165.00 Retains

Liberum Capital Hold 148.70 - - Reiterates

[billy_liar] 16/5/2013 08:39

Billy_Liar Sell 151.45 152.40 100.00 100.00 Initiates coverage

:-D

[skinny] 16/5/2013 08:37

N+1 Singer Buy 151.45 152.40 161.00 161.00 Reiterates

[billy_liar] 16/5/2013 08:29

What's so solid about the following?

· Underlying operating profit - £66.6 million (2012: £67.6 million).

· Underlying PBT - £27.6 million (2012: £33.5 million), reflecting higher finance costs.

· Underlying earnings per share - 3.8 pence per share (2012: 4.7 pence per share).