Mitchells & Butlers Share Discussion Threads

[hibberts] 25/1/2021 12:51

Strange share action. Is the placing at 280p?

[phillis] 20/1/2021 11:00

price strengthening so refinancing news shortly to follow

[catsick] 20/1/2021 09:36

Yup they also don't need much cash and a quick placing of 5-10pct of the company will be more than adequate

[mhw28865] 20/1/2021 08:53

Wetherspoons raised 93 million this morning at only a 5% discount and price rises well above placing price. I can see that happening here MAB will be back making lots of cash in a couple of months and the share price will be back over £4 imho

[mhw28865] 19/1/2021 08:58

going by the share price i would say funding is pretty much guaranteed and news due any day.

[phillis] 08/1/2021 10:45

well i am out here until the dust settles I know the FD here and he is extremely competent The major shareholders are supportive It is just a matter of terms

[grabster] 08/1/2021 09:23

A roundup of the various media headlines regarding yesterday's MAB update: (See hTTps://tinyurl.com/y69xhv8t for each full report) BBC News Harvester owner says it needs more cash to survive lockdown Pub group Mitchells & Butlers says current restrictions are costing it up to £40m a month. 23 hours ago The Guardian O'Neill's and Harvester owner considers emergency cash call UK pub and restaurant group Mitchells & Butlers says it faces 'extremely uncertain' future. 18 hours ago Sky News COVID-19: All Bar One owner to raise cash as lockdowns cripple hospitality M&B shares tumble as the firm reveals the extent of the sales slump it is facing through renewed coronavirus restrictions. 23 hours ago Telegraph.co.uk Mitchells & Butlers seeks emergency cash raise to survive third lockdown Mitchells & Butlers is seeking an emergency cash raise to survive the third national lockdown after sales plummeted by more than two-thirds... 1 day ago Financial Times Mitchells & Butlers looks at raising equity Mitchells & Butlers, the UK's largest listed pub group, is considering raising equity after the country's third lockdown delivered another blow to... 1 day ago The Times Mitchells & Butlers to tap investors for support The owner of All Bar One and Harvester may become the first business to tap shareholders for new funds after being hit hard by a third national... 9 hours ago The Irish Times Irish-backed Mitchells & Butlers to consider equity raise over Covid Irish-backed UK pub giant Mitchells & Butlers said on Thursday it was considering an equity raise after England was plunged into a third... 22 hours ago Proactive Investors UK Mitchells & Butlers reports sharp slowdown in sales as lockdown hits festive trading For the 14 weeks to January 2, the publican said total sales were down just over 67% as progressively tighter restrictions imposed in the UK... 21 hours ago Proactive Investors UK Lockdown pubs in focus as Mitchells & Butlers updates on Thursday Mitchells & Butlers PLC (LON:MAB) is on the slate for Thursday though amidst the move back into national lockdown timing leaves a lot to be... 1 day ago BigHospitality.co.uk Mitchells & Butlers explores equity capital raise to ease cash ... Mitchells & Butlers explores equity capital raise to ease cash burn as third lockdown bites. By James McAllister. 07-Jan-2021 - Last updated on ... 17 hours ago

[essentialinvestor] 07/1/2021 12:46

IF they seek to raise arond £500 and that is an IF, you are looking at some savage equity dilution.

[jeffian] 07/1/2021 11:58

They won't be the only pubco looking to repair the balance sheet via an issue of equity but to my mind there's a serious problem about investing more capital to try to solve a revenue problem, particularly as there's currently no end in sight. It would be like trying to fill a bath without a plug.

[dagsteeth] 07/1/2021 09:44

I have a thought that given Lewis and Magnier own 55% and only Standard Life is on the register, they are very happy to have a RI at any price underwritten by Lewis and Magnier to efectively take over the company at a discount. Given they need an AGM before they can launch an dthey are insolvent in 10 weeks and don't even seem to have started their process, unless they have a cunning plan they are cutting it very fine. I agree with others. No idea why this is still trading above 200p

[ianian4] 07/1/2021 09:40

Does trimming costs include furloughing the Directors, or are they still on full pay?

[csmwssk12hu] 07/1/2021 09:35

I think it’s amazing the share price has held up this well, take the chance while you can would be my thoughts

[catsick] 07/1/2021 09:04

I don't think a cap raise will be a disaster, it won't be a hige dilution like IAG RR or HMSN probably a 1 for 4 at around 200 will give them 250m gbp which is more than enough to fund for the next 12 months including current cash , once full able to open will return to printing cash .....

[irenekent] 07/1/2021 08:47

Most of their premises are owned on a freehold basis. Many have large car parks and most are in fantastic locations. Despite all this and great food they have not paid a dividend for years. In place of that they give a book of 12 vouchers every year that give discount of 20% off your bill. On an average bill of £60 that's £12 saved. This encourages shareholders to be customers too. You only have to own 1 share to get the annual booklet. Trouble is that the share price has gone nowhere for years. When they can open again a rocket needs to be placed under management to start expanding their offer with investment in accommodation in suitable places. Also shareholders need a better return linked to the size of their holding. To give an annual discount of 20% for the price of one share is ridiculous.

[schroedar] 07/1/2021 08:47

Struggling to understand why the equity value is as high as it is given they are insolvent in 2 months. Surely any equity raise will have to be at a massive discount, like sub 100p. The only value in today’s equity is goodwill. At a steady state 400m ebitda, ev should be around 3bn. That’s 2022 value at best. Net debt was around 2bn. Add in more cash burn and probably closer to 2.2 so leaving equity value excluding solvency risk at 800m, which is below today’s market cap. Add in solvency risk and the fact that new equity is invested in cash burn and I am really surprised that mab isn’t trading today at around 160p with the rights prices around or below 100

[topazfrenzy] 07/1/2021 08:14

I will start building a position here again having sold at 250 GLA

[dicktrade] 07/1/2021 07:57

TBH in this market with a new lockdown with no end date to keep holding here with a TU due was a brave move.

[csmwssk12hu] 07/1/2021 07:39

I’m glad your out but I wouldn’t call it happy days, other poor sods are still in and most will be pi’s like us, I wouldn’t touch these now until rights issue details are announced, it’s going to need £500m or more to be going concern and that may be a bridge to far

[dicksmoney] 07/1/2021 07:31

Happy days I sold out at 235 on Monday.Will look to buy back in as MAB will do v well when things normalise as there will be less competition and loads of people wanting to eat out. GLA

[essentialinvestor] 07/1/2021 07:20

csm, with respect and given their debt, what did you expect as we enter a third lockdown?. They won't be the last to require a cash raise.

[csmwssk12hu] 07/1/2021 07:13

Well that is quite worrying, out of money to pay the bills within two to three months, wtf are they thinking saying they need an equity raise, your suppose to announce the terms at the same time, these are going to get shafted today after that as no-one will want to hold wondering what the rights issue price and terms could be, I have been annoyed at these, they were well run when everything was rosy, but it’s like they have froze in the headlights, they have some amazing size plots they could have sold to bring money in, they do amazing food and could have offered takeaway like other pubs near me have done and are doing very well at, let’s face it the food is much better than many takeaways and at least they could have been bringing something in

[grabster] 06/1/2021 08:47

Trading update tomorrow morning. Obviously refers to the period prior to this week's total lockdown (up till Xmas) - but will carry some comment on the situation now? (Or play safe by avoid doing so?)