Mitchells & Butlers Share Discussion Threads

[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?)

[ukneonboy] 24/12/2020 05:45

definite growth / recovery potential after Covid19 watch the youtube https://www.youtube.com/watch?v=ut6CpuRXlnA

[topazfrenzy] 18/12/2020 14:59

I would have thought this would be heading back to under £2 again, in early Jan if not before, if an extended lockdown or similar is announced for after Xmas

[netcurtains] 09/12/2020 10:05

I'll drink to that. Looks good at this exact second - no idea about the next second though.

[viking24] 03/12/2020 13:55

Snow tomorrow and week end.Will be nice to be sitting in a pub, with a glass or two and Week End papers and a "substantial" meal.Pubs will have a fantastic December in allowed areas.Good momentum sector

[netcurtains] 02/12/2020 10:24

Pubs opened today.....

[topazfrenzy] 02/12/2020 08:48

Vaccine being rolled out from next week Stocks like MAB are the place to be, stay out miss out

[netcurtains] 30/11/2020 16:58

What happened to the FTSE - is there a NO DEAL Brexit? Anyone know what happened?

[netcurtains] 30/11/2020 07:44

Government planning to give more support to hospitality sector.

[bookbroker] 30/11/2020 06:56

Do you mean a quid!

[topazfrenzy] 29/11/2020 22:57

£3 here by Xmas You have been warned!

[netcurtains] 27/11/2020 18:12

Ten Days to V day: Https://www.theguardian.com/world/2020/nov/27/hospitals-england-told-prepare-early-december-covid-vaccine-rollout-nhs

[topazfrenzy] 27/11/2020 11:08

Grabbed a few more :)

[weemonkey] 26/11/2020 14:28

As Warren Buffet says "You buy the great company with temporary problems"

[topazfrenzy] 26/11/2020 13:22

Time to add, 2021 is only round the corner, this will be 50% up from here by spring