The Lemon Fool

Interims; https://www.investegate.co.uk/marston-- ... 00080312Z/

TMF's Kevin Godbold penned this item;

It could be time for me to buy shares in this 7%+ dividend yielder

I wrote favourably about pub operator and brewer Marston’s (LSE: MARS) at the time of its full-year results back in November 2018. Indeed, the firm had been trading well and looked attractive to me on the grounds of a low valuation and a high dividend yield.

https://www.fool.co.uk/investing/2019/0 ... d-yielder/

Trading Statement.

Trading

We have achieved sales growth in both our pub and beer businesses in the 42 week period to date, despite weaker sales in the last 16 weeks reflecting strong trading in the same period last year, which included the World Cup and an unusually hot summer.

https://www.investegate.co.uk/marston-- ... 00044802G/

idpickering wrote:Trading Statement.

Trading

We have achieved sales growth in both our pub and beer businesses in the 42 week period to date, despite weaker sales in the last 16 weeks reflecting strong trading in the same period last year, which included the World Cup and an unusually hot summer.

https://www.investegate.co.uk/marston-- ... 00044802G/

idpickering, although marked down 8/9% at the mo that quote above is not to be dismissed is my initial view, interesting to see where the SP finishes today.

Stan wrote:idpickering, although marked down 8/9% at the mo that quote above is not to be dismissed is my initial view, interesting to see where the SP finishes today.

Thanks Stan. I get where you’re coming from.

Ian.

This TMF contributor talks favourably of Marston's.

Forget the Cash ISA! I think this FTSE 250 stock yielding 6.2% is all you need

At the time of writing, the best interest rate available on a Cash ISA is just 1.5%. This dismal rate of interest doesn’t even match the current rate of inflation, meaning the purchasing power of any money deposited will decline steadily over time.

With this being the case, I’m on the hunt for income stocks that might offer a better place to invest your money in the current interest rate environment. One of the companies I believe could be an attractive addition to your portfolio is pub group Marston’s (LSE: MARS).

https://www.fool.co.uk/investing/2019/0 ... -you-need/

Went out to eat last night were we are staying in Surrey and was amazed how busy the pubs in the villages were on a Tuesday evening, two we could not park near and the third we just managed to find a space in the car park but had to wait for a table

The food was excellent as was the ale however did not think it cheap at £150 for four but the place was packed including the gardens and seemed to be run with the minimum number of staff who were all foreign but coped very well under pressure with no visable sign of the landlord/lady

Watching the price of Marston today and intend to top up when the price stops falling

I think the key point in MARS is that with the new chairman they are finally cutting their debt mountain, this update ALSO pointed out that they were deferring new builds to the tune of £70mill, which I read as more positive than their like for like up slightly despite bad weather.
If folk aren't drinking beer in this period not yet reported on then I'll eat my hat !
The CEO has always been keen on new builds, even though the market were crying out for less debt.

MARS are down 5.6% as I type. I've had a look around and can't see why? Could just be noise I know, but any opinions out there on this? I hold in my HYP, and am not selling.

Ian.

idpickering wrote:MARS are down 5.6% as I type. I've had a look around and can't see why? Could just be noise I know, but any opinions out there on this? I hold in my HYP, and am not selling.

Ian.

It could be that you are looking in the wrong places and expecting logic rather than sentiment to drive the price.
Phil Oakley at the Investors Chronical is doing a series about how to read company reports. It comes out every Friday.
Last fridays was on the balance sheet.

He has decided that rather than compare companies he is going to pick a single company to explain what you should look at. The company that he picked is Marstons.

I hold the shares though am not entirly happy with my investment. That said I'm not intending selling at the moment.

Nothing in the accounts is surprising so far.
However the sell off may simply be caused by a reaction to publicly going through the accounts with a fine toothed comb.

Negative piece in Sunday Times yesterday, the gist of which is 'sound dividend stock but avoid anyway due to debt pile'. There's a summary on the HL website.

Dove

idpickering wrote:MARS are down 5.6% as I type. I've had a look around and can't see why? Could just be noise I know, but any opinions out there on this?

You should take into account the large rise in share price which has occurred after the takeover offer for Greene King (GNK) was announced on 19 August. Even with the fall today, the price is well ahead of where it was but maybe the hope/expectation of a takeover offer for Marston's is now dissipating somewhat?


Ian

Thank you all for your input, and taking the time to post. All your points are valid, but I'm going to just continue to hold my MARS shares, but am not looking at buying more currently.

Cheers,

Ian.

Year End Trading Update

Marston's PLC ("the Group") issues the following Trading Update for the year ended 28 September 2019. The preliminary results will be announced on 27 November 2019.

Group turnover was up 3% to £1.2bn. We anticipate reporting EBITDA broadly flat year on year and underlying profit before tax of around £101 million with higher operating profits in our Taverns and Beer businesses offset by lower earnings in Destination and Premium.

Total pub sales increased 3%, including like-for-like sales growth of 0.8% and the contribution from our pub expansion programme. In the most recent 10 weeks, like-for-like sales were up 1.9%.

https://www.investegate.co.uk/marston-- ... 00038401P/

I hold, and these don't look to bad. Not enough to cause the sp to fall 7% as of now IMHO.

Ian.

idpickering wrote:Year End Trading Update

Marston's PLC ("the Group") issues the following Trading Update for the year ended 28 September 2019. The preliminary results will be announced on 27 November 2019.

Group turnover was up 3% to £1.2bn. We anticipate reporting EBITDA broadly flat year on year and underlying profit before tax of around £101 million with higher operating profits in our Taverns and Beer businesses offset by lower earnings in Destination and Premium.

Total pub sales increased 3%, including like-for-like sales growth of 0.8% and the contribution from our pub expansion programme. In the most recent 10 weeks, like-for-like sales were up 1.9%.

https://www.investegate.co.uk/marston-- ... 00038401P/

I hold, and these don't look to bad. Not enough to cause the sp to fall 7% as of now IMHO.

Well, the recent increase in price, some of which no doubt a direct result of the Greene King Plc (GNK) takeover creating hopes of a similar outcome for MARS, was perhaps overdone?


Ian

Maybe so Ian. Either way, I’m not going to stress about it, and shall continue to hold.

Ian.

I'd could see MARS fill the whole left by Greene King but they're a bit wee for my usual HYP criteria. Good yield though, above GNK even before the takeover pushed it down.

From A J Bell Youinvest lunch time market news email ..."Pub company Marston's dropped 6.15% to 114.5p as it warned of a fall in annual underlying profit and a flat result for the current financial year owing to increased spending on its properties"

One positive I did see from the update was the allocation of funds for a training programme for staff, certainly long overdue, IMHO. I sometimes use the Pitcher & Piano in Cornhill, supposedly a premium bar, lovely premises, clueless staff & meals that taste (what little taste there is!) microwaved.
Certainly do not visit for choice, convenience only. Maybe the new Chair is having some effect, debt reduction targets in last statement & staff training in this one, what next I wonder ?

"Marston's PLC ("Marston's" or "the Group") is pleased to announce it has reached agreement for the disposal of 137 pubs for £44.9 million to Admiral Taverns. This disposal is in line with Marston's plans to reduce its debt in part through the disposal of certain non-core assets"

https://www.londonstockexchange.com/exc ... 92071.html