Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Nice broker increase to 360 and still a buy, more headroom for the SP.
MAB are expecting a 3% (~£60m) cost headwind for the full year. The minimum wage increase only took effect in April so didn't really affect this morning's results. Obviously it will affect a full 12 months next year. A Labour government may well be keen to push further increases. Food for thought...
Last time I went to MAB I got the runs. Only time I went back after that was to sm4ck the waiter. I then sold up my shares. DYOR, just don't try the chicken. That research will have you on the bog for a week.
For a cheap pint and burger it is spoons. For a more comfy chair, clean table and floor it is MAB.
JDWeatherspoons a better buy or MAB? Which wud you prefer to visit?
IM OUT
If you are a shareholder you get the vouchers with give you 20% of your meal
Hi thinking of investing here, what’s the deal with vouchers? How do you receive and how much?
Also is this in lieu of dividends?
Thanks for any answers
Arrived today via HL. One is for 30% off the total bill :-) rest are 20%
MAB a bright light on a dark day
First quarter performance at top end of profit forecast. About as good as can be expected, but macro issues will dominate the ftse today.
Added to my holding here first thing this morning - looking at pre booked restaurant reservations I would say it is going to fly high in the New Year when the trading update comes out - there is plenty of money out there atm and it is being spent big time - I was in London yesterday with the Mrs and we generally always go to Nicholson's pubs as they are managed well and reasonable on price - went to 3 of them yesterday and couldn't get in!! - absolutely rammed - augurs well for the trading update -
gl dyor etc
Tried to book a table for my local Miller and Carter for the next two weekends fully booked this stock a long term hold for me and hoping for some good results for next year
S***-dip I don’t give advice on investing
It's a good job the RCF isn't drawn as they are already in breach of the covenant. 3.2x Net Debt (ex. leasees)/EBITDA against a covenant of 3.0x
Never take investment advice from someone who can’t spell investor, or anyone who invests for a few quid off a meal.
It's odd that these never include "Stop moaning about having to pay people a decent wage"
I agree, percentage wise for the outlay, it by far gives the best return for me, with the vouchers
This gives a great dividend as a share holder you get vouchers which gets you 20% off your bill great company long term invester
Shore Capital: Mitchells & Butlers is ‘inexpensive’
Shares in pub group Mitchells & Butlers (MAB) are inexpensive despite a strong balance sheet and building momentum, says Shore Capital.
Analyst Greg Johnson retained his ‘hold’ recommendation on the Citywire Elite Companies + rated stock, which was trading at 223p on Thursday.
A fourth-quarter update from the group showed ‘momentum during the year’ had pushed into the final three months of the financial year, with like-for-like sales in the 52 weeks to 23 September up 9.1%. Full-year results are expected to be near the top end of expectations.
‘The group continues to trade well, the balance sheet has significant property backing and the shares are inexpensive,’ said Johnson. ‘We have a “hold” stance, noting the limited cashflow relative to its bond amortisation schedule, with better value in the likes of Marston’s (MARS) and Restaurant Group (RTN).’
Mitchells & Butlers PLC (LSE:MAB), the hospitality operator, is an “attractive” industry player, reckons Liberum which was impressed by its sales growth in the first three quarters of its 2023 financial year.
Falling costs and rising sales were enough to send the share price more than 8% higher on Thursday, with revenues in the year-to-date 10% greater than pre-pandemic levels.
Strong third quarter like-for-like sales growth of 9.7% impressed Liberum because it's “the first ‘clean’ comparative period, unaffected by Covid or VAT” and signalled a performance ahead of the wider market.
Liberum’s guidance for underlying profits in 2023 and 2024 increased by 5% and 8% respectively, meaning a 6.8% growth in the next quarter is required to achieve this year's predictions.
A £50mln increase to the Harvester owner’s rolling credit facility, which is now at £200mln until July 2026, and the completion of a pension buy-in has “further reduced uncertainty,” according to the UK bank.
“The shares are attractive, trading on 2023 EV/EBITDA of 8.3x, falling to 7.0x in 2024. This is towards the lower end of the pub sector, which trades on an average of 9.0x and 8.0x,” the broker said.
Based on these factors, Liberum lifted the London-listed firm's share price target from 250p to 310p, representing around a 35% upside to the current stock’s value.
Shares in the group opened at around 230p on Friday but slipped a little over 2% before lunch.
HSBC raises MAB to buy with a price target of 300p.
Going Concern
After considering forecasts, sensitivities and mitigating actions available to management and having regard to risks and uncertainties, the Directors have a reasonable expectation that the Group has adequate resources to continue to operate within its borrowing facilities and covenants for a period of at least 12 months from the date of signing the financial statements. However, particularly given the requirement to refinance existing unsecured facilities which expire in February 2024, but also due to the prevailing uncertainty concerning sales and cost inflation, the Directors have concluded that a material uncertainty exists which may cast significant doubt over the Group's ability to trade as a going concern, in which case it may be unable to realise its assets and discharge its liabilities in the normal course of business.
Accordingly, the financial statements continue to be prepared on the going concern basis but with material uncertainty on the Group's compliance with financial covenants and its liquidity. Full details are included in Note 1.
PS: have you even read the going concern statement?
Yes, I fully expect my my comments on the LSE board to do irreparable damage to a FTSE250 constituent.
'I find all my best investments come from supportive echo chambers', said nobody, ever.