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To me the Sales figs are the key. Sales will be overtaking any loans. Most Comps in the Uk have them by the way, the advantage now is the support we are getting on Draft beer sales (See last budget). Hence the cheaper price in Supermarkets, etc, plus new investment in plant/machinery, etc fully tax deductible, not sure if all of their Elec. Lorrys are paid for yet? We hear sales are now above pre-pandemic levels (I am not surprised by this). Most would rather be in a Marston's pub than queuing for days at Dover for what? A holiday abroad? Erh? Most are enjoying life post lock down in the Uk to be honest with better Beer, and a good Marston's pub for a good carvery (fair value too) for the family. This pub chain is strengthening in my opinion and next sales figs/updates will be very interesting (surely due out soon for the 1st qtr of the yr?). Then we should soon get warmer weather to help further. All recent Comp. releases not as the doomsters would have liked either. DYOR - worth a read of the past reports Company moving in the right direction, and I have been topping up and will hold my shares for a few years to make the most of the rising value.
Oh Dear SC, you cannot see the wood for the trees or are so under water in danger of .......
"Sales overtaking Loans", really, Sales are ok providing profit margins are good. Loans do'nt just disappear they are an obligation which Company's must meet otherwise Funders(Banks) will fore-close. The mood music here should alert any astute investor.
The prices in Supermarkets is just a reflection of Tesco's and co preserving market share by exerting pressure on Beverage producers. The margin on bottled/canned beers in supermarkets is miniscule after raw material costs, production, transportation, packaging and excise duty, the profit, if at all, is pence..
Look at the fundamentals. If sales have been so resilient why have loans payments been missed and now further reviews of loan conditions? Conditions yet to be fully publicised.
Keep topping up and hoping, but just remember the SP has been on a constant downward trend since March 2021 when at 130p.
The portents are not good.
You can't argue with the delusional...........your only weapons are facts, reason and logic!
'Keep topping up and hoping, but just remember the SP has been on a constant downward trend since March 2021 when at 130p'
With respect the share price wasnt £1.30 March 21, maybe 2020 and the reason for the decline in SP is due to fact pubs were shut , closely followed by russia / Ukraine war, increased overheads and looming fear of a recession.
Sales are up, non performing pubs are being sold, strategy ito reduce and assuming WW3 doesnt kick off I see Mars as a good recovery play.
Meant to say -
Sales are up, non performing pubs are being sold, strategy to reduce debt and assuming WW3 doesnt kick off I see Mars as a good recovery play.
In March 20 the SP fell off a cliff to low 20's as did all stocks when the Covid Lockdown had impact. The SP gradually recovered to stand at a high in March 21. The began a slow consistent decline to where it is now. The factors you mention have had an effect as for most stocks. The remaining issue for MARS, is and will remain for a good time, Debt.
Sales are up when compared against lockdown and not forgetting the inclusion of sales from the Brain's estate which only had it first years inclusion in the accounts to 30th September last. So Brain's figures have inflated overall sales .
Sales must be judged against the net profit they produce.
Selling anything under duress is never good, but lets take your view. justaquickone, the pubs are not performing. OK, that being the case in the current climate, who will wish to buy at the values suggested?
Not sure all the 61 pubs are not performing, for instance the Mitre Oak at Stourport, is in good location have a reputation, well patronised and so on.
When your back is against the wall you liquidate assets that should readily sell, profitability and location can only help the sale.
Any bottom fishers have the opportunity now, to take a gamble, but always remember never invest more than you are prepared to lose.
AIMO
All pubs were reviewed based on their performance over the past 5 years and worse performing pubs put up for sale.
I know for a fact some of the pubs up for sale were or had started to turn things around I.e. new management etc but as the performance was based over a 5 year period there up for sale.