I bought into these in December last year, primarily for the yield, but also for the potential growth of one of the better companies in their sector.


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Marston's Fundamentals (MARS)

A mention here.

Numis seem to still be reasonably positive on the sector after the budget.

Numis Add 158.25 157.90 180.00 180.00 Retains

Trading Update

We have continued to make profitable progress in line with our expectations.

In Destination and Premium, like-for-like sales for the 41 week period were 1.7% ahead of last year, including like-for-like food sales growth of 1.6% and like-for-like wet sales growth of 1.6%. In the last 10 weeks of the period, like-for-like sales are up 2.0%. Operating margin is slightly above last year and we remain on track to complete 25 new-build pub restaurants in the current financial year.

In Taverns, like-for-like sales for the 41 week period were 1.7% ahead of last year and in the last 10 weeks of the period, like-for-like sales were up 2.0%. Our franchise business continues to perform strongly and now operates in around 550 pubs.

In Leased, profits for the 41 week period are estimated to be in line with last year. Average profit per pub was up 4%, reflecting our higher quality leased estate.

In Brewing, own-brewed beer volumes, excluding Thwaites, were up around 4% compared to last year. Including Thwaites, own-brewed beer volumes are up 10%.

Net debt and cash flow are in line with expectations.

The recently announced Government plans to introduce a mandatory Living Wage by 2020 are consistent with our expectation that the gap between the National Minimum Wage and the Living Wage would be closed over time. The additional cost of meeting the higher target of £9 per hour by 2020 will mean that wage costs will be modestly greater than we had expected, but the impact compared to our plans is mitigated by the fact that we had anticipated increases above the rate of inflation, and the lower rate of corporation tax from 2017. Our view remains that Government should prioritise taxation and business rate reductions to reduce the cost of doing business and increase consumer confidence.


more....

Canaccord Genuity Hold 151.60 175.00 175.00 Reiterates

MARS sees underlying FY pretax profit in line

StockMarketWire.com

Marston's said it has made good progress this year with underlying profit before tax in line with expectations.

In Destination and Premium, like-for-like sales were 1.8% ahead of last year including food like-for-like sales growth of 1.7% and wet like-for-like sales growth of 1.7%.

"In the last 11 weeks of the period like-for-like sales have grown 2.2%. Operating margin is ahead of last year and we completed 25 new pub-restaurants in the financial year just ended," the company said in a statement.

"As we highlighted at the Interim Results, the shape of our estate expansion will evolve slightly and in the 2016 Financial Year we plan to open at least 20 Destination pub-restaurants, two Revere sites and five Lodges.

"We have a good pipeline of sites to maintain similar levels of expansion for the foreseeable future.

"In Taverns, like-for-like sales were 2.0% ahead of last year, with growth of 3.1% in the last 11 weeks. Our franchise business, which now operates around 550 sites, continues to perform strongly as we evolve and develop the business model.

"In Leased, like-for-like profits are estimated to be up 4% compared to last year.

"In Brewing, our strong brand portfolio, supplemented by the acquisition of the Thwaites' beer brands, has performed well. Excluding Thwaites, own brand beer volumes were up 5% compared to last year, with strong performance in premium ales and the off-trade. Including Thwaites, own-brewed beer volumes were up 15%.

"The Group will no longer provide like for like, segmental current trading data for the short seven week period immediately post the year end with effect from the results for the 12 months to 3 October 2015 which will be reported on 26 November 2015.

PENSION VALUATION

"We have concluded the triennial valuation of our pension scheme for the period ended 30 September 2014 and as a consequence of this we have agreed a reduction in cash contributions from the current £13m to £7.5m per annum."

Story provided by StockMarketWire.com

SP largely unaffected.

Marston's swings to FY profit

StockMarketWire.com

Marston's has swung to a FY pretax profit of GBP31.3m, from a loss of GBP59.2m, on a surge in revenue to GBP878.6m, from GBP815.3m. Final dividend was 4.5p a share, up 4.7% on the year.

CEO Ralph Findlay said:

"The three year transformation of our pub portfolio towards an optimised estate is now largely complete. We approach 2016 with our business successfully positioned at the forefront of industry trends with high quality, well-invested pub assets which are fit for the future.

"We have great people and a growing portfolio of leading beer brands where our focus on premium and local provenance continues to serve us well.

"Looking forward, we remain on track to open at least 20 new-build pubs this year and have in place a carefully selected site pipeline in key regional locations for 2016 and beyond.

"Whilst new-build, food-led pubs remain our core growth driver, we have evolved our strategy to capitalise upon other opportunities for expansion where we see attractive returns potential.

"At this early stage of the current year trading has begun well and we look forward to building on this momentum over the months ahead to deliver another year of good progress for the Group."

HIGHLIGHTS:

- Underlying Group revenue up 7% to £845.5 million

- Underlying profit before tax up 10% to £91.5 million

- Underlying earnings per share up 10% to 12.9p

- Profit growth in all trading segments despite disposals

- Operating cashflow up £34.5 million to £162.3 million

- Leverage reduced 0.3x to 5.1x

- Return on capital up 0.3% to 10.8%

- 25 new pub restaurants completed this year, creating 1,250 new jobs

- Continued conversion of Taverns to Franchise - around 550 now converted

- High quality Leased business delivered like-for-like profit and rental growth

- Average profit per pub up 15% in 2015, up around 40% since 2012

- Strong brand portfolio continues to outperform market with volumes up 15%

- Innovation continues - Hobgoblin Gold c.20k barrels sold since launch this year

- Thwaites acquisition complements strategy and fully integrated

Can't see anything not to like out of that lot. up 3% in early trading.

From Monday :- Deutsche Bank Hold 170.20 170.00 180.00 Reiterates

Goodbody Hold 162.25 135.00 160.00 Upgrades

Same with MAB, the new living wage seems to have spooked investors in this sector. This too shall pass :o)

Trading update http://www.moneyam.com/action/news/showArticle?id=5199878

Link copied Marston’s “in a pretty strong place”, says CEO Findlay

Interims out tomorrow, not expecting fireworks but rather wait until after the European Football Tourney results for a boost.

Stan - Check out MAB, less volume higher sp at moment. Interim Thursday.

Shares mag reckon MAB interims on 19th May are likely to disappoint.
2517

Oh well that's it then George, sell, sell sell! :0) Not in either just an observation.

I'm in MARS but not MAB so you would probably be better off buy, buy, buy MAB :0) and sell, sell, sell MARS :0(
2517

Interim Results

Profit and cash flow growth from high quality pub and beer business

· Strong trading performance:
- Underlying Group revenue up 11.5% to £428.7 million
- Underlying profit before tax up 11.8% to £33.1 million
- Underlying earnings per share up 11.9% to 4.7 pence per share
- Profit growth in all trading segments
- Operating cash flow up £23.1 million to £81.3 million
- Leverage reduced 0.4x to 5.0x. Fixed charge cover up 0.2x to 2.6x
- Statutory profit before tax up £50.3 million to £22.8 million

· High quality pub estate delivering strong growth:
- Like-for-like sales growth of 3% across managed and franchised pubs
- Seven pubs and three lodges opened in the period
- First new-build Tavern successfully opened under franchise model
- High quality Leased business delivered like-for-like profit and rental growth
- Average profit per pub up 13% in 2016, up 44% since 2012

· Market-leading beer business continues to grow strongly:
- Underlying operating profit growth of 16% driven by Thwaites acquisition
- Strong brand portfolio continues to outperform market with volumes up 22%
- Market share up 1.5% in premium cask ale and 1.1% in bottled ale
- Hobgoblin Gold (2014 launch) now a 'top 15' premium bottled ale

· Interim dividend up 4% to 2.6p per share; cover of 1.8 times improved vs H1 2015

· Full year plans on track
- Performance to date in line with expectations
- At least 20 new pubs this financial year, including two Revere bars
- Five new lodges

Commenting, Ralph Findlay, CEO said:
"We are encouraged by our first half performance and are on track to meet our expectations for the year. In pubs, we have driven our growth by the organic development of pub-restaurants and franchise-style pubs, and more recently through investment in lodges and premium bars, widening our appeal. In Brewing, we had an excellent first half year and achieved good growth through our industry-leading brands and service."

18 May Panmure Gordon Buy 156.60 175.00 175.00 Reiterates