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Marston's (MARS)

Practical discussions about equity High-Yield Portfolios (HYP) for income
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Tight HYP discussions only please - OT please discuss in strategies
monabri
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Marston's (MARS)

#311088

Postby monabri » May 22nd, 2020, 3:29 pm

Very exciting...but what about the dividend?


https://www.londonstockexchange.com/exc ... 51057.html

Some discussion on the shares board.

viewtopic.php?p=311047#p311047

dealtn
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Re: Marston's (MARS)

#311101

Postby dealtn » May 22nd, 2020, 3:55 pm

monabri wrote:Very exciting...but what about the dividend?


https://www.londonstockexchange.com/exc ... 51057.html

Some discussion on the shares board.

viewtopic.php?p=311047#p311047


You wouldn't expect anything on Marstons dividend on an announcement like this.

You do get the news of what the Joint Venture's Dividend Policy is though.

Changeable
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Re: Marston's (MARS)

#311131

Postby Changeable » May 22nd, 2020, 5:00 pm

Amazing!
Currently up on the day 33.4p at 66p and 102% ! :o

Changeable
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Re: Marston's (MARS)

#311142

Postby Changeable » May 22nd, 2020, 5:24 pm

Dividend and Leverage Policy

· The Joint Venture will have a dividend policy the aim of which will be to distribute, annually, at least an amount equal to 90 per cent of the Joint Venture's free cash flow to equity (subject to applicable law and the ability of the directors to adjust dividend payments in the ordinary course).

· In the period to 31 December 2022, up to £20 million of restructuring costs will be excluded from the calculation of free cash flow to equity in order to support the dividend payment to both shareholders.

· CMBC's operational gross debt may not be incurred above 2x EBITDA without Marston's consent, except for in limited circumstances (including to support a dividend to Marston's where there has been expenditure outside the business plan).


And...

Marston's ongoing strategy

Marston's will continue with its stated strategy to reduce its indebtedness, deliver sustainable growth and maximise return on capital for shareholders. The up to £273 million Equalisation Payment will allow Marston's to further deliver on its debt reduction target, materially reducing debt outside the securitisation and providing additional financial flexibility. The Marston's management team remains focused on maintaining a balanced pub portfolio with a well invested estate and on operating its high quality, predominantly freehold, pub and accommodation business offering great places to drink, eat and stay.

What this actually means in terms of a cash dividend in the future, we'll have to wait and see !

dealtn
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Re: Marston's (MARS)

#311149

Postby dealtn » May 22nd, 2020, 5:36 pm

Changeable wrote:Dividend and Leverage Policy

· The Joint Venture will have a dividend policy the aim of which will be to distribute, annually, at least an amount equal to 90 per cent of the Joint Venture's free cash flow to equity (subject to applicable law and the ability of the directors to adjust dividend payments in the ordinary course).

· In the period to 31 December 2022, up to £20 million of restructuring costs will be excluded from the calculation of free cash flow to equity in order to support the dividend payment to both shareholders.

· CMBC's operational gross debt may not be incurred above 2x EBITDA without Marston's consent, except for in limited circumstances (including to support a dividend to Marston's where there has been expenditure outside the business plan).


And...

Marston's ongoing strategy

Marston's will continue with its stated strategy to reduce its indebtedness, deliver sustainable growth and maximise return on capital for shareholders. The up to £273 million Equalisation Payment will allow Marston's to further deliver on its debt reduction target, materially reducing debt outside the securitisation and providing additional financial flexibility. The Marston's management team remains focused on maintaining a balanced pub portfolio with a well invested estate and on operating its high quality, predominantly freehold, pub and accommodation business offering great places to drink, eat and stay.

What this actually means in terms of a cash dividend in the future, we'll have to wait and see !


The dividend of the Joint Venture will be paid to its owners, that is Marstons and Carlsberg, It will be up to them if, when, how much they in turn distribute to their owners.

More discussion on the Company Share News Board.

teecee90
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Re: Marston's (MARS)

#311215

Postby teecee90 » May 22nd, 2020, 9:14 pm

Nice. I’m now only 25% down in capital terms :D

Wizard
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Re: Marston's (MARS)

#311243

Postby Wizard » May 22nd, 2020, 11:34 pm

teecee90 wrote:Nice. I’m now only 25% down in capital terms :D

Yes, but if you had made a knee jerk reaction and sold after the dividend cut you would be down a lot more. This one at least seems to have been one where not having the broker on speed dial has been the right decision. But surely nobody on here that runs an HYP would have sold... :lol:

moorfield
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Re: Marston's (MARS)

#311258

Postby moorfield » May 23rd, 2020, 1:55 am

Wizard wrote:Yes, but if you had made a knee jerk reaction and sold after the dividend cut you would be down a lot more. This one at least seems to have been one where not having the broker on speed dial has been the right decision. But surely nobody on here that runs an HYP would have sold... :lol:


You'd be surprised, Wizard. :|

OLTB
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Re: Marston's (MARS)

#311270

Postby OLTB » May 23rd, 2020, 7:52 am

moorfield wrote:
Wizard wrote:Yes, but if you had made a knee jerk reaction and sold after the dividend cut you would be down a lot more. This one at least seems to have been one where not having the broker on speed dial has been the right decision. But surely nobody on here that runs an HYP would have sold... :lol:


You'd be surprised, Wizard. :|


I'm sorry for your financial loss, but your response did make me chuckle :)

It reminded me of the time last year when I had no spare cash, TUI had plummeted and I sold an IT to release capital to buy a terrific yield. Never chase yield, too good to be true etc. etc. these are all good lessons and examples that I have stored in a file on my laptop under 'Financial Idiocy'.

Cheers, OLTB.

GoSeigen
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Re: Marston's (MARS)

#311294

Postby GoSeigen » May 23rd, 2020, 9:01 am

Annoying, I've just started building my position, have peanuts invested. This is the third time it's happened with my pub/beer investments. I think I'm jinxed.

GS

moorfield
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Re: Marston's (MARS)

#311348

Postby moorfield » May 23rd, 2020, 11:14 am

OLTB wrote:
moorfield wrote:
Wizard wrote:Yes, but if you had made a knee jerk reaction and sold after the dividend cut you would be down a lot more. This one at least seems to have been one where not having the broker on speed dial has been the right decision. But surely nobody on here that runs an HYP would have sold... :lol:


You'd be surprised, Wizard. :|


I'm sorry for your financial loss, but your response did make me chuckle :)



Actually, I wasn't referring to myself... Cheers ;)


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