sp down 30% over 5 years - and even more if you look further back.
A succession of chairmen and CEO's have presided over remorseless decline but
still have their noses in the trough and no doubt ride to the AGM in their chauffeur
Its the unacceptable face of capitalism which will put JC and his cohorts into govt
and God help us then.
Well done nk.
I am nursing a sizeable loss from the time Mr Urban was appointed hence my bitterness towards him, Jones and the rest of the Board. The tired, old business model description hit the nail on the head. Simply revamping their numerous outlets will not do anymore. If my experience of the Katerina in Brighton Marina is anything to go by, existing outlets are not even being properly managed. See Trip Advisor, it isn't.
Can't understand why the 4 big shareholders appear so complacent.
Just hoping that an asset stripper activist will get involved and generate some shareholder value - because it sure is there waiting release by the right management. Anyway, I shall keep moaning in the hope of change.
Thank you TradingUp. I didn't expect much reaction to this given that nearly 70% of MAB is held by 4 names: Piedmont 26.7%; Elpida 23.4%; Standard Life 14.3% and Smoothfield 4.4%. Each appears to have a NED representing their interests! One can only imagine what they do at Board Meetings. My guess, turn papers and go to lunch. They do not appear to understand that their job is to challenge for if they did the current state of the company would not be allowed to continue. Personally I think that Urban and Jones have plundered the company enough and should go. Jones should be producing a financial analysis for the Board to consider. Is he? It appears not as the company just marks time from one report to the next while the sp falls. I was hopeful that Urban might turn things around. He hasn't so time to go - and take Jones with him. However, if these 4 investors are happy with the state of affairs maybe they should raise the £400m or so to take MAB private and release the 30% from this miserable management. It is to be hoped that someone with influence will take note for without some vision MAB's sp is going nowhere.
Under your watch the sp had more than halved. You were appointed as CEO in early 2015 when the sp was near to £5. Just look at it now. Meanwhile you pocket a huge remuneration package now amounting to over three-quarters of a million plus, plus, plus. How can this be justified?
Under your watch the sp shows no sign of recovery whatsoever. Please read a beginners guide to running a company for there are some obvious things you can do to increase shareholder value. I am sure your FD, who is similarly over compensated will be able to help you.
Astonished that major shareholders like Piedmont and Elpida tolerate these poor performances. The raft of NEDs sitting on the Board are doing what exactly to look after the interests of the shareholders they represent?
Shame on you all! At the next Board Meeting you all need to take a good look at yourselves and your complacent performances. You are way overdue having a Board Effectiveness review.
If there are no signs of rejuvenation by the time of the next results I hope the 4 major shareholders will get together and bring about much needed to change.
Mr Urban, you are on notice! Do please be in touch if you would like some guidance as to what to do next. Get some umph and go for it!
Still of the view that the Board should reduce the number of brands. The worst performers should be reviewed in order to release value to shareholders by both capital and income. Without some drastic action, MAB will just crab sideways awaiting the next 'hit' from the Chancellor whether by tax, minimum wage increase or some other unforeseen matter.
""""Trading through the core three week festive season was strong, with LFL sales growth of 3.9%. Christmas Day was a record taking day with like-for-like sales growth of 5.4% and 225,000 meals sold.
Over the full 7 week period since our last update our sales performance has been encouraging, although impacted by the adverse weather particularly in the run up to the festive season. The additional (53rd) week in the previous financial year impacts comparison of sales performance across key dates within this trading season. Adjusting for this to align calendar dates like-for-like sales growth was 1.6% over the previous 7 weeks and 2.2% in the year to date.
On an unadjusted basis, like-for-like sales growth in the year to date was 1.1% and total sales have increased by 0.5%, impacted by the disposals in the prior year."""
"With stockmarkets still close to all-time highs, it's become increasingly tough for income seekers to source stocks at a decent price. In fact, the typical dividend yield paid by a @GB:ASX:FTSE All-Share company now sits at a mediocre 3%.However, ..."
It seems that M&B have in the region of 15 to 20 brands. This is just too many - the overhead duplication must be horrendous. In order to improve shareholder value some consideration ought to be given to selling some of these groupings including the Alex in Germany. Time to whittle down - pick the best and get rid of those performing the worst of all. Sales ought to be above net asset value given the current SP compared with NAV.
"Pub group Mitchells & Butlers was under pressure after Canaccord Genuity downgraded the stock to 'hold' from 'buy' and cut the price target to 285p from 350p.
The brokerage said M&B's reasonable return on invested capital and balance sheet strength rankings are not enough to offset poor free cash flow conversion and earnings growth scores, which result in a bottom quartile ranking on its investment screen.
"Nascent recovery could get blown away by rising headwinds; it is the most food-led of the pubcos which leaves its profit before tax and ambitious capex plans vulnerable to rising costs and competition.
"Accordingly, we move our recommendation to hold."
Canaccord pointed out that M&B is in the first year of a plan to reduce the investment cycle to 6-7 years/pub from the current 10-12 years. It will spend £200m a year refurbishing 300 sites a year."
Well today's announcement is better news. Whilst being slow in coming it does look like a corner has been turned, at long last - my last post was November 2015! Keep up the good work Mr Urban and your team. Happy New Year!!!
Note the possible bid for Punch announced this morning.
A takeover of MAB would be just great too.
New management is needed to achieve a much better return on MAB's assets. SP decline over the past several months has been significant and the current board seem incapable of arresting the decline. Maybe they ought to consider establishing a chain of coffee shops? Not original but there are still gaps in the market.
Come on Mr Urban and Mr Jones. Step up or step aside. New ideas needed and that does not include buying anything more, at least until you have made much more of those already acquired. Please.
If the price closes below 243 then it looks to be 228-231 next. Even that isn't necessarily the bottom. After that the 212 area becomes what would appear to be a strong support. I still have no position.
Haven't held these for a few years, but bought at 259.3 as thought drop was overdone on results, Missed the bottom but good to see SP already beginning to climb back. Only a few days to ex-div will see whether to retain or sell. Will probably bomb now!
"Shares in Mitchells & Butlers gained on Wednesday after HSBC upgraded the stock to 'buy' from 'hold' and raised the target to 340p from 300p.
HSBC said while the company's first half results showed weak trading trends, the new chief executive Phil Urban has a "credible plan for improvement".
Mitchells & Butlers, which owns Harvester, All Bar One and Toby Carvery, reported a 1.5% fall in revenue to £1.1bn although pre-tax profits climbed to £83m from £75m.
CEO Urban announced plans to reduce stores at its Harvester chain to address fierce competition and real wage inflation following the introduction of the National Living Wage.
The group has also boosted investment in the refurbishment of sites to make them more attractive to customers. It follows a review which showed revamped outlets had done better than un-refurbished sites.
"We think that this is the right approach. As we show in this note, M&B has repeatedly underinvested in its sites, so it's hardly surprising that customers have gone elsewhere," HSBC analysts said in a note.
"We calculate the capital expenditure (capex) shortfall could be around £140m over the last five years. The new strategy addresses this; a £20m step up in capex per annum, along with a reduction in new site openings releases much more to be spent on refreshing the existing estate and converting underperforming sites into different brands."
HSBC said the shares have underperformed compared to its peers, trading on a fully adjusted enterprise value/earnings before interest and tax (EV/EBIT) discount of 12% to the wider sector.
The bank added that its sees value in the shares. "If sales begin to recover, as expected, and earnings forecasts stabilise, then the valuation should move back towards the wider sector."
The Frankie & Bennys owner, down 22.7 per cent to 420p, blamed weaker consumer sentiment, lower footfall and no repeat of 2015s strong cinema slate. Analysts saw oversupply in the casual dining sector as a bigger problem, which sent Mitchells & Butlers lower by 7.7 per cent to 267.6p. Cineworld also suffered, sliding 3.2 per cent to 480.4p a day before results.
" Just two-and-a-half trading days long, this is easily the shortest timeframe in our "Share of the week" series. Still, there have been some real standout performers, and competition for top spot was fierce. One share does, however, rise above ..."
"Choosing one of the best AIM performers of 2015 last January in my AIM tips of the year has ensured a strong performance from the portfolio of five companies.Three of the other four have also done well and they have outperformed both the FTSE AIM ..."
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