The chart below tells you all you need to know about Mr Urbans time in charge. Guess he has bought more time from the NEDs both for himself and Jones. He has to start delivering soon to justify his £1m package - like by the end of the year. Every announcement is soooo predictable - weather and wage costs always get a mention. He says he is doing the right thing - bags of initiatives - but nothing showing through to the bottom line yet. He doesnt even have the confidence to indicate whether or not a dividend will be paid. Most similar groups are doing far better.
I think you have made the right decision for you. Knowing what I know now, who would invest in MAB? The large shareholders ought to raise the £400m or so to take it private and break it up. The sum of the parts is greater than than that of the whole.
Didn't want to comment before listening to the web cast.
Messrs Urban and Jones talk the talk but this has yet to show through into the numbers. As was admitted, the market's initial reaction was to have a big write-down in the sp. There has been some recovery since but we are still below that before the announcement and as at the beginning of the year.
Much was made of the weather especially snow on Sundays and of being aware of the challenges, especially labour costs.
Hard to fault the de-gearing and pension contributions. Would have thought though that by now there would have been a better grip on the underperforming assets. It was admitted that there are too many 'uninvested' sites.
We are to be energised with Ignite 2 which has 8 "buckets" incorporporating 43 initiatives some of which appear long overdue.
I did like the apprenticeship initiative though - and the chef academy. Great that we are training our own people. While this is being pushed as a result of a reduction in applicants from Europe, it should be on-going. As a country we do not train enough of our people notably doctors and nurses.
No mention of Germany. Assume it is not doing great things as it was not held up as something to emulate. Why not sell and release capital/reduce debt? Simplify. Reduce costs and distractions. Take advantage of a strongish .
As I say I am flummoxed. If Mr Urban is to be believed, results of the 224 completed projests with 20% returns should start to flow through in the next period. Miller and Carter outlets are supposed to be going well. 300p by the end of the year is a modest target. Others are doing much better noticeably JDW. 325p?
Outlook is still so uncertain that they will not commit to a dividend until the results are in.
bit of a spike in the last couple of days. something may be stirring. perhaps Mr Urban
has taken note of Dandigirls pertinent remarks and is looking to sharpen up his act.
Or could be a re awakening from one of our big four investors? or this weeks high
temperatures pushing more punters into our pubs. Who knows -but certainly the
recent uplift of the sp which seems to have a bit of consistency about it is more than
welcome after years of stagnation.
Mr Urban: Think you will agree that this has not been a great first quarter.
Below is a comparison with the FTSE250 over the last three years. All on your watch!
Happy? Pleased? Proud of your performance to date? What about a modest target of 300p by year end? Time to get to work cutting costs/rationalising. Too many brands, too much overhead, too many head office costs.
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.
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