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Banks giving Marston's the thumbs-up
10.12.08
There was some rare good cheer from the pubs sector today, when Marston's showed it still has the confidence of its lenders.
In an industry awash with red ink and debts, Marston's has proved resilient. Today it said it has extended its bank facility with six lenders by another three years to 2013, leaving its debt with the longest distance to maturity of any pub company.
Finance director Paul Inglett said the deal allowed a more "flexible financing structure". Mark Brumby at Blue Oar Securities said: "Whilst it would be unseemly to gush, this is really excellent news. In these straitened times, it signals the banks' confidence in Marston's cashflows."
The company recently caused controversy by holding its final dividend at 8.47p. Investors were grateful, but analysts wondered whether it would have been wiser to hold on to the cash. Profits for the year to October were down 20% to £76.2 million.
