Marston’s profit swing boosted by franchises

THE rollout of a franchise-style retail agreement has contributed to a turnover around in profits at Wolverhampton-based pubco Marston’s.

In a trading update for the 23 weeks to March 12, 2011, the plc said today that like-for-like profits were estimated to be 0.1% ahead of last year its tenanted and leased division, Marston’s Pub Company.

This compares with a 4% decline in the 2010 financial year which was primarily attributable to the continuing rollout of the retail agreement, expected to be operating in around 190 pubs by the half-year.

In Marston’s Inns and Taverns, its managed pubs division, like-for-like sales for the period were 2.4% ahead of last year, including like-for-like food sales growth of 4.7% and like-for-like wet sales growth of 1.5%.

Marston’s Beer Company saw own-brewed beer volumes up 4% against last year which, it said, compared favourably to a UK ale market down by around 7%.

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Premium cask ale was up 5% and bottled ale up by 16% in the period, the firm said.

Marston’s has an estate of around 2,150 pubs nationally and its brands include Pedigree, Hobgoblin, Banks’s and Ringwood.

Marston’s says it will have opened 20 new venues by the end of September, eight of which are pub-restaurants.

Chief executive Ralph Findlay said: “The performance of the group in the year to date has been encouraging.

“Our consistent focus on offering our consumers value for money in high quality pubs, together with sector-leading shares in growth segments of the beer market, places us in a strong position for the future.”