Pub group adds £2m to electricity bill while steady footfall fuels demand

Pub group Marston’s expects to spend £2m more than it budgeted on electricity in the second half of this year.

It has fixed prices for the winter, into the group’s new financial year, when it expects electricity costs to increase by £3m.

Despite the rising costs, the Wolverhampton-based group is upbeat about its performance and described customer demand as “encouraging”.

Marston’s chief executive Andrew Andrea said: “In spite of external economic headwinds, we have not seen any discernible change to customer footfall to date and remain cautiously optimistic that we will continue to see similar levels of customer demand across the summer where we will benefit from our investments in outside space and staycations.”

Like-for-like sales in the last 16 weeks to July 23 were 1% below sales in the last financial year unaffected by the pandemic, 2019.

In the last four weeks it has seen food sales weaken, which it blamed on the very hot weather.

It believes it is “well placed to deliver positive trading with its balanced estate of predominantly community pubs, investment in outdoor trading areas and staycation custom”.

Marston’s has completed 45 pub conversions, as it moves away from its value food Two for One brand.

“Initial indications are encouraging with positive customer feedback and improving returns,” said Andrea. “We remain confident that the changes we are implementing now will deliver a higher quality business for the Group over the medium to longer term.”

Marston’s share price closed last night at 48p – down 40% since March, and nearly two-thirds lower than it was at the start of 2020.

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