City briefs: FW Thorpe; Marstons
Specialist lighting manufacturer FW Thorpe has seen its revenues increase by 22% to £144m this year following the acquisition of Zemper lighting.
The Redditch-based firm has also seen operating profit increase by 29% to £25m, with the board saying this is an achievement that can be built on.
In a statement from the Chairman, Mike Allcock said:
“Another year has passed without a return to a more stable business climate, and with one crisis being replaced by another. Nevertheless, I am again pleased to report that the Group has increased its revenue and profitability (before and after the effects of its acquisition of Zemper).
“This positive performance is especially admirable considering most companies in the Group suffered severe component shortages throughout the financial year, hampering production output and efficiency, and softening year-end results. Most Group companies continue to face supply shortages, particularly for electronic components and microchips, whilst having substantial order books.
Component scarcities have inevitably affected the Group’s enviably high levels of customer service, but I hope the situation is at last improving. In addition, of course, the Group is also contending with significant cost inflation of materials, wages and utilities.”
Pub group Marstons has seen sales drop by 1% in the last year vs pre-pandemic. Marstons says this reflects the impact of trading restrictions in December and January as a result of Omicron and the corresponding impact on consumer sentiment in H1.
Total retail sales in the group’s managed and franchised pubs were up 2% vs 2019. Drink sales continued to outperform food sales, which the group says has reinforced its predominantly community pub estate. Growth in Marstons has been driven by drink sales, with food sales being weaker in this period due to the hot weather.
Marstons says its gas price is fixed until the end of March 2025 with no additional incremental spending anticipated. Electricity costs in the last 10 weeks of 2022 have been higher than originally expected due to the volatile market for energy over the last few months.
The group has welcomed the announcement by the Government concerning the energy price cap, but it awaits the review of the price cap.
Andrew Andrea, Chief Executive Officer of Marstons said: “This is a good performance, with the trading momentum we experienced in the Summer continuing. Marston’s has a long-term capital structure which is well suited to the current market environment and we remain committed to our debt reduction strategy with which we continue to make progress. We are managing cost inflation well with food, drink and energy costs covered for the immediate future.
“Whilst we are not complacent and can’t predict what the future will hold, what is clear is that people want – and are continuing – to visit our predominantly community pubs. The level of customer demand we are experiencing is encouraging which underpins our confidence that our strategy is working and we are making positive progress in that regard. Looking forward, we are primed to maximise the trading opportunities provided by the forthcoming World Cup and first restriction-free Christmas in three years. Marston’s is in good shape and well positioned to navigate the future.”
