Profits surge at Marston’s after ‘defining year’

Marston’s has kicked off its new chapter as a pure-play hospitality business with revenue up, profits soaring, and significant debt reduction.

After disposing of its 40% stake in CMBC in July with proceeds of £202.6m, the pub group is now solely focused on managing its estate of 1,339 pubs across the UK. Marston’s boasts a predominantly freehold estate valued at around £2.1bn.

In its preliminary results, Marston’s reported a 3% increase in revenue, reaching £898.6m, while like-for-like sales rose by 4.8%, fueled by strong performances in both food and drink sales.

Underlying profit before tax surged by 64.5% to £42.1m, up from £25.6m in 2023. Statutory profit before tax also rebounded, hitting £14.4m compared to a loss of £30.6m in the previous year.

Marston’s also reduced net debt by £301.7m, driven by the sale of its 40% stake in CMBC alongside proceeds from the disposal of non-core properties.

Net debt, excluding IFRS 16 lease liabilities, now stands at £883.7m.

Justin Platt, CEO of Marston’s PLC commented: “2024 has been a defining year for Marston’s as we began an exciting new chapter as a leading pure-play hospitality business. The sale of our stake in CMBC has been transformational, enabling us to significantly reduce debt, increase our flexibility and focus on what we do best: running great local pubs.

“This single-minded focus, combined with our rejuvenated strategy, is already showing in strong financial results. We’ve delivered like-for-like sales growth ahead of the market, significant margin improvements and robust cash flow, while current trading is encouraging with Christmas bookings already ahead of last year.

“Community-based pubs like ours play an essential role in UK society, backed by our hardworking local teams who give our guests great experiences every single day. All this gives Marston’s a superb foundation for sustainable, long-term growth, and fills us with confidence for 2025 and beyond.”