Marston’s sees full year sales ahead of last year
PUBCO Marston’s said today it had been encouraged by its full year trading performance with sales across its operations ahead of last year.
In a trading update ahead of its full-year results, the Wolverhampton-based group said: “The momentum in our trading performance for the year has been encouraging, despite the difficult trading environment. Earnings before tax and exceptional items are in line with our expectations, with improvement in all trading divisions.”
Its managed pubs division, Marston’s Inns and Taverns, saw like-for-like sales 2.9% ahead of last year, including food like-for-like sales growth was 5% and like-for-like wet sales grew 1.8%. Like-for-like sales for the 10 weeks to October 1 2011 were up 2.9%. Food now accounts for 42% of total sales, a 2% increase on last year. Margins are slightly ahead of last year.
At Marston’s Pub Company, its tenanted and leased pubs division, the group said improvement in the profit trend seen throughout the year had continued.
Like-for-like profits are estimated to be 0.6% up on last year. This improvement is down to a combination of continued profit growth from the pubs operating on long-term traditional agreements, and the continued rollout of the group’s franchise-accredited Retail Agreement. The new agreement is now operating in 330 pubs against a target of 600 pubs by 2013.Marston’s said this was in one with expectations.
Marston’s Beer Company, the own-brewed beer division, saw volumes grow 2% on last year, outperforming an ale market down 6%. Premium cask ale volumes were up 5% in the year and bottled ale was up 6%.
“We continue to lead the market in both of these segments. We expect divisional profit for the year to be slightly ahead of last year,” it said.
Net debt and cashflow are both in line with expectations.
The pubco said its New-Build Development Programme was progressing well, with 19 developments completed and a 20th site expected shortly. The plan is to open an additional 25 new pub-restaurants in the new financial year. The returns achieved from the new-build programme continue to exceed original targets.
Ralph Findlay, Marston’s chief executive, said: “We have been very encouraged by the performance of all areas of our business this year. The objectives of our clearly defined strategy are sustainable growth, higher investment returns, and reduced gearing.
“Our operational focus on offering value for money to our customers together with high service and quality standards is helping us achieve those objectives.”
The preliminary results for the year ended October 1 will be announced on November 30, 2011.
