Marston’s cheered as growth strategy pays dividends

WOLVERHAMPTON pubco Marston’s has seen its strategy to grow the business pay off with a 7.6% increase in interim group revenue to £342.1m (2011: £317.9m) and underlying pre-tax profit up 14.7% to £33.5m (2011: £29.2m).

The group said managed like-for-like sales were up 3.6% over the six months compared with last year and underlying operating margins were up 0.3% and operating profit up 6.8%.

The Tenanted and Franchised operations profit grew 3.1% with an improving trend, while brewing revenue was up 6.6% with operating profit growing 2.7%.

Underlying earnings per share rose 14.6% to 4.7p per share (2011: 4.1p) and interim dividend was up 5% to 2.2p per share (2011: 2.1p).

The firm said its managed pub development was on target to complete 25 new-build pubs this financial year, which would add to strong returns.

A strategy to increase meals had seen a rise of 11% during the period, with food now representing 43% of all retail sales.  

The franchised pub development is now implemented in 419 pubs to date with profit uplift in line with targets.

The firm also remains the market leader in premium ale with group ale volumes up 2% with strong growth and market share gains in the premium ale sector.

Current trading for the 32 weeks to May 12 shows managed lfl sales up 2.4% including lfl food sales up 2.7% and lfl wet sales up 2.3%.  Tenanted and franchised profits are estimated to be up 3% and the firm’s own-brewed volumes have also seen growth.
 
Commenting on the interims Ralph Findlay, Marston’s Chief Executive Officer, said: “We have delivered a good performance in the first half year against a weak consumer backdrop.  Our growth in revenue and earnings was underpinned by our strategic focus on delivering value, high service standards and a quality offering to our consumers and customers.  

“Our confidence that we are well positioned for the future is reflected in our declared dividend increase.”