Marston’s cheered as improvements continue
MIDLAND-based pubco Marston’s has said it remains on track to meet full year expectations and continues to see improving trends across each of its trading divisions.
The Wolverhampton brewer and pub owner said recent trading had been encouraging, although it benefited more from the good weather than England’s lacklustre performance in the World Cup.
In an interim management statement covering the 43 weeks to July 31, the company said its managed pubs division, Marston’s Inns and Taverns had performed well based on successful food promotions and a new-build strategy that was helping to drive growth.
Like-for-like sales for the period were 1.7% ahead of last year, with like-for-like food sales growth of 2.5% and like-for-like wet sales growth of 1.3%. In the second half-year this good performance has continued, with like-for-like sales in the 11 weeks to July 31 up by 2.7%.
It said it had also achieved an estimated 0.6% increase in operating margin which it anticipated would be maintained for the rest of this financial year.
In its tenanted and leased pubs division, Marston’s Pub Company underlying profit trends have continued to improve with like-for-like profits estimated to be down 4% in the period, which compares favourably to the 4.5% decline reported in May’s interim results.
Approximately 86% of the estate is let on substantive agreements, including Retail Agreements. It said it had 88 pubs on Retail Agreements, with performance in line with expectations. Its aim is to have 100 pubs operating under this agreement by the end of the financial year.
In Marston’s Beer Company, despite strong prior year comparatives, its own-brewed ale volumes were in line with last year. Even so, this still out-performed the rest of the UK beer market, which declined by around 6%. Premium ale volumes increased by 3% in the period and it said it continued to lead the premium cask ale and premium bottled ale market segments.
Net debt and cashflow were in line with our expectations, while its development plans remain on track. It has opened 11 new sites and is on-site at a further four, with performance at the new outlets showing encouraging signs.
In outlook, it said it remained cautious about consumer confidence but had been encouraged by its recent trading performance.
“Our focus on value for money, high quality pubs and local beers combined with clearly defined strategies for each of our trading divisions place us in a strong position to meet the forthcoming challenges,” it said.
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