Marston’s feels the positive impact of Thwaites deal

WOLVERHAMPTON pubco Marston’s says it has made good progress this year with underlying profit before tax in line with expectations.
 
In an update on trading for the year ended 3 October 2015, the firm revealed
that in its Destination and Premium division like-for-like sales were 1.8% ahead of last year including food like-for-like sales growth of 1.7% and wet like-for-like sales growth of 1.7%. 

In the last 11 weeks of the period like-for-like sales have grown 2.2%.

Operating margin is ahead of last year and Marston’s completed 25 new pub-restaurants in the financial year just ended.

“As we highlighted at the interim results, the shape of our estate expansion will evolve slightly and in the 2016 financial year we plan to open at least 20 Destination pub-restaurants, two Revere sites and five Lodges,” it said.

“We have a good pipeline of sites to maintain similar levels of expansion for the foreseeable future.”
 
In Taverns, like-for-like sales were 2% ahead of last year, with growth of 3.1% in the last 11 weeks.  Its franchise business, which now operates around 550 sites, continues to perform strongly, the pubco said.
 
In Leased, like-for-like profits are estimated to be up 4% compared to last year.
 
In Brewing, Marston’s brand portfolio, supplemented by the acquisition of the Thwaites’ beer brands, has performed well, it said. 

Excluding Thwaites, own brand beer volumes were up 5% compared to last year, with strong performance in premium ales and the off-trade. Including Thwaites, own-brewed beer volumes were up 15%.
 
Ralph Findlay, chief executive officer, said: “The group has made good progress in the last year, with underlying growth in all of the business segments. 

“Our new pub-restaurants, premium pubs and lodges have all performed well and we have good visibility over the site pipeline to underpin our future growth. 

“In addition, we have substantially completed our disposal programme of smaller wet-led pubs. These actions, together with the success of franchise, have significantly transformed our pub business over the last three years.
 
“In brewing, the integration of the Thwaites’ brewing business has gone well, and we are well placed to continue to exploit the market growth in premium and craft beers and on-going growth in the off-trade.”