Marston's – Interim Results

–  Revenue and earnings growth despite Easter falling later this year in second half

§ Easter impact on profit before tax estimated at £1.5 million

–  Statutory profit before tax up 61% reflecting positive movement in valuation of swaps

–  Leverage maintained at 5.0x, fixed charge cover improved to 2.6x

 

·     Improving quality of pub estate

–  Average profit per pub up 3% in first half year

–  Four pubs and bars opened

–  Three lodges opened, taking estate to over 1,000 rooms

 

·      Market-leading beer business continues to demonstrate growth

–  Strong brand portfolio continues to outperform market

–  Further market share growth, with 26% share of premium bottled ale and 19% share of premium cask ale

·      Interim dividend up 3.8% to 2.7p per share

 

·     Acquisition of Charles Wells Brewing and Beer Business for £55 million (see separate
      announcement)

–  Transaction to be funded from the proceeds of an equity placing to raise 9.9% of issued  
share capital announced today (see separate announcement)

·     Current trading (for 30 weeks incorporating Easter) remains encouraging

–  Destination and Premium like-for-like sales up 1.6%; operating margins in line with last year

–  Taverns like-for-like sales up 1.7%; Leased like-for-like profits up 2%

–  Own-brewed beer volumes up 2%

–  On track to open 23 pubs and bars and 8 lodges in current financial year

–  Acquisition of three Pointing Dog Premium pubs in May and agreement to purchase seven Destination and  Premium pubs

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