MARSTON'S PLC
INTERIM RESULTS FOR THE 26 WEEKS ENDED 31 MARCH 2018
Strong revenue and underlying PBT growth, dividend maintained, asset value underpinned
· Revenue and underlying PBT growth with underlying EPS and dividend maintained
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Underlying |
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Statutory |
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|
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2018 |
2017 |
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Revenue |
£528.1m |
Up 20% |
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£529.0m |
£451.5m |
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Profit/(loss) before tax |
£36.3m |
Up 8% |
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£(13.4)m |
£36.7m |
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Earnings/(loss) per share |
4.8p |
In line |
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(2.0)p |
5.2p |
– Underlying profit growth in Taverns, Leased and Brewing
– Destination and Premium (D&P) profits in line with last year despite poor weather
· Managed and franchise like-for-like sales in line with last year
– Taverns like-for-like sales up 2.9%, D&P like-for-like -1.8% (drive-to destinations weather
impacted)
– Average profit per pub up 1%
· Strong organic growth in Brewing and from CWBB acquisition
– Total volume +74%, market share growth in premium cask ale to 23% and premium packaged ale to 24%
– On track to deliver at least £4 million target synergies from CWBB acquisition
– CWBB brands have helped us penetrate new markets/geographies
· Operating cash flow up 6%, pro-forma leverage and pension deficit reduced
– Pro-forma leverage down 0.2x to 4.8x, fixed charge cover unchanged at 2.6x
– Triennial pension valuation – funding deficit reduced by £10 million to £40 million
· Net asset value of 142 pence per share supported by estate revaluation
– Three year estate revaluation at £2.2 billion
§ Statutory loss principally reflects write-downs in income statement
· Interim dividend maintained at 2.7 pence per share
· New openings on track, modest reduction to capital plans for 2019
– Six pubs and bars opened; on target to open 15 for the financial year
– Six lodges opened, taking estate to over 1,500 rooms
– 2018 openings performing strongly
– Target 10 pubs and bars, five lodges in 2019, a net capital reduction of £25 million
· Outlook
– Expect to deliver growth in both revenue and underlying PBT in 2018
Commenting, Ralph Findlay, CEO said:
“We are pleased to report another period of good growth in revenue and underlying profit before tax. Strong trading in Brewing and Taverns and Leased pubs offsets the adverse impact of poor weather on 'drive-to' pubs in our Destination estate, further validating the resilience of our model.
We have made modest and prudent adjustments to our capital plans to reflect the current economic and consumer climate. However, Marston's is a balanced business and we are confident that the medium-term outlook for the eating-out and wet-led pub sectors remains good and that targeting an increased profitable share of a growing market through an unremitting focus on quality, service, standards and value for money remains key.”
Forthcoming Events
Please find below the forthcoming reporting dates for the Group, which are also available on the investor calendar on our website – www.marstons.co.uk/investors
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July trading update |
25 July 2018 |
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2018 Preliminary results
2019 Interim results
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21 November 2018
15 May 2019 |
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ENQUIRIES:
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Marston's PLC Tel: 01902 329516 |
Instinctif Partners Tel: 020 7457 2020 |
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Ralph Findlay, Chief Executive Officer |
Justine Warren |
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Andrew Andrea, Chief Financial and Corporate |
Matthew Smallwood |
An audio webcast of the results presentation will be available at
http://webcast.instinctif.tv/886-1178-19760/en
on 16 May 2018
NOTES TO EDITORS
· Marston's is a leading pub operator and independent brewer.
· It has an estate of 1,564 pubs situated nationally, comprising managed, franchised and leased pubs.
· It is the UK's leading brewer of premium cask and packaged ales, including Marston's Pedigree, Wainwright, Lancaster Bomber and Hobgoblin. The beer portfolio also includes Banks's, Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers. Following the acquisition of CWBB, Marston's has added Bombardier, Courage and McEwan's to its brand portfolio, as well as a range of licensed brands including Young's, Founders and Estrella Damm.
· Marston's employs around 14,500 people.
· Leverage is defined as the ratio of net debt before lease financing to underlying EBITDA. The calculation has been adjusted to reflect the proforma earnings from the acquisition of CWBB in the second half of the prior financial year.
· The underlying results reflect the performance of the Group before exceptional and other adjusting items. The Directors consider that these figures provide a useful indication of the underlying performance of the Group.
GROUP OVERVIEW
We are pleased to report growth in underlying revenue and profit before tax, despite the impact of poor weather on our Destination business.
Total underlying revenue increased by 19.8% with growth in all trading segments principally driven by the acquisition of the Charles Wells Beer Business (“CWBB”), the contribution from new openings and pub acquisitions and positive like-for-like sales in our Taverns business. Total managed and franchised like-for-like sales were in line with last year with growth in Taverns offset by weaker sales in Destination and Premium, which were impacted by the poor weather in the period.
Group operating margins were 2% behind last year reflecting increased costs in Destination and Premium, the continued impact of converting pubs from tenancy to franchise, the short-term dilution impact of the distribution contracts in Brewing and the CWBB acquisition which operate at a lower margin than our existing beer business.
Underlying operating profit of £74.3 million (2017: £71.0 million) was up 4.6%.
Underlying profit before tax was up 7.7% to £36.3 million (2017: £33.7 million), principally reflecting the strong Brewing and Taverns performance, including CWBB. Basic underlying earnings per share for the period of 4.8 pence per share (2017: 4.8 pence per share) were in line with last year, reflecting the strong growth in profit before tax and the equity placing undertaken to finance the CWBB acquisition.
On a statutory basis, the loss before tax was £13.4 million principally reflecting accounting adjustments relating to the estate valuation and changes in the fair value of interest rate swaps, both of which are non-cash items. The basic loss per share was 2.0 pence per share.
Operating cash flow of £63.3 million was 6% higher than last year reflecting higher profits in the period.
Net debt at the period end was £1,393 million. Net debt excluding lease financing of £1,059 million is £2 million below last year. Excluding property leases with freehold reversion entitlement, and on a pro-forma basis (incorporating the post-synergy benefits of CWBB) the ratio of net debt to underlying EBITDA was 4.8 times at the period end (2017: 5.0 times). Fixed charge cover was unchanged at 2.6 times.
The three-yearly external valuation of our property portfolio was £2.2 billion, broadly in line with book value. There is an associated non-underlying charge of £40 million accounted for in the income statement.
Including the adoption of the property valuation, net asset value is £1.42 per share.
We have also concluded the triennial pension valuation for the three years to 30 September 2017. The £40 million funding deficit is a £10 million improvement despite the adverse impact of lower gilt yields, reflecting a consistent level of funding and a sensible investment strategy. We have agreed with the trustees to maintain current pension 'top-up' contributions of around £8 million per annum, but that the Group will not be obliged to maintain them once the deficit is cleared. On the basis of the existing investment strategy and assuming no favourable movement in gilt yields, we are targeting to clear the deficit position by financial year 2022 at the latest.
Outlook, dividend and Board structure
We expect to deliver growth in both revenue and underlying profit before tax in 2018 despite the impact of weather on our first-half results. Our drinks-led businesses are in growth and the forthcoming World Cup presents a further opportunity. In Destination, we anticipate an improvement in like-for-like sales trends over the second half-year against softer comparatives.
With regard to cost guidance for 2018 there are no material changes to the cost trends highlighted previously. We have protected a significant proportion of our cost base through long-term relationships with suppliers and fixed price contracts, actively managing the risk to our margins.
We propose to maintain the interim dividend at 2.7 pence per share reflecting underlying earnings per share in line with last year. It remains our policy to target dividend progression commensurate with earnings growth and achieving dividend cover of 2 times over the medium term.
As announced previously our Chairman, Roger Devlin, will step down from the Board at the end of May. A search process to find his successor is underway, and in the meantime Carolyn Bradley, Senior Independent Director, will be appointed Interim Chair from 1 June 2018.
We are in the process of combining the Taverns and Leased operational teams so that area managers will now manage a range of tenancy, lease and franchise-style agreements. This is intended to create even more flexibility in choice of operating models, and we will merge the two segments for reporting purposes in the 2018 full-year results.
Allocation of growth capital
In 2018, we expect to open 15 pubs and bars and six lodges.
We believe that investment in new pubs, lodges and bars in chosen locations continues to create shareholder value through generating high return on capital, and it is the main component of our strategy to achieve organic growth. To date we have opened six pubs and bars and six lodges. New openings in 2018 have performed strongly, and we continue to see good opportunities for further expansion.
Given recent sector trends, including high levels of new openings and investment in the eating-out sector, we are adopting a more cautious approach to new openings in the short term. The market is beginning to respond to recent over-supply and we expect that competition for new sites will reduce. In the meantime we expect to open 10 pubs and five lodges in 2019 representing a £25 million reduction in capital investment from the original programme.
Our site pipeline remains strong and we expect to maintain the current level of site acquisition.
Market position
We invest across the wider eating-out drinking and accommodation sectors, protecting against cyclical trends in any one part of the market. We operate wet-led community pubs (Taverns), food-led destination and premium pubs and bars (Destination and Premium), and offer accommodation (pubs with rooms and lodges). In Brewing we have significant market shares in on-trade, off-trade and export markets.
At heart we are a pubs and beer business. Whilst we are not immune from the pressures affecting the wider eating-out market, pubs have performed better than restaurants this year. In developing our new-build pubs in recent years we have continued to ensure that pub values remain a core part of our offer, even in the more food-led pub-restaurants and we have sought sites away from competitive 'hot-spots'. These factors have contributed to our resilient performance.
Well invested wet-led community pubs continue to offer good opportunity. Those that remain are better pubs, in stronger locations, and have benefited from a surge of interest in craft beers and spirits as well as engagement with local communities and effective use of social media.
Similarly, although the wider eating-out market has been challenging, this market is still in growth in the UK and is expected to continue to grow. There remains opportunity to continue to increase market share in a highly competitive, but growing market.
In terms of pricing, value for money is important in our pubs. The sector has faced significant cost challenges in recent years as property, people and input costs have increased, and our ability to offset those while remaining affordable is testament to the quality, service and standards experienced by customers in our pubs and bars.
Strategy and market
Our focus is on delivering sustainable growth and maximising return on capital, with six key components to our strategy as outlined below:
1. Operating a high quality pub estate.
We operate a pub estate that caters for a broad range of customers, with flexible operating models. This allows us to ensure that we have the right consumer offer and the most appropriate operating model to maximise sales and profits for each pub. The key elements are as follows:
· Destination and Premium – 402 pubs. Our Destination pubs offer family dining and great value in a relaxed pub environment.
Our Pitcher & Piano bars and Revere pubs and bars offer premium food and drink in 'flagship' town centre and suburban locations.
· Taverns – 806 pubs. Our community pubs are great 'locals' with a more traditional pub ambience. Success is driven by good licensees and community engagement.
· Leased – 356 pubs. These distinctive pubs benefit from a high degree of independence and committed licensees operated under longer-term leases. Lessees have a choice of tied or free-of-tie agreements.
2. Targeting pub growth.
New pubs and bars. In our Destination and Premium business, we have opened over 200 pub-restaurants in the last 10 years, representing around 60% of the current Destination estate. These pubs offer family dining at reasonable prices and generate high turnover, with target sales of around £25,000 per week and a food sales mix of around 60%.
We also target growth in our Premium pub business, comprising Pitcher & Piano and Revere, aiming to selectively expand the estate through both new site development and acquisition.
Development of the franchise model. The majority of our pubs in the Taverns business are operated using franchise-style agreements. These offer flexibility and reduced risk for licensees, and incentivise local and customer engagement. The entrepreneurial nature of licensees attracted by this model has proven to be successful in generating growth in community pubs.
3. Increased investment in rooms.
We operate over 1,500 rooms across our Destination and Premium pub estate, including 27 lodges. The combination of pub-restaurant with an adjacent lodge is attractive in the context of increasing business and leisure travel. We aim to open 5-10 new lodges per year, mainly on sites adjacent to new-build pub-restaurants.
4. Offering the best consumer experience: quality, service, value and innovation.
Our range of Destination pub food offers includes Pizza Kitchens, Milestone Rotisserie, Carvery, Smokehouse, Generous George, and Grill & Pizza, as well as traditional pubs with food. 'Two-for-One', a price-leader format, has been steadily repositioned over the last 18 months to provide an enhanced customer experience and improved service style: spend per head and customer feedback have both improved. Having converted 45 pubs to date, we expect a further 100 conversions in the next two years at an additional cost of £5 million per annum.
In our Premium pubs, food quality is underlined by the use of local ingredients, more fresh meat and produce, and the best kitchen equipment available, including Josper grills and wood-fired pizza ovens.
In drinks, we continue to see growth in premium drinks with strong interest in new brands and tastes including non-alcoholic drinks. In our pubs we continue to evolve our drinks offer ensuring we meet the needs of both existing and new customers. We also leverage the benefit of our market leading beer business, offering an outstanding range of traditional and craft beers as described below.
This year, we are targeting service improvements from investment in high-speed broadband and a new EPOS system which will provide us with better customer information, improved service, and improved efficiencies in our pubs. This is expected to contribute to profit improvement from the second half of 2018.
Continuous improvement in each of these areas is an essential component in the perceived value of our offer, and is particularly important against a backdrop of increasing property, people and other costs. The sector is experiencing tighter operating margins, and our strategy has been to focus on improving our offers and to avoid the intense price competition and discounting which characterises much of the market. Our aim is to generate customer visits based on “best experience” rather than “lowest price”.
5. Leadership in the UK beer market.
The UK beer market is evolving with consumers seeking a wider choice of beers with local provenance and taste, including craft beers. The off-trade continues to grow, with the strongest growth in premium bottled ale and craft beer. Non-alcoholic beers are in significant growth from a small base.
We have a wide portfolio of beers which account for 1 in 4 premium bottled ales and around 1 in 4 premium cask ales sold in the UK. The portfolio was enhanced in 2017 by the acquisition of CWBB which included Bombardier, Youngs, McEwans and the Courage brands. Of our volume, premium ales represent 72%, 50% is sold in the off-trade, and 8% is exported. 88% of sales are outside Marston's own pubs.
In April 2018 we were awarded The Best Ale Supplier 2018 in the Morning Advertiser Reader's Choice Awards for the 4th year running.
Our largest brand, Hobgoblin, is the most followed beer brand on social media, recently being awarded Digital and Social Media Campaign of the Year at the PRCA Dare Awards. Hobgoblin has won numerous industry awards, most notably Hobgoblin Gold being awarded gold medals at both the World Beer Awards and International Beer Festival.
We revitalised the Marston's beer brand in 2017 to attract younger consumers under the marketing banner “From Burton with Love”. The success of this initiative is such that both 61 Deep and Pedigree have received industry awards this year and consumer feedback has been strong.
Our commitment to local beers with strong heritage was also recognised with the brewery tours of Wychwood and Ringwood receiving tourist awards in the period.
Collaboration and licensed brands also form part of our portfolio. We own exclusive UK beer licences for Estrella Damm, Shipyard, Warsteiner, Kirin, Erdinger, Krusovice and Founders, as well as Kingstone Press Cider. This portfolio has performed extremely well in the half year and, of particular note, Estrella Damm is the fastest growing premium lager and Shipyard is the number 1 craft beer in the UK.
Our highly experienced brewing and logistics teams continue to operate the business at maximum efficiency and to a high standard with our three largest breweries all BRC “A” rated or above. This enables us to undertake extensive contract services work with customers who recognise the benefits of working in partnership with us, and we constantly pursue additional opportunities. Last year we entered into new agreements to become the exclusive distributor to c.1,600 Punch 'B' pubs, Hawthorn Leisure and Brakspear pubs. We recently announced our intention to invest in a new canning line in Burton which will open up further customer opportunities and reduce our own costs.
6. Our people – 'The Place to Be'.
Marston's employs around 14,500 people and, although many businesses claim that 'people are our most important asset', it is the case that nothing makes a bigger difference to our business than our people.
At Marston's we know that if we develop and inspire our people, they will grow our business. It is their passion for customer service and quality products that makes our business successful – that is why our shared ambition is to keep our people at the heart of all we do.
The key to unlocking the potential of our people is to engage and unite them through our Ways of Working, while also enabling them by providing skills, tools and environments so they can play their part and contribute. As such, we measure both engagement and enablement of our people through our employee survey and whilst our scores are significantly above the comparator group, we continually develop our work in this critical area.
We continue to strive to make Marston's 'The Place to Be' for our existing and prospective employees by providing an experience that is attractive and fulfilling for our people and beneficial for our business.
PERFORMANCE AND FINANCIAL REVIEW
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Underlying revenue |
Underlying operating profit |
Margin |
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2018
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2017
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2018
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2017
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2018
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2017
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£m |
£m |
£m |
£m |
% |
% |
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Destination and Premium |
210.7 |
202.6 |
34.6 |
34.6 |
16.4 |
17.1 |
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Taverns |
121.4 |
118.0 |
24.5 |
24.1 |
20.2 |
20.4 |
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Leased |
26.8 |
25.8 |
14.1 |
13.9 |
52.6 |
53.9 |
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Brewing |
169.2 |
94.4 |
13.4 |
10.4 |
7.9 |
11.0 |
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Group Services |
– |
– |
(12.3) |
(12.0) |
(2.3) |
(2.7) |
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Group |
528.1 |
440.8 |
74.3 |
71.0 |
14.1 |
16.1 |
Destination and Premium
Total revenue increased by 4.0% to £210.7 million reflecting the benefits of our new-build pub-restaurants and bars. Like-for-like sales were 1.8% below last year principally driven by the poor weather in December, February and March. Underlying operating profit of £34.6 million was in line with last year with the benefits of new sites and cost savings offset by the weaker like-for-like sales performance. Profit per pub is down 4% compared to last year.
Reported operating margin of 16.4% is 0.7% below last year. The majority of this was anticipated, reflecting cost increases in labour, business rates and energy costs. In addition, margins were slightly supressed through higher labour percentage costs during the poor weather weeks.
Taverns
Total revenue increased by 2.9% to £121.4 million, principally reflecting an increase of 2.9% in managed and franchise like-for-like sales. Operating profit was up 1.7% on last year reflecting this sales growth. Profit per pub was up 3% on last year.
Operating margin was 0.2% below last year at 20.2%, reflecting anticipated cost increases.
Leased
Total revenue increased by 3.9% to £26.8 million and underlying operating profit of £14.1 million was up 1.4% on last year. The performance of the core estate was strong with rental income up 2%. Operating margin of 52.6% was down 1.3% reflecting a higher mix of drinks sales and the continued shift towards premium products. Profit per pub was up 2% on last year.
Brewing
Total revenue increased by 79.2% to £169.2 million, principally reflecting the acquisition of CWBB in June 2017 and continued growth in ale volumes in the core business excluding CWBB. Underlying operating profit increased by 28.8% to £13.4 million.
Operating margin of 7.9% was below last year reflecting the CWBB business which has historically operated at a lower margin and the impact of the distribution contracts mentioned above.
Taxation
The underlying rate of taxation of 16.8% in 2018 (2017: 18.1%) is below the standard rate of corporation tax due to (i) significant deferred tax movements in the year at the future enacted rate of 17%, and (ii) the deferred tax benefit of property disposals.
Non-underlying items
There is a net non-underlying charge of £43.0 million after tax. This primarily reflects the external estate valuation undertaken in the period, which resulted in a £39.8 million charge to the income statement. A net revaluation increase of £8.6 million has also been recognised in the revaluation reserve in respect of property revaluations undertaken in the period. Other non-underlying items comprise a charge of £0.7 million in respect of the change in the rate assumptions used in calculating our onerous lease provisions, reorganisation and integration costs of £3.6 million, principally from the integration of CWBB, a charge of £0.1 million in respect of the net interest on the net defined benefit pension liability and a £4.1 million loss in respect of the mark-to-market movement in the fair value of certain interest rate swaps. The revenue of £0.9 million and expenses of £2.3 million in respect of the management of the remaining pubs from the portfolio disposal in December 2013 have also been included within non-underlying items. These charges are offset by a credit of £6.7 million relating to the tax on non-underlying items.
Capital expenditure and disposals
Capital expenditure was £83.1 million in the period (2017: £79.7 million), including £37 million on new pubs and bars. We expect that capital expenditure will be around £155 million in 2018, including around £75 million for the construction of 15 pubs and bars and six lodges.
Cash proceeds of £26.3 million have been raised through the disposal of assets, including £18.6 million of leasing transactions. Disposal proceeds of around £45-50 million are anticipated in 2018.
Financing
The Group has a £320 million bank facility to March 2023, with an additional £40 million accordion facility. This facility, together with a long-term securitisation of approximately £791 million and the lease financing arrangements described below, provide us with an appropriate level of financing headroom for the medium term. The Group has sufficient headroom on both the banking and securitisation covenants and also has flexibility to transfer pubs between the banking and securitisation groups.
In recent years, the Group has entered into lease financing arrangements which have a total value of £334 million as at 31 March 2018. This financing is a form of sale and leaseback agreement whereby the freehold reverts to the Group at the end of the term at nil cost, consistent with our preference for predominantly freehold asset tenure. The agreements range from 35 to 40 years and provide the Group with an extended debt maturity profile at attractive rates of interest. Unlike a traditional sale and leaseback, the associated liability is recognised as debt on the balance sheet due to the reversion of the freehold.
Net debt excluding lease financing of £1,059 million at 31 March 2018 is £2 million below last year. Operating cash flow of £63.3 million is 6% ahead of last year reflecting higher profits in the period.
For the period ended 31 March 2018 the ratio of net debt before lease financing to underlying EBITDA was 4.9 times (2017: 5.0 times). On a pro-forma basis (incorporating the post synergy EBITDA from CWBB) the leverage figure is 4.8 times. It remains our intention to reduce this ratio over time, principally through EBITDA growth generated from our new-build investment programme.
Pensions
The deficit on our final salary scheme was £2.0 million at 31 March 2018 which compares to the £5.4 million deficit at last year end. As described above we have concluded our triennial pension valuation to 30 September 2017 which concluded an improvement in the funding deficit.
Independent review report to Marston's PLC
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Marston's PLC's condensed consolidated interim financial statements (the “interim financial statements”) in the Interim Results of Marston's PLC for the 26 week period ended 31 March 2018. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
· the Group balance sheet as at 31 March 2018;
· the Group income statement and Group statement of comprehensive income for the period then ended;
· the Group cash flow statement for the period then ended;
· the Group statement of changes in equity for the period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Results have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRS) as adopted by the European Union.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the Directors
The Interim Results, including the interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express a conclusion on the interim financial statements in the Interim Results based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim Results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
Birmingham
16 May 2018
a) The maintenance and integrity of the Marston's PLC website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the interim financial statements since they were initially presented on the website.
b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Responsibility Statement of the Directors in respect of the Interim Results
The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
· an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
· material related party transactions in the first six months of the financial year and any material changes in the related party transactions described in the last Annual Report and Accounts.
The Directors of Marston's PLC are listed in the Marston's PLC Annual Report and Accounts for 30 September 2017 with the exception of the following changes in the period: Nick Backhouse retired from the Board on 23 January 2018. A list of current Directors is maintained on the Marston's PLC website: www.marstons.co.uk.