Marston's Plc – Preliminary Results For The 52 Weeks Ended 30 September 2017

–  Profit growth in all trading segments

–  Operating cash flow up 17% to £213.6 million, offset by initial working capital impact from Charles Wells Beer Business (“CWBB”)

–  Pro-forma leverage down 0.1x to 4.7x, fixed charge cover unchanged at 2.6x

–  Return on capital of 10.7%, 94% freehold asset base, NAV 147p per share

·     Improving quality of pub estate

–  Average profit per pub up 2%

–  19 pubs and bars opened, 9 pubs and bars acquired

–  Eight lodges opened, taking estate to over 1,250 rooms

·      Market-leading beer business continues to demonstrate growth

–  Acquisition of CWBB

–  Strong brand portfolio continues to outperform market

–  Further market share growth, with 21% share of premium packaged ale and 20% share of premium cask ale

–  Supply chain expertise secures three significant distribution contracts with Punch B, Hawthorn Leisure and Brakspear, totalling c.1,700 pubs

·     Final dividend up 0.1p to 4.8p per share; full year dividends up 2.7% to 7.5p per share.            Dividend cover maintained at 1.9x.
 

·     Well positioned for growth in 2018

–  Like-for-like sales growth in pub estate in first seven weeks of period

–  Target to open 15 pubs and bars and 6 lodges in the coming year including our largest 100+ room lodge to date in Ebbsfleet

–  Integration of CWBB  going well and synergies on track

Commenting, Ralph Findlay, CEO said:

“We have achieved strong revenue growth and higher earnings, despite increasing employment and property costs.  Our business has been transformed in recent years with a significant improvement in the quality of both our pub and beer businesses.  While political and economic uncertainty is likely to continue, we remain confident that our proposition founded on providing great customer experiences, the very best service and value for money, leaves Marston’s positioned to deliver further growth in the year ahead.”