Marston's in double-digit profit and revenue growth

18 May 2016 by Neil Gerrard

Pub company Marston's has reported double-digit increases in both revenue and pre-tax profit for the first half of its financial year.

Underlying group revenue was up 11.5% to £428.7m for the 26 weeks to 2 April 2016, while underlying profit before tax also rose by 11.8% to £33.1m.

Marston's, which owns 1,600 sites across the country in a mix of managed, franchised and leased pubs, as well as a brewing business, said there was profit growth in all trading segments.

Like-for-like sales across its managed and leased pubs grew by 3%, while it saw underlying operating profit growth of 16% driven by its acquisition of Thwaites.

Chief executive Ralph Findlay said: "We are encouraged by our first half performance and are on track to meet our expectations for the year. In pubs, we have driven our growth by the organic development of pub-restaurants and franchise-style pubs, and more recently through investment in lodges and premium bars, widening our appeal.

"In Brewing, we had an excellent first half year and achieved good growth through our industry-leading brands and service."

The firm also highlighted two pieces of Government legislation coming into effect in the second half of its financial year.

It said that the planned introduction of the Pubs Code would impact the tenanted and leased pub sector.

But it added: "Marston's Leased pubs generate approximately 15% of our total pub profits, and we are therefore not materially exposed to potential adverse consequences of the legislation."

Meanwhile, the National Living Wage was introduced on 1 April this year and Marston's said it would increase staff costs in pubs.

"We had anticipated that staff costs would increase over time, and that the Minimum Wage and Living Wage would converge, so the impact over and above our existing forecasts was relatively modest. We have no plans to review other staff benefits as a consequence of the introduction of the Living Wage," it said.

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