Marston's PLC - Wolverhampton, Midlands-based pub and hotel operator - Pretax loss widens to GBP43.5 million in the 26 weeks that ended March 30 from GBP38.1 million a year before, despite a 5.2% rise in revenue to GBP428.1 million from GBP407.0 million. Pub operating profit increases by 22% and net finance costs are reduced, but Marston's takes a GBP16.6 million loss from associates, swung from a GBP2.2 million gain a year before. This relates to an ale brand impairment and onerous contract provision at beer joint venture Carlsberg Marston's Brewing Co.
Declares no interim dividend, citing the priority to reduce debt. This stands at GBP1.16 billion on March 30, down from GBP1.19 billion a year before. Marston's has paid no dividend since the Covid-19 pandemic in 2020.
More positively, Marston's says the second half of the financial year has been "encouraging", with a 4.0% annual increase in like-for-like sales in the past six weeks, or 5.3% if excluding the impact of the extra May bank holiday in 2023. Like-for-like sales were up 7.3% in the first half.
Current stock price: 31.69 pence, down 6.1% in London on Tuesday
12-month change: down 15%
By Tom Waite, Alliance News editor
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Marstons (MARS)