(Alliance News) - Marston's PLC on Tuesday said it thinks "the worst of the pandemic is now behind us", as the pub chain halved its annual loss and said Christmas bookings this year are level with 2019.
Marston's said its pretax loss narrowed to GBP171.1 million from GBP388.7 million in the financial year that ended October 2.
The Wolverhampton, Midlands-based pub and hotel operator said revenue from continuing operations fell by 22% to GBP401.7 million from GBP515.5 million, but it cut operating expenses by even more, by 39% to GBP492.2 million from GBP801.0 million.
Marston's pubs were open for just over half of the total trading days in the recent financial year, due to UK government restrictions aimed at containing Covid-19.
Given the significant disruption to trading over the course of the year and the potential for continuing uncertainty, Marston's said it has decided not to pay dividends this financial year. This is the second year Marston's has decided to skip payouts.
Marston's said current trading is encouraging, with total like-for-like sales growth of 1.3% versus 2019 despite a reduction in value-added tax relief in the UK.
Christmas bookings are in line with 2019, and the company said it has long-term contracts in place to manage 2022 inflation headwinds.
"Looking forward, we believe the worst of the pandemic is now behind us, albeit we will have to navigate through the coming winter months if any further government restrictions are put in place," Marston's said.
"Marston's enters the year ahead as a focused pub business with a clear strategic plan, a profitable and cash generative business, a strong balance sheet and a 40% share in CMBC, our partnership with Carlsberg, which has such exciting potential. Our debt reduction plans remain on track and our well-invested, predominantly freehold, suburban pub estate is well placed to benefit from many of the positive consumer dynamics and drivers post pandemic. Whilst still early days, Christmas bookings look encouraging and we look to the future with renewed optimism," Chief Executive Andrew Andrea commented.
Back in 2020, Marston's and the UK arm of Danish brewer Carlsberg AS formed the Carlsberg Marston's Beer Co joint venture, separating Marston's brewing interests from its hospitality chain.
Shares in Marston's were down 4.7% at 66.25 pence on Tuesday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Marstons (MARS)