(Alliance News) - Marston's PLC on Tuesday gave an upbeat trading outlook ahead of Christmas despite an annual swing to a loss which saw costs outpace revenue growth.
The Wolverhampton, England-based operator of 1,440 pubs said it turned to a pretax loss of GBP20.7 million in the financial year ended September 30, from a profit of GBP163.4 million a year prior.
Revenue in financial 2023 however grew 9.1% to GBP872.3 million from GBP799.6 million. The company cited higher costs for the swing to loss despite revenue growth. Notably, the cost of reversal past of revaluation surplus ballooned to GBP93.9 million from GBP34.3 million. On top of that, in financial 2023 it incurred a loss of GBP3.0 million from cash flow hedges, compared to a gain of GBP23.9 million in financial 2022.
The company declared no dividend, unchanged from 2022.
Looking ahead, the company said: "We have taken cost actions to improve the resilience of the business model and improve profitability for the coming year."
Further, Marston's said current trading was positive, with like-for-like sales 7.4% higher than a year prior, with Christmas bookings "tracking well ahead of last year."
It said: "We have fixed our energy costs for FY2024 and have secured a significant proportion of our food and drink costs for the year, providing us with a high degree of confidence for the next financial year."
Marston's added: "An improving outlook in which cost headwinds are abating, together with the actions we have taken this year to drive further efficiencies, leaves us confident that Marston's remains well-placed to continue to outperform in the current macroeconomic environment, grow revenue and profitability, as well as deliver improved margin in the year ahead."
Marston's shares fell 1.1% to 30.62 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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Marstons (MARS)