9 Oct 2013 07:00

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9 October 2013
MARSTON'S PLC
YEAR-END TRADING STATEMENT
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Marston's PLC issues the following update on trading for the year ended 5 October 2013. The preliminary results will be announced on 28 November 2013.
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Trading
Our performance for the second half-year has been encouraging, with good weather over the summer balancing poor weather during the first half-year.
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In Destination and Premium pubs, like-for-like sales were 2.2% ahead of last year including like-for-like food sales growth of 3.7% and wet like-for-like sales growth of 0.2%. Over the last 11 weeks like-for-like sales have grown by 2.6%. Operating margins are expected to be slightly ahead of last year.
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In our Taverns community pubs, profits for the full year are expected to be behind last year due to poor weather in the first half-year, a greater than anticipated level of disposals and a more subdued performance in our tenanted pubs in line with market trends. The performance of our managed and franchised pubs has been robust with like-for-like sales in line with last year and up 2% in the second half-year.
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In our Leased pubs, profit for the year is expected to be in line with last year, with an improved performance in the second half year.
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In Brewing, our own-brewed beer volumes are 6% higher than last year, outperforming an ale market down 3%. Premium cask ale volumes were up 4% in the year and bottled ale was up 19%. We continue to lead the market in both of these segments.
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Estate Development
We are focussing on significantly improving the quality of our pub estate appropriate for both current and future consumer needs.
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We completed 22 new pub-restaurants in the year with returns remaining strong. Over the last five years our national new-build pub programme has proven highly successful, generating strong returns and improving the quality of our pub estate. The 2012 estate valuation also indicated that the new-build pubs were valued at 50% above build cost, generating significant value to our shareholders.
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As a result of this success we propose to accelerate the new-build programme and are targeting 25-30 openings over the next few years, with a visible pipeline of sites to 2017.
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We have disposed of 130 pubs and other assets in the year generating proceeds of around £50 million, higher than we originally anticipated. A more aggressive churn of the estate will improve returns over time, assist the funding of the new-build programme and reduce our exposure to the tenanted sector. We aim to achieve disposal proceeds of £60-70 million for financial year 2014, principally from the Taverns estate.
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Commenting, Ralph Findlay, Chief Executive, said:
"We are encouraged by our performance in the second-half year after challenging weather in the first half.
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The performance of our new-build pubs is very strong. We have developed plans to accelerate the programme and intend to dispose more aggressively of lower-end pubs in order to pursue our key objectives of sustainable growth, improving returns and reducing leverage over time.
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We are confident that we are significantly improving the quality of our pub estate for both today's and tomorrow's consumer."
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ENQUIRIES:
Marston's PLC | Hudson Sandler |
Ralph Findlay, Chief Executive Officer | Andrew Hayes / Kate Hoare |
Andrew Andrea, Chief Financial Officer | |
Tel: 01902 329516 | Tel: 020 7796 4133 |
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NOTES TO EDITORS
â—‹ | Marston's is a leading pub operator and independent brewer. |
â—‹ | It has an estate of around 2,050 pubs situated nationally; comprising tenanted, leased, franchised and managed pubs. |
â—‹ | It is the UK's leading brewer of premium cask and bottled ales, including Marston's Pedigree and Hobgoblin. The beer portfolio also includes Banks's, Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers. |
â—‹ | Marston's employs over 12,000 people throughout England and Wales. Â Â Â Â Â Â |
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