14th Oct 2015 07:29
LONDON (Alliance News) - Marston's PLC Wednesday said it made good progress in its recently-ended financial year with underlying pretax profit in line with expectations.
The pub operator and brewer, which brews Pedigree and Hobgoblin ale and which recently acquired Thwaites' beer division, including the Lancaster Bomber and Wainwright brands, reported a rise in like-for-like sales in each of its divisions. Marston's financial year ended on October 3.
Like-for-like revenue grew 1.8% year-on-year in Destination and Premium, with operating margins ahead of the prior year and the completion of 25 new pub-restaurants.
In Taverns, like-for-like sales increased 2.0% year-on-year as its franchise business continued to perform strongly, while like-for-like profit is estimated to be up 4% in the Leased division.
Meanwhile, the Brewing division also performed well, supplemented by the Thwaites acquisition. Excluding Thwaites, own brand beer volumes were up 5% year-on-year, and including Thwaites were up 15%.
Marston's added that it has agreed a reduction in cash contributions to GBP7.5 million per year from GBP13 million following the triennial valuation of its pension scheme for the period ended September 30, 2014.
"The group has made good progress in the last year, with underlying growth in all of the business segments. Our new pub-restaurants, premium pubs and lodges have all performed well and we have good visibility over the site pipeline to underpin our future growth. In addition, we have substantially completed our disposal programme of smaller wet-led pubs. These actions, together with the success of franchise, have significantly transformed our pub business over the last three years," Chief Executive Ralph Findlay said in a statement.
"In brewing, the integration of the Thwaites' brewing business has gone well, and we are well placed to continue to exploit the market growth in premium and craft beers and ongoing growth in the off-trade," he added.
Shares in Marston's were trading down 0.1% at 153.18 pence early Wednesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Marstons