21st Nov 2018 09:48
LONDON (Alliance News) - Marston's PLC on Wednesday reported a drop in its annual profit dragged by losses on property revaluations, but expressed confidence in its business as like-for-like sales rose.
For the year ended September 29, the pub operator's pretax profit came in at GBP54.3 million, down 46% year-on-year from GBP100.3 million, reflecting the non-cash negative estate revaluation, leading to a GBP39.8 million charge.
On an adjusted basis, excluding the revaluation hit and other one-off charges, pretax profit increased 4% to GBP104.0 million.
Meanwhile, revenue increased 13% to GBP1.14 billion, like-for-like sales were up 0.6%, with wet-led pubs - meaning drinks - outperforming food-led pubs.
Chief Executive Officer Ralph Findlay said: "Marston's has performed well in a difficult market. Our balanced business model has stood us in good stead, delivering record sales and underlying profits with revenue exceeding GBP1.1 billion for the first time.
"Our Taverns wet-led community pubs and market-leading brewing business had an outstanding year, more than offsetting the effects of weather volatility and the World Cup on our food-led pubs."
The company held its final dividend at 4.8 pence per share, for a full-year payout of 7.5p.
Looking ahead, the company reported solid trading in line with its expectations after the first seven weeks of the new financial year.
In a move towards a more "prudent approach", Marston's is targeting GBP30 million of capex reduction and GBP20 million to GBP30 million of cash savings through reduction in pension contributions, and refinancing opportunities.
"Macro-economic and political uncertainty is reflected in our capital plans this year. However, the outlook for good pubs and brewing remains attractive, and Marston's is well placed to leverage the opportunity this presents with our high quality, well invested estate, leading brands and great people. We expect to make positive progress once again in the current financial year," Findlay added.
Marston's shares were trading down 1.5% at 96.98 pence each.
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