14th May 2015 07:37
LONDON (Alliance News) - Marston's PLC Thursday reported a narrowed pretax loss in the first half of its financial year, as sales improved and it disposed of 65 pubs, but still booked charges relating to an estate valuation and interest rate swaps.
The pub operator and brewer reported a narrowed pretax loss of GBP27.5 million in the 26 weeks to April 4, an improvement on the GBP54.8 million loss made in the same period a year earlier, as revenue increased to GBP400.5 million from GBP384.5 million.
Profit was largely hit by a GBP39 million charge from an external estate valuation, a GBP8.6 million loss relating to interest rate swaps, and disposal costs of around GBP3 million, but was also helped by proceeds of GBP26.4 million from the disposal of the 65 pubs, Marston's said.
It added that the increase in revenue was driven by the contribution from new pub-restaurants, solid like-for-like sales growth, and growth in brewing.
Marston's will pay an interim dividend of 2.5 pence, up 4% on the prior year.
Since the period-end Marston's acquired Thwaites' beer division, including the Lancaster Bomber and Wainwright brands, for GBP25.1 million.
It said like-for-like sales in its managed pubs and taverns were up 2% and 2.8%, respectively, in the five weeks to May 9, adding that leased profits and own-brewed volumes are in line with expectations.
"Profits have increased in each of our trading segments, excluding the impact of disposals, and we remain on track to complete 25 new-builds this year with excellent visibility on our site pipeline in 2015 and 2016. We are also seeing good opportunities to expand our premium estate, Pitcher & Piano and Revere, and invest further in pubs with accommodation," Chief Executive Ralph Findlay said in a statement.
"We expect to complete the majority of our disposals programme this year and our momentum gives us confidence of achieving further progress in the future," Findlay added.
Shares in Marston's were trading down 0.1% at 163.30 pence early Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Marstons