16th Oct 2024 11:09
(Alliance News) - Marston's PLC on Wednesday announced that it expects revenue growth "ahead of the market", as it prepared to present an updated strategy ahead of its Capital Markets Day.
The Wolverhampton-based based pub operator said its new strategy "will drive a high-margin, highly cash-generative local pub company based on differentiated formats, and a brand portfolio that is naturally balanced to appeal across a range of consumer segments".
The strategy's five "key value drivers" include Marston's digital transformation; targeted investments to create five differentiated pub formats; and leveraging its targeted mergers & acquisitions synergies.
Marston's said this new strategy "will ensure we drive guest demand and deliver amazing pub experiences whilst maintaining our focus on best-in-class operations and cost efficiencies to expand the group's profitability and cash generation profile".
"Marston's is embarking on a new and exciting chapter as a pure play hospitality business," commented Chief Executive Justin Platt. "At today's CMD we are outlining a differentiated strategy for growth that is anchored in the needs of our guests and focused on driving sustained value for our shareholders."
Consequently, Marston's said it expects to deliver revenue growth ahead of the market in the near-to-medium-term future.
Marston's also anticipates an earnings before interest, tax, depreciation & amortisation margin expansion between 200 and 300 basis points; a return on invested capital exceeding 30%; and over GBP50 million in recurring free cash flow.
Marston's said these targets are underpinned by its strong balance sheet and disciplined capital allocation framework.
"With a relentless focus on delivering amazing pub experiences, Marston's has a real opportunity to drive significant, incremental value in the coming years," CEO Platt said. "We are very excited by the opportunities that lie ahead."
Shares in Marston's were up 0.8% at 42.55 pence in London late on Wednesday morning.
By Emma Curzon, Alliance News reporter
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