13th Oct 2021 11:21
(Alliance News) - Marston's PLC said Wednesday it has seen trading improve since Covid-19 restrictions were lifted on pubs in England in April, rebounding above levels seen before the pandemic struck.
Overall, trading since April 12 has been at 94% of 2019 levels which includes the benefit of the temporary VAT reduction on food and non-alcoholic drink sales, the Wolverhampton-based pub chain said.
For the most recent quarter, from July 25 to October 2, Marston's saw a return to growth over 2019, with sales 2% higher across its managed and franchised pubs.
"The group's balanced estate, largely comprising community pubs nationwide with limited exposure to London and city centres, have supported this rapid return to above pre-pandemic levels. In addition, trading has been stronger in our premium pubs over the period. Accommodation sales have been excellent benefiting from the growth in staycation holidays," Marston's explained.
Total pub sales were GBP402 million for the year, down 22% on last year, which was attributed to the "significant" disruption to trading from the pandemic.
Marston's continued: "It has been well publicised that the wider industry is facing challenges in respect of staff recruitment and cost inflation, alongside supply issues. Whilst the labour market remains tight, particularly in city centres, we are currently managing this well."
It added that it has seen some "small pockets" of disruption from the wider supply chain issues, but is "working closely with our suppliers to manage this".
Marston's said it is also managing "well" the more difficult recruitment market and cost inflation, with wages increased as expected in line with the national minimum wage and energy costs fixed for at least the next five months.
Chief Executive Andrew Andrea added: "We are delighted to be fully open again since trading restrictions were lifted in July. We are encouraged by the trading momentum which we have experienced since April and pleased to be trading robustly and above 2019 levels again.
"Our business benefits from an optimally balanced pub estate of food and wet led pubs that are predominately suburban, community based and well located for the changes in consumer behaviour that we are seeing. However, we are mindful of consumer confidence in the short term and the challenges impacting the economy and our industry. Government messaging will remain a key factor in determining sentiment."
Shares in Marston's were 0.5% higher in London on Wednesday at 73.24 pence each.
By Paul McGowan; [email protected]
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