22nd Jul 2015 07:07
LONDON (Alliance News) - Marston's PLC, which runs pubs and brews beer, Wednesday said wage costs will be "moderately greater" than it had expected in the wake of the UK government's move to introduce a compulsory national living wage of GBP9 per hour by 2020.
The company said the higher costs from increased costs of paying staff is mitigated by the fact it had expected increased above the rate of inflation, as well as the government's simultaneous move to cut corporation tax to 18% by 2020 from the current 20% rate.
"Our view remains that government should prioritise taxation and business rate reductions to reduce the cost of doing business and increase consumer confidence," Marston's said in a statement.
Marston's said it made "profitable progress" in line with its expectations in the 41 weeks to July 18.
It said that Destination pubs, where customers tend to eat, like-for-like sales were 1.7% ahead of the same period in the prior year.
Taverns like-for-like sales were also 1.7% ahead of the prior year, and 2.0% ahead for the last 10 weeks of the period.
Profit in leased is estimated to be in line with the prior year, the company said.
Own-brewed beer volumes, excluding Thwaites, the brewing business it acquired for GBP25.1 million in March, were up around 4% on the prior year period, and 10% when including it.
Marston's shares were up 0.4% to 155.7 pence just after the open on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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