15th Oct 2020 10:50
(Alliance News) -Â Marston's PLC on Thursday warned of job cuts as it blasted "hugely disappointing" UK government restrictions on pubs.
Shares in Marston's were down 7.8% at 41.36 pence in London on Thursday.
The pub firm said sales for the year to October 3 were GBP821 million, 30% below last year. Total pub sales were GBP515 million, down 34%. In Marston's Beer Company, sales for the year were GBP306 million, 22% below last year.
Marston's noted that pubs and restaurants were forced to close for 15 weeks over late March to early July due to Covid-19 lockdown restrictions, which had a "material impact" on its results.
In the 13 weeks since re-opening, like-for-like sales are down 10%, with sales falling 26% in July, picking up to post 6% growth in August but then falling 12% in September.
The firm said consumer confidence increased steadily throughout July, August and into September - bolstered by reduced valued added tax on sales of food and non-alcoholic drinks, the Eat Out To Help Out scheme and good weather - though additional restrictions were introduced in September and October, including curfews, full table service and a requirement for face masks to be worn by guests and employees.
Mostly recently, the government has introduced a three-tier system of alert levels for England. The Liverpool city region is already under the most serious "very high" risk category - which means, at a minimum, the closure of pubs and bars and a ban on social mixing indoors and in private gardens.
Marston's said it has 18 pubs in the "highest risk" Liverpool region, the majority of which serve food and under the existing guidelines are capable of remaining open.
"The initial effect of these new rules has been to undermine consumer confidence and create uncertainty. Restoring confidence will only happen when UK government and the devolved administrations are able to remove these restrictive measures, which they state are intended to be short term in nature," said Marston's.
The introduction of these further restrictions and guidance affecting pubs is "hugely disappointing", it continued, adding that "very few" incidences of Covid-19 infection have been reported in its pubs by employees or guests to date.
"Inevitably, and regrettably, recent restrictions will impact jobs," said Marston's.
It has "reluctantly concluded" that around 2,150 pub-based roles currently subject to furlough are going to be impacted.
Chief Executive Ralph Findlay said: "The additional restrictions which have been applied across the UK most recently present significant challenges to us and will make business more difficult for a period of time. I very much regret that the consequence of this is that the jobs of around 2,150 of our colleagues will be impacted, but it is an inevitable consequence of the limitations placed upon our business. We will be looking at our cost base further in the coming weeks."
By Lucy Heming;Â [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Marstons