9th Oct 2013 08:29
LONDON (Alliance News) - British brewer and pub operator Marston's PLC Wednesday said that it has seen an encouraging trading performance in the second half of the year, after poor weather conditions knocked trading in the first half.
In its year-end trading statement, before releasing its full year result on November 28, the Wolverhampton-based brewer said that in has seen an improved performance in the second half, after a challenging first half of the year.
In destination and premium pubs, the group said that like-for-like sales were 2.2% higher than last year, including like-for-like food sales growth of 3.7% and like-for-like drinks sales growth of 0.2%. Marston's said that like-for-like sales in the category have grown by 2.6% over the last 11 weeks, and that it expects the division's full-year operating margin to be slightly ahead of next year.
Marston's said that its managed and franchised pubs saw like-for like sales in line with last year, but up 2% in the second half of the year.
However, the group said that it expects its full-year profits to be lower in its Taverns community pubs, due to poor weather in the first half of the year, more disposals than originally planned, and a more subdued performance in its tenanted pubs, in line with market trends.
Full-year profits for its leased pubs are expected to be in line with last year, Marston's said, with an improved performance in the second half year.
Marston's said that it opened 22 new pub-restaurants during the year, and is now targeting between 25 and 30 openings over the next few years.
The brewer said that it disposed of 130 pubs and other assets during the year, which generated higher proceeds than expected, of around GBP50 million. It said that it is aiming to achieve disposal proceeds of between GBP60 and GBP70 million for financial year 2014, mainly from the its Taverns estate.
"The performance of our new-build pubs is very strong. We have developed plans to accelerate the programme and intend to dispose more aggressively of lower-end pubs in order to pursue our key objectives of sustainable growth, improving returns and reducing leverage over time," Chief Executive Officer Ralph Findlay said in a statement.
Marston's shares were up 1.4% Wednesday morning, trading at 143.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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