25th Jan 2008 07:01
Marston's PLC25 January 2008 25th January 2008 MARSTON'S PLC ('Marston's') AGM AND INTERIM MANAGEMENT STATEMENT 16 weeks to 19 January 2008 Marston's PLC issues the following Interim Management Statement in advance ofthe Company's Annual General Meeting to be held at 12 noon today. Trading Group sales were 7.9% ahead of last year for the 16 week period reflecting theacquisitions of Sovereign Inns, Eldridge Pope and Ringwood Brewery in 2007. In Marston's Inns & Taverns, our managed pub division, like-for-like salesincreased by 1.0% for the 16 week period to 19 January 2008 against strongcomparatives with reported like-for-like sales growth of 7.0% for the sameperiod last year. In the last 8 weeks to 19 January 2008 like-for-like saleswere 0.1% ahead of last year. Food sales have continued to show excellentlike-for-like sales growth of 9.5%, although higher margin wet sales and machineincome were 2.6% and 9.8% below last year respectively. In Marston's Pub Company, our tenanted and leased pub division, like-for-likeprofit was 0.6% below last year in the period with growth in rental incomeoffset by weak volumes and machine income in line with market trends. In Marston's Beer Company overall volumes are below last year. However we havecontinued to increase market share in a weak beer market with regional premiumales from the Jennings and Ringwood breweries showing good growth. This summerwe aim to build on our successful association with cricket in England and Walesthrough becoming the Official Beer of the Twenty20 Cup. Costs across the Group have been well controlled notwithstanding inflationarypressures in brewing and food purchasing, but the changes in sales mix describedabove will continue to have an impact on operating margins. Financing and cash flow Net debt and cash flow are in line with our expectations. We announced on 19November 2007 the terms of a £330 million tap of our securitisation whichcompleted on 22 November 2007. Following this refinancing nearly all of ourborrowings are at effectively fixed rates with a blended cost of debt ofapproximately 6.1%. Since 30 September 2007 we have purchased 8.7 million shares at a total cost ofaround £29 million, meeting our stated target of returning £150 million toshareholders in the 2007 calendar year. The Board Peter Lipscomb will retire from the Board following this Annual General Meeting,and we thank him for the significant contribution he has made to the developmentof the Company since he joined in 2000. On 21 January 2008 we announced theappointment of Neil Goulden, Chief Executive of The Gala Coral Group, as aNon-Executive Director from 31 March 2008 and we look forward to welcoming himto the Board. Outlook We remain cautious about the outlook for 2008 as a consequence of the smokingban, weaker consumer confidence and pressures on costs and margins. However, ourhigh quality pub estate is well positioned to exploit favourable market trendsincluding the growth in casual dining. Our value for money offers andmid-market position are appropriate for the current economic climate. Ralph Findlay, Chief Executive, commented as follows: "Marston's has a clear strategy for growth and a strong balance sheet supportedby a substantially freehold pub estate which provides us with significantoperational and financial flexibility. We are working hard to reduce the impactof rising costs while supporting tenants and lessees in this challenging market.Our new build pub programme is on track and our pub estate is well positionedfor the current economic climate and for longer term market trends." The next report to shareholders will be on 23 May when Marston's issues itsinterim results for the 26 weeks to 29 March 2008. An Interim ManagementStatement will be issued in early July followed by a pre-close trading update inearly October in respect of the 53 week period to 4 October 2008. There will be a conference call for analysts and investors at 8.30am today. Toaccess the call, please contact James White at Hudson Sandler on +44 (0) 207 7964133. ENQUIRIES: Marston's PLC Hudson SandlerRalph Findlay, Chief Executive Andrew Hayes / Nick LyonPaul Inglett, Finance Director Tel: 01902 329516 Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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