3rd Apr 2008 07:00
Marston's PLC03 April 2008 3 April 2008 Marston's PLC Pre-Close Trading Statement The Board of Marston's PLC issues the following trading update following the endof the first half of the current financial year on 29 March 2008. Trading In Marston's Inns & Taverns, our managed pub division, like-for-like sales forthe 24 weeks to 15 March 2008* were 0.3% above last year against strongcomparatives, with reported like-for-like sales growth of 7.0% for the sameperiod last year. Food sales have continued to show excellent like-for-likesales growth of 7.8% in the same 24 week period, although higher margin wetsales and machine income were 3.1% and 10.3% below last year respectively. Ournew build programme continues to generate attractive returns with 8 new pubsopened in the first half-year, and we expect to open a further 12 in the secondhalf-year. In Marston's Pub Company, our tenanted and leased pub division, like-for-likeprofit was slightly below last year in the period with growth in rental incomeoffset by volumes and machine income in line with market trends. In Marston's Beer Company, whilst overall volumes remain below last year we haveincreased market share with continued good performance in the premium alesegment. 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. In our interim results statement due to be issued on 23 May 2008 we expect toreport Group sales up by around 4% compared to last year for the 26 week period,reflecting the acquisitions of Sovereign Inns, Eldridge Pope and RingwoodBrewery in 2007. Operating profit (before interest and taxation) is expected tobe in line with last year, although profit before taxation will reflect thehigher interest costs associated with the £150 million share buy-back programmein 2007. Earnings per share will also reflect the related reduction of around9.5% in the average number of shares in issue and an expected lower underlyingrate of taxation. Underlying cash generation remains strong with net debtestimated to be approximately £1.27 billion at the half year-end. Outlook We remain cautious about the outlook for 2008, and the recent increase in beerduty adds to the pressures on tenants and free trade operators in an alreadychallenging trading environment. However with our high quality pub estate and our continuing investment innew-build pubs, we are well positioned to exploit favourable trends includingmarket growth in casual dining, and our value for money offers and mid-marketposition are well suited to the current economic climate. Notwithstanding thecurrent testing market conditions our expectations for the financial year as awhole remain unchanged. * In 2007 Easter fell in the second half-year. Like-for-like sales are reportedfor the 24 week period in order to be on a comparable basis to last year. ENQUIRIES:Marston's, PLC Hudson SandlerRalph Findlay, Chief Executive Andrew HayesPaul Inglett, Finance Director Nick LyonTel: 01902 329516 James White Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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