PRELIMINARY RESULTS

25 November 2025

MARSTON'S PLC

("Marston's" or "the Group")

PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 27 SEPTEMBER 2025

A YEAR OF STRONG DELIVERY, AHEAD OF PLAN: SIGNIFICANT PROFIT GROWTH, MARGIN EXPANSION, FREE CASH FLOW ABOVE TARGET AND RECORD GUEST SATISFACTION

Marston's, a leading UK hospitality business with an estate of more than 1,300 pubs, today announces its Preliminary Results for the 52 weeks ended 27 September 2025.

Step-change in profitability

• Total revenue of £897.9 million (2024: £898.6 million), with like-for-like (LFL) growth, format roll-out and revenue management initiatives offsetting impact of c. £50 million of pub disposals in the prior period

• LFL sales rose 1.6% (2024: 4.8%), ahead of the market, with, food, drink and machines all in growth3

• Underlying EBITDA margin up to 22.8% (2024: 21.4%), reflecting the strength of our market-leading pub operating model and strategic cost management including improvements to labour efficiency, procurement gains and energy management

• Underlying profit before tax up 71.3% to £72.1 million (2024: £42.1 million), marking the second consecutive year of significant profit growth driven by our progress on LFL sales, contribution from new formats, disciplined cost control, and reduced interest costs

Clear progress on recurring free cash flow and debt reduction

• Recurring free cash flow of £53.2 million (2024: £43.6 million), ahead of £50 million Capital Markets Day (CMD) target, delivered ahead of schedule and providing confidence in the Group's ability to sustainably deliver significant levels of recurring free cash flow

• Capital investment of £61.2 million (2024: £46.2 million), including expansionary capital of £8.0 million, reflecting the first year of investment into the new pub formats and wider estate upgrades

• Net debt excluding IFRS 16 lease liabilities reduced to £837.5 million (2024: £883.7 million), down nearly one-third since FY2022 and underpinned by a predominantly freehold estate now valued at £2.2 billion (2024: £2.1 billion)

• Leverage ratio (pre-IFRS 16) reduced to 4.6x (2024: 5.2x); the Group remains committed to reducing leverage to less than 4.0x and expects to recommence shareholder returns at this point

• NAV per share increased to £1.25 (2024: £1.03), underpinned by improvement in profitability, estate revaluation and deleveraging

Strong strategic and operational delivery underpinning financial performance

• Record Reputation score of 816, up from 800 in the prior period, reflecting consistently high guest satisfaction and a continued focus on delivering excellent experiences across the estate

• 31 format conversions completed during FY2025, delivered on time and within budget, with exceptional guest feedback. Average revenue uplifts of 23% and return on invested capital of over 30%

• Demand-driving event programme supporting engagement and footfall, with highlights including Trivial Pursuit 'Win a Wedge', Pub Life, Paddington in Peru and the Cool Hand Cup darts tournament

• Enhanced Order & Pay platform now live across the entire managed estate, supporting a 10% increase in spend per guest and improving operational efficiency

• 'Right People, Right Time' labour model offsetting National Insurance and minimum wage increases, demonstrating ability to absorb external cost pressures and protect margins; with further opportunity ahead

Outlook

• LFL sales for the 8 weeks to 22 November are tracking in line with the prior year

• Christmas bookings are strong, 11% ahead of the same point last year. The Group is well positioned for a strong festive period and FY2026, supported by ongoing format conversions and a robust calendar of demand-driving events, including the 2026 World Cup

• The roll-out of our pub formats is building momentum, and we plan to accelerate this growth engine this year with at least 50 new format launches. Capex spend will remain in line with CMD guidelines of 7-8% of total revenue

• Cost pressures remain manageable within the context of our ongoing efficiency programme, we expect to deliver further margin uplifts in the year ahead given current cost visibility

• The Board remains focused on delivering long-term shareholder value through disciplined investment and deleveraging; shareholder returns are expected to commence once leverage reduces below 4.0x

• Remain firmly on track to deliver further strategic progress and achieve the targets set out at the CMD

Justin Platt, CEO of Marston's PLC, commented:

"We've delivered another strong year ahead of plan, executing on our strategy to be a high-margin, highly cash-generative local pub company. For the second consecutive year, we've delivered significant growth in profit, margin and free cash flow, underlining the strength of our market-leading pub operating model and the outstanding work of our teams.

Guest satisfaction has reached record levels - a fantastic endorsement of the passion and dedication of our people and the quality and consistency they deliver every day. Our new pub formats are performing exceptionally well, clearly demonstrating the growth opportunity ahead and giving us real conviction to scale further.

"We enter 2026 with significant momentum and confidence in our ability to keep driving growth, while delivering great experiences for our guests and creating sustainable value for our shareholders."

Results Call:

An analyst and investor presentation will be held on 25 November 2025 at 10.00am UK time. Participants need to register using this link: https://brrmedia.news/MARS_FY_25

A full playback of the presentation will be made available shortly after its conclusion on the Marston's Investor Relations website: https://www.marstonspubs.co.uk/investors/results-presentations/

Enquiries:

Investors

Marston's PLC

Justin Platt, CEO Tel: 01902 329516

Stephen Hopson, CFO

Matthew Lee, Investor Relations [email protected]

Media

Marston's PLC

Giles Robinson, Director of Corporate Affairs [email protected]

Sodali & Co

Ben Foster Tel: 020 7250 1446

Russ Lynch

Oliver Banks [email protected]

Notes

1. Results from continuing operations.

2. Alternative Performance Measure. See from page 26 for reconciliation to GAAP.

3. CGA RSM Hospitality Business Tracker - total market. Like-for-like sales means sales for the Group's managed and partnership pubs, including food, drink, accommodation and gaming machine income, considered on a daily basis where the pub was trading in both the current and prior period. 

Notes to Editors

Marston's PLC, listed on the London Stock Exchange under the ticker MARS, is a leading UK hospitality business with an estate of more than 1,300 pubs nationally, comprising managed, partnership ('franchised') and tenanted and leased pubs. Marston's employs around 9,000 people.

More information is available at https://www.marstonspubs.co.uk/

The Group uses a number of alternative performance measures (APMs) to enable management and users of the financial statements to better understand elements of financial performance in the period. APMs are explained and reconciled in the appendix to the financial statements.

CEO Statement

FY2025 has been a year of strong delivery for Marston's as we continued to focus on being the UK's leading local pub company. We have seen encouraging results across the board - from improved profitability and margin expansion to record guest satisfaction and recurring free cash flow ahead of our target. With strong momentum, a high-margin platform, and our formats growth engine poised to deliver, we are well positioned to build on this foundation and continue creating long-term value for all stakeholders.

Strategic & Operational Delivery

In FY2025 our efforts have been firmly concentrated on delivering a market-leading pub operating model, scaling our proven guest-led pub formats, and continuing to embed digital capabilities across the business. Each of these areas is already delivering tangible performance benefits and collectively, they are laying the foundation for long-term, sustainable growth.

Market-Leading Pub Operating Model

Delivering a market-leading operating model is central to our strategy and has underpinned much of the progress made this year. At its core, our model is built around three pillars: revenue growth, cost efficiency, and guest satisfaction - all working together to create a more profitable, consistent, and scalable business. We have continued to invest in initiatives that support top-line performance, with our demand-driving event programme playing a key role. From Trivial Pursuit: 'Win a Wedge' to Pub Life and partnerships like Paddington in Peru and the Cool Hand Cup, these events have supported engagement, driven footfall, and strengthened our connection with guests.

Our operational discipline has driven a 140bps improvement in EBITDA margin - a standout result that reflects the strength of our approach. Our labour scheduling tool, which is focused on ensuring we have the right people at the right time, has helped us manage external cost pressures, while procurement and energy efficiencies continue to deliver meaningful gains. Going forward, we view cost pressures as manageable within the context of our ongoing efficiency programme, and we expect to deliver further margin uplift in the year ahead.

At the heart of our progress is an unwavering focus on the guest. Our record Reputation score of 816 reflects the pride our teams take in creating great experiences and the tangible improvements we have made across the estate. From demand-driving events and better Signature menu execution to increased Order & Pay usage and more efficient labour scheduling, every initiative is designed to enhance service and satisfaction - and it is great to see our pubs delivering that experience more consistently than ever.

Differentiated Pub Formats

Our differentiated pub formats are a key future growth engine. In FY2025, we completed 31 conversions - 21 Two-Doors, 5 Grandstands and 5 Woodie's - all delivered on time, on budget and generating strong guest feedback and average revenue uplifts of 23%. With average capex per renovation of £260k and a return on invested capital of over 30%, these formats are delivering in terms of both guest satisfaction and financial returns. Looking ahead to FY2026, we plan to accelerate the roll-out with at least 50 further conversions, all within our disciplined 7-8% capex-to-revenue range. This next phase will continue to scale one of the most exciting and high-impact levers in our strategy.

Digital Transformation

Digital transformation is playing a central role in improving both the guest experience and operational efficiency across the business. At the heart of this is our enhanced Order & Pay platform, launched in March and now live across our entire managed estate. Results have been very encouraging, with revenue per transaction up over 10%, supported by stronger upselling and premiumisation. The platform also improves speed of service - particularly in high-volume and outdoor areas - and is therefore contributing to higher guest satisfaction. More broadly, we are embedding AI tools across the business, from forecasting and labour planning to menu development and energy efficiency. With further investments in infrastructure - including new tills, tablets and an upgraded Wi-Fi network - we are building a more connected, data-driven estate that can scale more efficiently and deliver for guests in every pub, at every visit.

Financial Progress

FY2025 marked a step-change in our financial performance. We delivered another year of significant profit growth and a material improvement in recurring free cash flow - enabling us to invest in our estate, reduce debt, and strengthen the platform for future shareholder returns. Like-for-like sales growth of 1.6% remained ahead of the market and was supported by strong performance from our 31 new format launches. Underlying profit before tax from continuing operations rose 71.3% to £72.1 million, following a 64.5% uplift in FY2024, driven by disciplined cost control and strong operational execution.

Recurring free cash flow of £53.2 million exceeded our CMD target and was delivered significantly ahead of schedule. This supported further deleveraging, with net debt (excluding IFRS 16 lease liabilities) reducing to £837.5 million. Net debt (excluding IFRS 16 lease liabilities) is now down by almost a third since FY2022 and remains underpinned by a predominantly freehold estate now valued at approximately £2.2 billion. Our leverage ratio improved to 4.6x, and net asset value per share rose to £1.25, reflecting increased profitability, estate revaluation gains, and debt reduction.

Over the near-to-medium term, we continue to expect to deliver on the targets set out at our CMD, which include:

· Revenue growth ahead of the market

· EBITDA margin expansion of 200-300 basis points beyond FY2024, targeting 23.4% to 24.4%

· Over £50 million recurring free cash flow

· >30% ROIC on investment focused capex

Sustainably Operating the Business

In FY2025, we continued to make meaningful progress across all areas of our sustainability agenda. We now have approximately 560 EV chargers across over 200 pubs, extended our glass reuse scheme to more than 150 locations, and completed the installation of solar panels at 65 pubs. We are proud to be leading the way on food waste too - achieving 74% of our 2030 reduction target and preventing over 43 tonnes of food waste through our partnership with Too Good To Go. On the people front, we were recognised as the UK pub industry's top employer by the Financial Times and with nearly 95% of our pubs achieving a 5* EHO rating, our commitment to high operational standards remains clear. We remain focused on driving further progress in FY2026, with practical, targeted actions that make our business more sustainable for the long term.

Outlook

Marston's heads into FY2026 with real momentum. Our high-margin operating model is underpinned by strong cost discipline, a scalable digital platform, and increasing operational efficiency - all of which are driving robust cash generation and ongoing margin improvement. Record guest satisfaction, reflected in our highest-ever Reputation score, speaks to the consistency of our offer and the pride our teams take in delivering great local pub experiences. We are well positioned heading into the critical festive period, with bookings tracking 11% ahead of the same point last year and a strong calendar of demand-driving events in place - such as Marston's Best Ever Christmas.

The standout opportunity for FY2026 is the acceleration of our guest-led pub formats - a proven growth engine at the heart of our strategy. The 31 conversions completed in FY2025 have continued to trade well beyond their initial uplift, giving us the confidence to step up to at least 50 format launches in the year ahead, with a focus on Two-Door and Grandstand. This roll-out represents a scalable, repeatable model for growth that is resonating with guests and supporting our longer-term ambitions. As we move into FY2026, our priorities are clear: to continue to drive performance through our market-leading operating model, new formats roll-out plan & digital transformation; delivering sustainable value for shareholders.

Financial Review

Revenue

Revenue was stable at £897.9 million (2024: £898.6 million).  Total sales in the Group's managed and partnership pubs for the 52-week period increased to £871.9 million (2024: £864.6 million). Like-for-like sales within our managed and partnership pubs were up 1.6% compared to FY2024, outpacing the market which grew at 0.7% (source: CGA RSM Hospitality Tracker). Like-for-like growth, although modest, was broad based, including drink like-for-like sales up 0.3% and food like-for-like sales up 2.2%. Sales were supported by our increasing focus on revenue-driving activity, 31 format conversions and consistent focus on customer service. Revenues in the tenanted and leased estate were £26.0 million (2024: £34.0 million). This follows c. £50 million of strategic disposals across FY2024 and FY2025, predominantly from the tenanted and leased estate, together with conversion of sites to the managed and partnership models.

Underlying EBITDA and operating profit

A key target for the Group, outlined at the CMD, was to grow underlying EBITDA margin by 200-300 basis points from 2024 levels, giving a target range of 23.4% to 24.4%.

The Group's profitability stepped up materially in the period. In FY2025, underlying EBITDA from continuing operations increased by 6.5% to £205.1 million (2024: £192.5 million). The EBITDA margin was up 140 basis points to 22.8%, despite c. £10.0 million of inflationary and regulatory cost headwinds, including employment cost increases following the national insurance and national living wage changes of April 2025, as we made strong progress in executing our market-leading operating model. Significant savings were made as we rolled out enhanced labour scheduling systems, and the Group delivered central efficiencies, procurement gains, and more efficient repairs and maintenance spend, whilst investing in increased marketing expenditure and more specialist roles. We see further opportunity to increase the EBITDA margin in FY2026 as we move towards our target.

As a result of the progress made on EBITDA margin, the average EBITDA per pub in managed and partnership increased 7.5% to £161.3k, the average EBITDA per pub in tenanted and leased increased 2.5% to £98.6k and the overall EBITDA per pub increased 7.4% to £154.4k.

Underlying depreciation and amortisation costs of £45.2 million were broadly flat year-on-year (2024: £45.3 million).

Underlying operating profit from continuing operations increased by 8.6% to £159.9 million (2024: £147.2 million). Underlying operating margins of 17.8% grew by 140 basis points compared to the prior period (2024: 16.4%). Statutory operating profit from continuing operations, including non-underlying items (see below), was £179.7 million (2024: £151.7 million).

Net finance costs

Underlying net finance costs were £87.8 million, substantially lower than the prior period (2024: £105.1 million) as a result of lower average net debt year-on-year, in particular following the disposal of the remaining 40% interest in Carlsberg Marston's Limited (CMBC) part way through FY2024. Please see the Debt and Financing section below for a breakdown of the components of net debt.

Underlying net finance costs include £34.8 million relating to the business's securitised debt (2024: £35.3 million), £11.9 million relating to bank borrowings (2024: £25.4 million), £23.3 million relating to other lease-related borrowings (2024: £22.9 million), a £19.0 million expense relating to IFRS 16 lease liabilities (2024: £19.2 million), and £(1.2) million of other items (2024: £2.3 million). There was a non-underlying charge of £3.6 million relating to the Group's interest rate swaps (2024: £32.2 million).

Profit before tax

As a result of a £12.7 million increase in underlying operating profit and a £17.3 million decrease in underlying net finance costs, underlying profit before tax from continuing operations increased year-on-year by £30.0 million, or 71.3%, to £72.1 million (2024: £42.1 million). Statutory profit before tax from continuing operations was £88.3 million (2024: £14.4 million), with the difference reflecting a net non-underlying profit of £16.2 million, the details of which are set out below.

Non-underlying items

There was a net non-underlying profit of £16.2 million before tax. This included a £22.9 million net gain representing net reversals of previous impairments of freehold and leasehold property values, following the external estate valuation of the Group's effective freehold properties and the impairment review of the Group's leasehold properties, partially offset by £3.1 million of reorganisation, restructuring and relocation costs and a £3.6 million net expense in respect of interest rate swap movements.

In the prior period, there was a net non-underlying loss from continuing operations of £27.7 million before tax, consisting of a net loss of £32.2 million in respect of interest rate swap movements and £1.2 million of restructuring costs, partially offset by £5.7 million of net impairment reversals from the 2024 property revaluation and leasehold impairment review.

Taxation

The underlying tax charge was £18.3 million (2024: £9.0 million), with an underlying effective tax rate of 25.4% (2024: 21.4%). The effective rate is slightly higher than the standard rate of corporation tax primarily due to the impact of disallowed depreciation on non-qualifying assets offset by a prior period tax credit. We expect the underlying effective tax rate to be approximately in line with the standard rate of corporation tax in future years.

Tax on non-underlying items was a credit of £1.6 million (2024: £12.1 million), driven primarily from the recognition of a £5.4 million deferred tax asset from capital losses, previously derecognised, arising from the upward revaluation of land and buildings.

The statutory tax charge was £16.7 million (2024: credit of £3.1 million) on statutory profit before tax from continuing operations of £88.3 million (2024: £14.4 million), with an effective tax rate of 18.9% (2024: negative effective tax rate of 21.5%). The effective tax rate for prior periods including discontinued operations was positively impacted by income from associates, now discontinued, recognised on a post-tax basis.

Profit after tax and earnings per share

The statutory profit after tax from continuing operations was £71.6 million, compared to £17.5 million in the prior period. In the prior period, there was a loss of £36.0 million from discontinued operations, including an impairment of the carrying value of the CMBC investment and losses on disposal. The statutory profit from both continuing and discontinued operations in the current period was £71.6 million compared to a loss of £18.5 million in the prior period.

Basic underlying earnings per share from continuing operations increased 63.5% to 8.5 pence per share (2024: 5.2 pence per share). Total statutory basic earnings per share were 11.3 pence (2024: loss of 2.9 pence).

Capital expenditure

Our capital expenditure strategy was set out at the CMD, with a near-term target spend of 7-8% of revenue, including

projects to enhance the estate through differentiated formats. Making progress on this, capital expenditure was £61.2 million in the current period (2024: £46.2 million), representing 6.8% of revenue (2024: 5.1% of revenue). Of the total expenditure, £8.0 million was spent on 31 format conversions, including 21 Two-door, 5 Grandstand and 5 Woodie's. Since re-opening, these conversions have delivered sales uplifts of 23% with EBITDA returns on investment in excess of 30% in trading to date. In addition, we continued to invest in maintaining our core business and in our IT platforms.

Property and disposals

The Group's policy is to revalue its effective freehold estate on an annual basis and review its leasehold estate annually for impairment. The Group conducts an annual external valuation of all its properties to assist with this process, with all pubs inspected on a rotating basis. Approximately one-third of the estate undergoes physical inspection each year, while the remainder is subject to a desktop valuation. In June 2025, Christie & Co carried out an external valuation, the results of which are reflected in the full year accounts.

The carrying value of the estate is £2.2 billion (2024: £2.1 billion). Following the valuation, the Group recognised a £22.9 million net impairment reversal of freehold and leasehold properties in the income statement (2024: £5.7 million), and a £109.8 million unrealised surplus on the revaluation of properties (2024: £80.8 million) together with a £38.6 million reversal of past revaluation surplus (2024: £39.8 million) in other comprehensive income.

During the current period, the Group generated £6.4 million in net proceeds from non-core pub disposals (2024: £46.9 million), mainly reflecting the end of the prior period's strategic disposal programme.

The Group ended the period with 1,328 pubs (2024: 1,339 pubs), of which 1,182 were operating under the managed or partnership models (2024: 1,182) and 146 were operating under the tenanted and leased models (2024: 157 pubs).

Pensions

The balance on our defined benefit scheme was a £15.4 million surplus as at 27 September 2025 (2024: £13.1 million surplus). The Group will continue to pay the administrative fees associated with the scheme but is currently making no other contributions to the scheme.

Net asset value

The table below shows the main movements in net asset value:

* 'Cash' in this table refers to cash and cash equivalents, together with other cash deposits.

Net assets increased to £790.7 million (2024: £654.8 million), with a net asset value per share of £1.25 (2024: £1.03). The main changes in net asset value were an increase in property, plant and equipment as a result of the property revaluation and the capital investment made in the business, a decrease in borrowings net of cash due to the positive progress made in generating free cash flow in the year, and an increase in deferred tax liabilities, largely as a result of the property revaluation gain.

Cash flow

A summary of the Group's cash flow is given below:

There was a net cash inflow from operating activities of £199.2 million (2024: £207.4 million, £193.6 million excluding the CMBC dividend). Within this, working capital timing differences were £3.0 million (2024: £8.2 million). There were £1.6 million of payments in relation to the defined benefit pension scheme (2024: £7.5 million) following the cessation of c. £6 million annual cash contributions at the end of FY2024. Cash tax payments were £5.3 million (2024: repayments of £0.1 million), comprising payments in respect of FY2024 and payments on account for FY2025 under the 'large company' regime. As the Group's taxable profits increase, it expects to move into the 'very large company' regime in FY2026 which will result in c. 18 months of cash tax charges being included in the FY2026 cash flow.

Net interest costs including finance lease capital repayments received were £83.2 million (2024: £98.2 million) and capital expenditure was £61.2 million (2024: £46.2 million). After bank fees, swap termination costs, and the purchase of and sales proceeds from own shares, recurring free cash flow was £53.2 million (2024: 43.6 million), meeting the target set out at the CMD of recurring free cash flow of over £50 million a year.

Taking into account disposals proceeds received of £6.4 million (2024: £46.9 million), a CMBC dividend of £nil (2024: £13.8 million) and cash outflows in relation to the disposal of the Group's remaining 40% interest in CMBC of £2.8 million (2024: inflow of £205.5 million), net cash flow for the period was £56.8 million (2024: £309.8 million).

Mandatory securitised loan note repayments of £43.8 million (2024: £41.5 million), repayments of the capital element of lease liabilities relating to IFRS 16 of £8.6 million (2024: £8.4 million) and other debt repayments and transfers from other cash deposits of £14.0 million (2024: £242.0 million) resulted in an overall decrease in cash and cash equivalents of £9.6 million (2024: increase of £17.9 million).

Debt and financing

Net debt, excluding IFRS 16 lease liabilities, was £837.5 million (2024: £883.7 million), a reduction of £46.2 million. Including IFRS 16 lease liabilities of £368.2 million (2024: £373.7 million), total net debt was £1,205.7 million (2024: £1,257.4 million).

The Group has continued to make progress in net debt reduction during the year; with net debt:EBITDA excluding IFRS 16 falling from 5.2x in 2024 to 4.6x at the period end. Leverage including IFRS 16 reduced from 6.5x to 5.9x.

The Group's financing, providing an appropriate level of flexibility and liquidity for the medium term, comprises:

The securitisation debt is loan notes issued in 2005 and 2007, secured on ring-fenced properties. It is long-term debt with predictable debt servicing (capital and interest payments). All floating rate notes are economically hedged in full by the Group using interest rate swaps whereby all interest payments are swapped to fixed interest payable. The weighted average fixed interest rate payable by the Group on its securitised debt as at 27 September 2025 was 6.4%. The terms of the securitisation require a liquidity facility to be in place, of which £nil was drawn at year end. 

'Other lease-related borrowings' is debt recognised against properties subject to sale and leaseback arrangements with repurchase options available to the Group at nominal value. The obligations under these arrangements do not fall within the scope of IFRS 16 "Leases" and are accounted for in accordance with IFRS 9 "Financial Instruments", with the assets treated as "effective freeholds". Caps and collars are in place to limit the index-linked increases in interest costs. Currently, no capital repayments are being made on the borrowings, which are economically similar to mortgages; repayment of the capital element is expected to begin in FY2033 with full repayment by 2058.

During the current period, the Group successfully secured a one-year extension to its banking facility, which was due to expire in July 2026. The revised bank facility to July 2027 is for £200.0 million, of which £21.0 million was drawn at the year end.

IFRS 16 lease liabilities are obligations from leases including sale and leaseback arrangements that completed without an option to repurchase the asset at nominal value.

The Group holds three interest swaps in relation to its borrowing facilities with a net valuation of £(53.9) million as at the period end (2024: £(59.0) million), which are excluded from net debt.

The vast majority of our borrowings are long-dated and asset-backed, including the securitisation debt. The loan to value of securitised debt, which is decreasing year-on-year, is currently 41% (2024: 46%), and the loan to value of net debt excluding lease liabilities is 44% (2024: 50%).

In summary, we have adequate cash headroom in our financing structures to provide operational flexibility. Importantly, all of our medium to long-term financing is hedged or contains caps and collars, thereby minimising any exposure to interest rate movements. Good progress has been made in deleveraging the business and we expect this progress to continue moving forwards.

Capital allocation and shareholder returns

As set out at our CMD, our capital allocation framework is focused on enhancing long-term shareholder value through a disciplined balance of delivering strong returns on investment and deleveraging. The Board is pleased that the Group has delivered initial EBITDA returns in excess of 30% on expansionary capital. In addition, deleveraging has continued and net debt to EBITDA before IFRS 16 has fallen from 5.2x in FY2024 to 4.6x at this period end. However, leverage remains higher than target and, as such, no dividend will be paid in respect of FY2025.

Shareholder returns remain a core part of our capital allocation strategy and are planned once leverage (excluding IFRS 16) falls below 4.0x. Given the significant discount between net asset value per share and the share price, consideration will be given at that point to the use of cash for share buy backs alongside or instead of other returns of capital, taking into account further planned debt reduction, the requirement of cash for growth investment and the availability of distributable reserves.

Going concern

Having considered the Group's forecast financial position and exposure to principal risks and uncertainties, including cost and inflationary pressures, the Directors have a reasonable expectation that the Group has adequate resources to continue to operate within its borrowing facilities and covenants for a period of at least 12 months from the date of signing the financial statements. Accordingly, the financial statements have been prepared on the going concern basis. Full details are included in note 1 of the financial statements. This forecast predates the Autumn Budget 2025 and therefore does not include the impact of any specific measures which may be announced.

Key estimates and significant judgements

Under IFRS the Group is required to make estimates and assumptions that affect the application of policies and

reported amounts. Details are provided in note 1 of the financial statements.

Director Dealings

During the financial year, the Chief Executive Officer purchased 148,103 ordinary shares in the Company, representing one third of the FY2024 bonus award, together with completing four automatic disposals to cover administrative charges. These disposals totalled 203 shares at a weighted average price of 39.55 pence, for aggregate proceeds of £80.29.

Notes:

· Prior period was a 52-week period to 28 September 2024.

· The Group uses a number of alternative performance measures (APMs) to enable management and users of the financial statements to better understand elements of financial performance in the period. APMs are explained and reconciled in the appendix to the financial statements.

GROUP INCOME STATEMENT

For the 52 weeks ended 27 September 2025

The results for the current period reflect the 52 weeks ended 27 September 2025 and the results for the prior period reflect the 52 weeks ended 28 September 2024.

1 Alternative performance measures (APMs) are defined and reconciled to a statutory equivalent in the APM section of these Preliminary

Results.

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the 52 weeks ended 27 September 2025

The results for the current period reflect the 52 weeks ended 27 September 2025 and the results for the prior period reflect the 52 weeks ended 28 September 2024.

GROUP CASH FLOW STATEMENT

For the 52 weeks ended 27 September 2025

The cash flows for the current period reflect the 52 weeks ended 27 September 2025 and the cash flows for the prior period reflect the 52 weeks ended 28 September 2024.

* The Group reports cash flows arising from its bank borrowing facilities on a gross basis where the maturity periods were greater than three months. The net repayment of bank borrowings in the current period was £14.0 million (2024: £194.0 million).

GROUP BALANCE SHEET

As at 27 September 2025

GROUP STATEMENT OF CHANGES IN EQUITY

For the 52 weeks ended 27 September 2025

For the 52 weeks ended 28 September 2024

NOTES

For the 52 weeks ended 27 September 2025

1 Accounting policies

The Group's principal accounting policies are set out below:

Basis of preparation

These consolidated financial statements for the 52 weeks ended 27 September 2025 (2024: 52 weeks ended 28 September 2024) have been prepared in accordance with UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain items, principally effective freehold land and buildings, certain financial instruments, retirement benefits and share-based payments, as explained below.

The financial information contained in this preliminary announcement does not constitute the Group's statutory accounts within the

meaning of section 434 of the Companies Act 2006. The financial information has been extracted from the statutory accounts of the

Group for the 52 weeks ended 27 September 2025, which will be filed with the Registrar of Companies in due course. The statutory

accounts for the 52 weeks ended 28 September 2024 have been delivered to the Registrar of Companies. The auditor has reported on

those accounts; their reports were (i) unqualified and (ii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Going concern

The Group successfully secured the extension of its bank facility, which was due to expire in July 2026. The revised funding comprises a £200.0 million bank facility available until July 2027 (of which £21.0 million was drawn at 27 September 2025) and a £5.0 million overdraft facility (of which £nil was drawn at 27 September 2025). The Group's sources of funding also include its securitised debt.

There are three covenants associated with the Group's amended bank borrowings for the non-securitised group of companies - Debt Cover, Interest Cover and Liquidity. The Debt Cover covenant is a measure of net borrowings to EBITDA, the Interest Cover covenant is a measure of EBITDA to finance charges, and the Liquidity covenant is a measure of headroom on the Group's bank borrowings. The covenant levels remain unchanged except for the Interest Cover covenant which does not step up to 2.0 times until 3 April 2027 (previously 28 March 2026).

There are two covenants associated with the Group's securitised debt. The FCF DSCR is a measure of free cash flow to debt service for the group headed by Marston's Pubs Parent Limited and the Net Worth is derived from the net assets of that group of companies.

The Directors have performed an assessment of going concern over the period of 12 months from the date of signing these financial statements, to assess the adequacy of the Group's financial resources. In performing their assessment, the Directors considered the Group's financial position and exposure to principal risks, including the risk of 'uncertain economic and geopolitical outlook', in which high inflation, slow GDP growth and elevated interest rates may lead to lower discretionary spending on leisure activities, leading to reduced footfall and average spend per visit. This assessment predates the Autumn Budget 2025 and therefore does not include the impact of any specific measures which may be announced. However, downsides are considered in this going concern assessment as set out below.

The Group's base case forecast assumes moderate sales price increases and operational costs (that have not already been secured) rising broadly in line with inflation together with continuing progress on the margin expansion programme. The conclusion of this assessment was that the Directors are satisfied that the Group has adequate liquidity, is not forecast to breach any covenants within its banking group or securitisation in its base case forecast and has sufficient resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. 

Due to the uncertain economic and geopolitical outlook, risk of further inflationary pressures and the potential impact of this on guest sentiment, the Group has analysed a downside scenario in which a lower level of sales are achieved compared to the base case forecast with additional costs beyond those forecast in the base case and variable costs flexing with the reduced volume, excluding any potential mitigating management actions. The result of this downside scenario is that the Group would still have sufficient liquidity to settle liabilities as they fall due and headroom within its financial covenants throughout the going concern review period.

The Group has also performed a reverse stress test case, which analyses to what extent sales would need to decrease from the base case in order to breach financial covenants, with similar cost assumptions to that of the base case forecast and variable costs flexing with the reduced volume. This reverse stress test shows that the Group could withstand a reduction in sales of over 10% from those assessed in the base case throughout the going concern period, excluding any mitigating actions other than the removal of discretionary employee reward payments. The Directors consider this scenario to be remote as, other than when the business was closed during the pandemic, the Group has never experienced sales declines to this level. Additionally, the Group could take management actions within the Directors' control including deferral or reduction of discretionary spend to partially mitigate the financial impact.

Accordingly, the financial statements have been prepared on the going concern basis.

Key estimates and significant judgements

Under IFRS the Group is required to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. 

The following are the critical judgements, apart from those involving estimates (which are dealt with separately below), that the Directors have made in the process of applying the Group's accounting policies and that have had the most significant effect on the amounts recognised in the financial statements in the current and prior periods:

NOTES CONTINUED

For the 52 weeks ended 27 September 2025

1 Accounting policies (continued)

Key estimates and significant judgements (continued)

Non-underlying1 items

· Determination of items to be classified as non-underlying1.

Discontinued operations

· Determination of income from associates representing a separate major line of business resulting in the classification as a discontinued operation.

The following estimates and assumptions have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities:

Property, plant and equipment

· Valuation of effective freehold land and buildings.

Retirement benefits

· Actuarial assumptions in respect of the defined benefit pension plan, which include discount rates, rates of increase in pensions, inflation rates and life expectancies.

Financial instruments

· Valuation and accounting treatment of derivative financial instruments.

2 Segment reporting

The Group is considered to have one operating segment under IFRS 8 'Operating Segments' and therefore no disclosures are presented. This is in line with the reporting to the chief operating decision maker and the operational structure of the business. The measure of profit or loss reviewed by the chief operating decision maker is underlying1 profit/(loss) before tax for the total of continuing and discontinued operations.

Geographical areas

All of the Group's revenue is generated in the UK. All of the Group's material assets are located in the UK.

3 Revenue

4 NON-Underlying1 items

NOTES CONTINUED

For the 52 weeks ended 27 September 2025

4 NON-Underlying1 items (CONTINUED)

Net impairment reversal of freehold and leasehold properties and other operating charges

At 29 June 2025 the Group's effective freehold properties were revalued by independent chartered surveyors on an open market value basis. The Group also undertook an impairment review of its leasehold properties in the current and prior period.

The revaluation and impairment adjustments in respect of the above were recognised in the revaluation reserve or income statement as appropriate. The amount recognised in the income statement comprises:

Reorganisation, restructuring and relocation costs and other operating charges

As previously reported during the interim results for the 26 weeks ended 29 March 2025, during the current period the Group commenced a programme to align and resource teams against the Group's strategic priorities and reduce cost for future resilience of the business. The costs identified as non-underlying1 in the current period are one-off headcount-related costs which are expected to be short-term in nature. The cost of implementing this programme in the current period was £3.1 million (2024: £nil), of which £2.0 million was incurred in the first half of the current period. This is a cash cost of which £2.5 million was paid in the current period and £0.6 million will be paid in the subsequent period. The cost has been recorded within non-underlying1 items in the income statement based on its significance, nature, expected infrequency and consistency with treatment of similar historical programmes.

During the prior period, the Group completed the implementation of an operational programme to simplify the business and drive efficiencies. The cost of this programme in the prior period was £0.7 million.

Interest rate swap movements

The Group's interest rate swaps are revalued to fair value at each balance sheet date. These fair value (gains)/losses have been recognised in the hedging reserve or the income statement as appropriate. Reclassifications within the income statement and/or with the hedging reserve have also been made as required.

A loss of £0.6 million (2024: £0.2 million) on the ineffective portion of the fair value movement of interest rate swaps designated as part of a hedging relationship and a fair value gain of £3.1 million (2024: loss of £18.2 million) on interest rate swaps not designated as part of a hedging relationship have also been recognised within non-underlying1 items in the income statement.

Cash paid of £0.6 million (2024: £1.2 million) in respect of interest rate swaps designated as part of a hedging relationship and cash paid of £0.2 million (2024: received of £7.0 million) in respect of interest rate swaps not designated as part of a hedging relationship were reclassified from non-underlying1 items to underlying1 net finance costs to ensure that underlying1 net finance costs reflect the fixed rate paid on the associated debt.

NOTES CONTINUED

For the 52 weeks ended 27 September 2025

4 NON-Underlying1 items (CONTINUED)

Interest rate swap movements (continued)

Finally, £6.9 million (2024: £8.0 million) of the balance remaining in the hedging reserve in respect of discontinued cash flow hedges has been reclassified as charge to the income statement within non-underlying1 items.

The treatment of the amounts as non-underlying1 has been made based on their significance, nature and consistency with previous classification. Unless specified, the movements have no cash impact.

Prior period non-underlying1 items

Duplication costs

On 17 November 2023 Andrew Andrea stepped down from his role as CEO of the Group and, following an external process, Justin Platt was appointed as CEO from 10 January 2024. During the prior period duplicated costs were incurred as a result of the change in CEO which were unusual and one-off for Marston's. The duplicated costs have been recorded within non-underlying1 items in the income statement based on their nature and expected infrequency.

Non-underlying1 loss from associates

The Group's associate, Carlsberg Marston's Limited (CMBC), recognised an impairment (of which the Group's share was £14.0 million) during the prior period in relation to some of the ale brands that it held. The ale category had been severely impacted by the COVID-19 pandemic, secular trends, and the cost-of-living crisis, resulting in long-term expectations specifically for the ale brands being updated. The brand impairment of £14.0 million was material in the context of both the Group's total results and the underlying1 loss from associates of £0.5 million. The resulting brand impairment, which had no cash impact, was recorded within non-underlying1 items in the income statement based on its significance, nature and expected infrequency.

CMBC also recognised an onerous contract provision (of which the Group's share was £2.6 million) during the prior period in relation to a specific porterage contract that it held. The significant cost inflation experienced from the cost-of-living crisis, alongside the increases in distribution costs over and above what was reasonably anticipated, led to an acute and short-term (rather than business-as-usual) environment of cost inflation which required an onerous provision to be recorded for this specific contract. The onerous contract provision of £2.6 million was material in the context of the underlying1 loss from associates of £0.5 million. The resulting onerous contract provision, which had no cash impact, was recorded within non-underlying1 items in the income statement based on its significance, nature and expected infrequency.

Impairment of associate and loss on disposal of associate

On 31 July 2024, Marston's PLC completed the sale of its remaining non-core brewing assets, being its 40% interest in Carlsberg Marston's Limited (CMBC), to a subsidiary of Carlsberg A/S for £206.0 million in cash, to create a business entirely focused on pubs.

An impairment assessment over the carrying value of the Group's investment in CMBC was performed immediately prior to disposal on 31 July 2024. The result of the impairment assessment was an impairment to the carrying value of the Group's investment in CMBC of £8.0 million. The remaining difference between the newly impaired carrying value of the investment and the net disposal proceeds represented a loss on disposal of £11.9 million.

These costs were recorded within non-underlying1 items in the income statement based on their materiality, nature and expected infrequency.

Impact of taxation

The current tax credit relating to the above non-underlying1 items amounts to £0.5 million (2024: £0.1 million). The deferred tax credit relating to the above non-underlying1 items amounts to £1.1 million (2024: £12.0 million). 

5 Finance costs and income

NOTES CONTINUED

For the 52 weeks ended 27 September 2025

6 Taxation

A taxation credit in relation to tax on share-based payments of £0.2 million (2024: £0.1 million) has been recognised directly in equity.

The actual tax rate for the period is lower (2024: lower) than the standard rate of corporation tax of 25% (2024: 25%). The differences are explained below:

In December 2021, the Organisation for Economic Co-operation and Development (OECD) published the Pillar Two model rules to introduce a global minimum effective tax rate of 15%, under its Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

UK legislation adopting the Pillar Two rules was substantively enacted on 20 June 2023 and will apply to the Group for the 52 weeks ended 27 September 2025 onwards.

Based on its assessment of the trading results, the Group anticipates that it will benefit from the transitional safe harbour rules and does not expect to pay any Pillar Two top-up tax in respect of the 52 weeks ended 27 September 2025.

The Group has applied the exemption under the IAS 12 'Income Taxes' amendment for recognising and disclosing information about deferred tax assets and liabilities relating to Pillar Two income taxes.

NOTES CONTINUED

For the 52 weeks ended 27 September 2025

7 Earnings per ordinary share

Basic earnings/(loss) per share are calculated by dividing the profit/(loss) attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period, excluding treasury shares and those held on trust for employee share schemes.

For diluted earnings/(loss) per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. These represent share options granted to employees where the exercise price is less than the weighted average market price of the Company's shares during the period. 

Underlying1 earnings per share figures are presented to exclude the effect of non-underlying1 items. The Directors consider that the supplementary figures are a useful indicator of performance.