In common with many pub and restaurant companies reporting results, poor weather has impacted results, but Marston’s current trading gives them confidence in delivering full year targets, despite higher financing costs.
Ralph Findlay, Chief Executive, commented on the results:
“Although the first half of this year has been significantly impacted by the poor weather in January and March, our focus on quality and good service at reasonable prices is what consumers are looking for. This underpins our clearly defined and proved strategy as we continue to drive growth through building new pub-restaurants, developing franchises, and benefiting from market trends in brewing. Trading in the second half year has started well, and we remain confident of achieving our full-year targets.”
Financial Highlights
- Group revenue – £358.1 million (2012: £342.1 million).
- Underlying operating profit – £66.6 million (2012: £67.6 million).
- Underlying PBT – £27.6 million (2012: £33.5 million), reflecting higher finance costs.
- Underlying earnings per share – 3.8 pence per share (2012: 4.7 pence per share).
- Innovative £101 million long-term financing – extends maturity of Group debt.
- Interim dividend – up 4.5% to 2.3 pence per share (2012: 2.2 pence per share).
- Current trading – good start to H2, which will benefit from £12 million profit initiatives.
Strategy and Operating Highlights
- Destination and Premium
- Operating profit up 10%
- Like-for-like food sales up 2%, food mix up 2% to 52%
- Expect at least 20 new-builds to complete this financial year
- 2013 new-builds ahead of internal target
Taverns
- Pressures on tenanted pubs continue
- 600 pubs now franchised
- Franchise like-for-like profits up 10%
Brewing
- Ale volumes up 8%, strong growth in off-trade
Chairman
- Roger Devlin appointed with effect from 1 September 2013
Current Trading – 6 weeks to 11 May
- Destination and Premium – lfl sales up 6%: lfl food sales up 9%, lfl wet sales up 3%.
- Taverns and Leased – lfl profits ahead of last year.
- Brewing – in line with expectations.