Marston’s PLC has issued its update on trading for the year ended 4 October 2014. The preliminary results will be announced on 27 November 2014.
Commenting, Ralph Findlay, Chief Executive Officer said:
“We have made steady progress by consistently implementing our returns-focused strategy including an accelerated new-build programme, and in meeting our targets for disposals and conversions to franchise. We remain on track to complete the majority of this disposal and conversion activity by the end of financial year 2015, creating a pub estate appropriate to meet the needs of our customers in the long-term.”
Joshua Raymond Chief Market Strategist of Cityindex.co.uk commented:
“The results are broadly in line and won’t immediately create concern amongst shareholders. That being said, underlying sales at its core managed pubs has slowed from 4.1% to 3.1% as poor weather hit August sales. That is something to keep an eye on but should be countered by unseasonably warm weather at the start of Autumn.
“This leads us up nicely to the firm’s full-year results on November 27th. The pubs group shares prices remain stuck in a trading range between 140p and 160p. The fact that shares are trading at the lower end of this range right now may entice buyers into the market, but my preference is to wait until the November 27th update.”
Trading
“We have made sound progress this year and expect to report underlying operating profit broadly in line with expectations. In Destination and Premium, like-for-like sales were 3.1% ahead of the previous year including food like-for-like sales growth of 3.3% and like-for-like wet sales growth of 2.0%. Operating margin is ahead of the previous year and we completed 27 new pub-restaurants in the financial year, creating 1,350 jobs and including our 100th new-build opening since 2009.
“We expect to continue to develop our Destination estate at a similar rate of growth for the foreseeable future and have a good pipeline with at least 25 sites planned for completion in the 2015 financial year.
“In Taverns, like-for-like sales were 2.1% ahead of the previous year. Our franchise business, which now operates in around 540 sites, continues to perform strongly. “In Leased, like-for-like profits are estimated to be up 3% against the comparative year. “In Brewing, own brand beer volumes were in line with last year, with strong performances in premium ales and the off-trade, where we continue to lead the market.
Note: Joshua Raymond of Cityindex.co.uk is here