Trading Statement

Marston's PLC
04 October 2007



                                     


                                                                  4 October 2007



                          Marston's PLC ('Marston's')


                          Close Period Trading Update



In accordance with its usual practice, the Board of Marston's PLC reports on
trading for the 52 weeks ended 29 September 2007. The preliminary results are
expected to be announced on 30 November 2007.


Trading


Overall the Group continues to benefit from targeting the growing pub food
market in both managed and tenanted pubs. Marston's Beer Company is also
achieving growth and greater market share in its key ale brands.


In our interim results statement on 25 May 2007 we reported strong first-half
trading. Legislation to ban smoking in public places was introduced in Wales on
2 April and in England on 1 July. Planned investments in outside trading areas
were completed before the ban came into effect, and there has been no
discernable impact on trading to date. Trends seen in the first half-year,
including strong growth in food sales, have continued.

The unseasonal weather over the summer included severe flooding in June and July
which directly affected approximately 150 pubs, with all but 5 having re-opened
by the financial year-end. With the exception of the short term impact of these
weather conditions trading has been in line with expectations.


In Marston's Inns & Taverns, which now comprises 550 managed pubs, like for-like
sales growth for the year was 4.6% despite the poor summer weather and the
benefit of the World Cup in 2006. Like-for-like wet sales increased by 0.6% and
food sales, which now represent 34% of total retail sales, increased by 13.3% on
the same basis.



Marston's Inns and Taverns like-for-like sales growth - % change*

              33 weeks to 10 weeks to   4 weeks to     5 weeks to    52 weeks to
                 19 May**      28 July   25 August   29 September   29 September

Food sales           13.5          9.2        17.2           13.4           13.3
Total sales           6.6        (2.3)         9.6            2.8            4.6

*including pubs affected by flooding

**as reported in the interim results statement on 25 May


A strong first-half performance continued during April, but trade weakened in
May, June and July as a consequence of unseasonal weather and flooding. Since
the end of July like-for-like sales growth has been strong notwithstanding the
introduction of the smoking ban. The performance of the Eldridge Pope managed
estate, acquired in January 2007, has been in line with our expectations.


Marston's Inns & Taverns organic development included the opening of 19 new
outlets in the year, mainly new-build pubs. We expect to open 20 new outlets in
2008.


In Marston's Pub Company, which comprises 1,722 tenanted and leased pubs,
estimated average profit per pub increased by around 13% after allowing for the
effect of the disposal of 279 pubs to aAim Group in May 2007, demonstrating the
improving quality of the estate. Like-for-like profit per pub, including pubs
affected by flooding, is estimated to have increased by approximately 3%.


Marston's Beer Company performed strongly and ahead of the market, with core ale
brand volumes up by over 6% overall. Our premium ale brands have continued to
show strong growth, with Marston's Pedigree up by nearly 6% and Jennings
Cumberland Ale up by 30%. Ringwood, acquired in July 2007, also performed well.
Our own brands market share of the premium cask ale market is now over 20%.


Financing


During the year just ended, higher short term interest rates increased the cost
of borrowing under bank facilities of £500m by around 1%. Since the year-end we
have taken advantage of more attractive long term interest rates to fix the cost
of all of our bank debt using interest rate swaps. All borrowings are now
effectively at fixed rates of interest with a blended cost of just over 6%.


During the year we purchased 28.1 million shares at a total cost of around £120
million.



Profit before taxation and earnings per share


Profit before taxation for the financial year to 29 September 2007 is
anticipated to be slightly below our original expectations due to the impact of
higher interest rates, flood related repair costs and poor summer weather.
However, earnings before exceptional items are anticipated to be in line with
our original expectations reflecting the impact of share buy-backs and the fact
that the effective rate of tax is expected to be lower than last year.


Pensions


The Eldridge Pope Pension Scheme was merged with the Marston's PLC Pension and
Life Assurance Scheme on 7 September 2007. An additional contribution of £11.3
million has been made to the Marston's PLC Scheme since the year-end as a
consequence of the different funding levels of the schemes prior to merger. The
previously disclosed current schedule of top-up contributions of £7.2 million
per annum, intended to eliminate the Marston's PLC Scheme funding deficit by
2014, will continue to be made.


Outlook


Trading has continued to be good after the introduction of smoking bans in
England and in Wales, and although we are more cautious about the impact of this
legislation over the winter months we believe that well located, well invested
pubs with high standards of service will benefit in the longer term.


The outlook for costs is broadly neutral overall. Food purchase prices and raw
materials in brewing are rising ahead of inflation, but we have fixed the
majority of our energy costs over the next financial year and we have completed
the negotiation of lager supply contracts on improved terms and with a wider
portfolio of brands available. The recent increase in the minimum wage is in
line with inflation.


We are well positioned to continue to benefit from current market trends,
including growth in casual dining, and to derive further value from our
integrated business model. We remain confident about the future prospects for
the Group.


Enquiries:


Marston's PLC

Ralph Findlay, Chief Executive

Paul Inglett, Finance Director

Tel: [phone]


Hudson Sandler

Andrew Hayes

Nick Lyon

James White


Tel: [phone]




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