Trading Statement

RNS Number : 9141T

Marston's PLC

06 October 2010

 



                                    6 October 2010

MARSTON'S PLC ("MARSTON'S")

YEAR-END TRADING STATEMENT

Marston's PLC issues the following update on trading for the year ended 2 October 2010.  The preliminary results will be announced on 2 December 2010.

Trading

Earnings before tax and exceptional items are in line with our expectations, with improving trends in each of our trading divisions compared to last year.

In Marston's Inns and Taverns, our managed pubs division, like-for-like sales were 1.7% ahead of last year, including like-for-like food sales growth of 2.5% and like-for-like wet sales growth of 1.4%.  Like-for-like sales for the 9 weeks to 2 October 2010 were up 1.7%.  The success of our food offers, which now accounts for around 40% of sales, and the implementation of our new-build strategy continue to drive growth. Operating margins have improved this year largely as a consequence of tight operational cost control, lower utility costs and the disposal of 17 lower margin leasehold sites.

In Marston's Pub Company, our tenanted and leased pubs division, underlying profit trends have continued to improve with like-for-like profits estimated to be 3.7% below last year.  This compares favourably to the 4.5% decline reported in the Interim results in May.  Approximately 86% of the estate is currently let on substantive agreements, including Retail Agreements.  We now have 104 pubs on Retail Agreements, with performance in line with our expectations.  As previously announced, we expect to introduce a further 500 Retail Agreements over the next 3 years.

In Marston's Beer Company, we expect that both turnover and operating profit will be slightly ahead of last year against strong comparatives. Own-brewed ale volumes were slightly lower than the prior year, but continued to significantly out-perform the UK beer market which declined by around 6%. Premium ale volumes increased by 3% in the period and we continue to lead the market in the premium cask ale and premium bottled ale segments.

Net debt and cashflow are in line with our expectations.

New Build Development Programme

Our development plans are on track. We have opened 15 new sites during the year as planned, with both turnover and profit performance in the new openings ahead of our targets.  We expect to open 20 new pub-restaurants in 2011 and 25 in 2012.

Outlook

We have seen improving trends in each division and made good progress in implementing our strategy.  Our focus on value for money, high quality pubs, food and local beers places us in a strong position to meet the challenges ahead.

ENQUIRIES:             

Marston's PLC	Hudson Sandler
Ralph Findlay, Chief Executive	Andrew Hayes / Kate Hough
Andrew Andrea, Finance Director
Tel: [phone]	Tel: [phone]

NOTES TO EDITORS

○	Marston's is a leading independent brewer and pub operator.
○	It has an estate of 2,153 pubs situated nationally. The estate comprises 1,664 tenanted or leased pubs, and 489 managed pubs.
○	It is the UK's leading brewer of premium cask and premium bottled ales, including Marston's Pedigree and Hobgoblin. The beer portfolio also includes Banks's, Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers.
○	Marston's employs over 12,000 people throughout England and Wales.

 

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