Marston's sees food and drink sales surge
Pitcher & Piano and Tavern Table group Marston's said its focus on food and local beers was paying off after an improved trading performance.
Expansion: Marston's plans to open 20 new pub restaurants in 2011
The group, which has more than 2,000 pubs and brews ales including Pedigree, Hobgoblin and Brakspear, said the financial year for the 12 months to October 2 showed stronger trends in all three of its operating divisions.
Sales in its 489-strong managed pub business rose 1.7% in the year and by the same percentage in the final nine weeks of the trading period.
A rise in food sales of 2.5% outstripped drinks growth of 1.4% in the year as Marston's benefited from its F-Plan strategy, which has seen it focus on 'food, families, females and forty/fifty somethings'.
Food sales now account for around 40% of sales in the managed estate and has been accompanied by a plan to add more new-build outlets.
The Wolverhampton-based company opened 15 new sites in the year and said turnover and profits at the sites were ahead of its expectations. Marston's plans to open 20 new pub restaurants in 2011 and 25 in 2012.
In the tenanted and leased pubs division, underlying profit trends have continued to improve with like-for-like profits expected to be 3.7% below last year, compared with the 4.5% decline reported in May.
The beer business is likely to report turnover and operating profits slightly ahead of last year, despite strong comparatives.
Own-brewed ale volumes were slightly lower than last year, but continued to outperform the UK beer market, Marston's added.
Shares were more than 1% higher after analysts said the company had posted a decent performance in the face of dire weather conditions in August and September. The company is forecast to report profits of around £73 million in the year, up slightly on a year earlier.
Marston's added in a trading statement: '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.'
Marston's shares were up 2.9p to 98.6p this morning.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Inside the new Ferrari V12 Cilindri
- How to invest for income and growth: SAINTS' James Dow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- Mini celebrates the release of brand new all-electric car Mini Aceman
- TONY HETHERINGTON: Boss behind firms fined £340k for over...
- British businesses awash with 'accidental' bosses who...
- Shipping broker Clarksons on list of shame after...
- Cost-of-living crunch wipes shine off Thomas Sabo jewellery
- MIDAS SHARE TIPS UPDATE: Wind is turning in Octopus...
- As world lurches from crisis to crisis, experts share...
- A good week - not before time, but let's not get carried...
- Hollywood silly money? I'd only have stuffed it under the...
- CITY WHISPERS: Bill Ackman's cerulean eyes charm...
- 86-year-old Peter's woes with a faulty smart meter that...
- Virgin Money's biggest independent investor...
- Britain's nascent battery industry receives shot in the...
- Helium and hydrogen company set to join stock market in...
- Where is Labour's 'white heat' revolution to revive...
- JOHCM UK EQUITY INCOME FUND: Rate cuts... and a spending...
- North Sea projects worth £21bn put at risk by Labour: Tax...
- MIDAS SHARE TIPS: Why it soon won't be hip to give the...
- Ikea pushes back opening of its Oxford Street store to...