LONDON (ShareCast) - (Sharecast News) - Marston's first half profit fell by more than 70% after the Covid-19 lockdown knocked £40m off revenues in March.
Underlying pretax profit for the six months to the end of March fell to £9.4m from £34.2m a year earlier as revenue dropped to £510.5m from £553.1m. The pub company swung to a statutory pretax loss of £33.2m from a £16.3m profit a year earlier.

Marston's said sales in the five months to the end of February were broadly in line with a year earlier before the government discouraged visits to pubs and then imposed a shutdown in March. Most of the £40m sales shortfall occurred in the last two weeks of March, Marston's said.

English pubs are due to reopen on 4 July under social distancing rules. Marston's said its expectations for the year were reduced and that the outlook was too unclear to provide guidance. The company repeated its intention not to pay dividends in the current financial year.

Marston's called on the government to support pubs and the wider hospitality sector with VAT cuts and business rate relief. It predicted fewer pubs as a result of the crisis and said it was in a good position to gain market share.

The company signed a deal with Carlsberg in May to create a brewing joint venture for Marston's beer brands such as Pedigree and Bombardier. Marston's said the deal would allow it to concentrate on its pub business as the sector emerges from the crisis.

Chief executive Ralph Findlay said: "Our immediate priority is to prepare our pubs to reopen on 4 July. The challenges facing the sector should not be underestimated and much rests on consumer confidence which may take time to rebuild.

"As the industry navigates its way out of lockdown, we will continue to urge government for continued support for pubs and wider hospitality ... to protect jobs, the economy and the invaluable role the pub plays in communities nationwide."

Marston's shares fell 4.6% to 61.55p.

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