Marston's trading ahead of expectations as weather, Euros lend a hand
By Michele Maatouk
Date: Wednesday 28 Jul 2021
(Sharecast News) - Pub and hotel group Marston's hailed better-than-expected trading since May on Wednesday, with warmer weather and the Euros lending a hand, as it called on the government to make coronavirus tax relief permanent.
Marston's said overall sales since 17 May - when indoor hospitality was allowed to reopen - have been encouraging and ahead of its expectations, thanks to a combination of additional food covers, outdoor investment, warmer weather and the Euros.
The Brains estate, which it acquired in February, has performed well since reopening, it said, with trading trends mirroring those of the core estate. Accommodation sales have been "excellent", benefitting from restrictions on international travel and growth in staycations.
Marston's said that between 12 April - when outdoor hospitality reopened - and 24 July, total sales were at 88% of 2019 levels, with food at 92% and drink at 82%. Between 12 April and 16 May, total sales were at 77% of 2019 levels, with food at 59% and drink at 89%.
Chief executive officer Ralph Findlay said: "The tone of Government messaging will be an important influence on consumer confidence. At present, the message is one of caution. We believe that a Government review of the business rates system is long overdue and that VAT reduction should be permanent since the hospitality industry remains one of the most heavily taxed sectors.
"This would assist an industry that has been hit hard and aid hospitality's employment and development of young workers which will be a key part of the UK's economic recovery.
"Despite these challenges the role that the pub plays in the social fabric and culture of Britain as demonstrated by the pent-up demand and the rapid return of customers, is needed as never before, and therefore we are confident in our future."
The government made a temporary cut to VAT for restaurants, cafes and hotels to 5% from 20% in July 2020.
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10 Lower Thames St,
London EC3R 6EN