Marston's profits plunge despite better sales
Brewer and pubs chain Marston's reported a fall in annual profits today but said its focus on family-friendly, food-led pubs was paying off.
Bottoms up: Marston's profits fell despite sales boost.
The company, which has 2,200 pubs in England and Wales and brews cask ales including Pedigree and Hobgoblin, said recent trading had been encouraging after like-for-like sales in its managed pubs rose 3.1% in the last eight weeks.
This built on the recovery seen in the second half of the year to October 3, although annual pre-tax profits were still 13.5% lower at £70.3m.
Marston's said the improved sales trend reflected value-for-money offers and its F-Plan strategy, which has seen the company focus on 'food, families, females and forty/fifty somethings'.
With Marston's looking to capitalise on longer term trends towards more eating out, food sales now account for 38% of its revenues, up from 27% in 2004.
Having raised £165.5m from shareholders in a rights issue in July, Marston's intends to build 60 new pubs over the next three years, including around 15 sites next year.
Combined with increased availability of sites and favourable construction costs, Marston's said the building of a pub from scratch was often less risky than buying packages of existing pubs.
As well as 496 managed pubs including Marston's Tavern Table, Two for One and Pitcher & Piano, the company's estate features 1,688 tenanted and leased pubs.
It said operating profits for the division fell 7% to £81.8m, including around £3m of additional support costs for licensees. Average profit per pub reduced from £51,000 to £48,000, although Marston's said it was working to improve trading in weaker pubs and develop the estate as a whole.
In the brewing division, revenues increased 13.2% to £101.5m while underlying operating profits lifted 3.9% to £16m.
Marston's said its market-beating performance reflected its line up of strong national and regional ale brands, as well as high levels of marketing support, including Pedigree's branding as the 'official' beer of England cricket.
Most watched Money videos
- Mini Cooper SE: The British icon gets an all-electric makeover
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- A look inside the new Ineos Quartermaster off-road pickup truck
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Incredibly rare MG Metro 6R4 rally car sells for a record £425,500
- Introducing Britain's new sports car: The electric buggy Callum Skye
- Top Gear takes Jamiroquai's lead singer's Lamborghini for a spin
- Footage of the Peugeot fastback all-electric e-3008 range
- Kia's 372-mile compact electric SUV - and it could costs under £30k
- House prices rose in May, says Nationwide as wage growth...
- SHARE OF THE WEEK: Boost for British American Tobacco as...
- SMALL CAP MOVERS: Quadrise blooms on client win
- Savers piled £11.7bn into cash Isas in April - the...
- The consumer champion's guide to getting what you want:...
- Donald Trump sees more than £400m wiped off his fortune
- MARKET REPORT: JD Sports drags its feet as few spend big...
- INVESTING EXPLAINED: What you need to know about the...
- Eurozone inflation rose to higher-than-expected 2.6% last...
- Revolution Bars tells creditors to back restructuring or...
- VW Passat is 50 Not Out, says RAY MASSEY: But new version...
- Government sells £1.24bn in NatWest shares despite fears...
- Nationwide's £2.9bn takeover of Virgin Money probed by...
- How to buy great British shares - at a discount
- Soho House rejects takeover bid that would have seen it...
- JD Sports shares plummet as 'challenging market' puts a...
- ALEX BRUMMER: Don't trash energy security
- Vodafone completes sale of its Spanish operations for £4.3bn