Sales up at Marston's managed pubs
Marston's has revealed a 1.4% increase in like-for-like sales at its managed pubs.
The company, which has embarked on an ambitious new build plan, said revenue had seen a slight increase of 0.6% to £309.2m and profit before tax and exceptional items had grown incrementally by 0.4% in the period to £27.8m, up from £27.7m for the 26 weeks to 3 April.
Underlying profit was slightly ahead by 0.2% at £65.5m, up from £65.4m.
Sales at the Marston's Beer Company improved by 8.6% and operating profit at the brewing division grew by 1.4%.
Ralph Findlay, chief executive at Marston's, said: "We are pleased with the encouraging performance of the business in the first half year.
"The economic environment remains challenging, but there are two key areas that provide the basis for continuing out performance in this market: our new-build programme for large managed pub restaurants; and the introduction of innovative agreements in our tenanted and leased pub estate."
Findlay added that recent trading had been in line with expectations, with a 1.2% hike in like-for-like sales at its managed houses for the six weeks to 15 May and that trends in Marston's Pub Company and in Marston's Beer Company were consistent with the half year.
New build programme
Commenting on its new build rollout of managed houses, Marston's said it was seeing sustainable high returns on its investment.
It said the current trend for revenue and returns was slightly ahead of its targets — which were £20,000 per week for revenue and 15% ebitda return on capital.
The like-for-like sales performance of 30 similar pub restaurants that have been opened in the past five years had increased by 4.5% in the first half - which Marston's said was, "ahead of the average for the division".
Marston's aims to build 60 of these new pub-restaurants in the next three years, funded via last year's £165.6m rights issue last year. It plans to open 15 this financial year and to date has opened eight.
To date we have opened eight new pub-restaurants located in Aylesbury, Ashbourne, Caterham, Daventry, Dover, Killingworth, Newark, and Sittingbourne. We are also on site in all of the remaining seven locations.
