Marston's boosted by managed pubs

Marston's has reported recent trading has been "encouraging" due to the good summer weather rather than the World Cup.

Like-for-like sales at its managed Marston's Inns and Taverns division were 1.7% up on last year for the 43 weeks to 31 July.

Like-for-like food sales were up 2.5% and wet sales up 1.3% on a like-for-like basis. The good performance continued in the second half of the year with like-for-like sales in the 11 weeks to 31 July up by 2.7%.

"We have also achieved an estimated 0.6% increase in operating margin which we anticipate will be maintained for the rest of this financial year," it said.

Its new build programme is on track and it now has 11 sites open in with another four in the process. It expects to open a further 20 pub-restaurants in 2011.

"Performance in the new openings to date continues to be very encouraging with the run-rate for both turnover and returns ahead of our targets," it said.

Tenanted pubs​

Underlying profits at Marston's Pub Company, its tenanted and leased division, have continued to improve but like-for-like profits are estimated to be down 4% in the 43 weeks to 31 July.

"This compares favourably to the 4.5% decline reported in the Interim Results in May," it said.

Marston's now has 86% of its pubs let on substantive agreements and 88 have now signed up for its Retail Agreement with a target of 100 by the end of the financial year.

Its Retail Agreement is a quasi-franchise that pays licensees 20% to 28% of net takings, with Marston's in charge of EPoS, stock-taking, retail offer and costs, except staff. The agreement creates a "significantly large recruitment pool".

It has a target of 600 pubs switching to this agreement within three years.

At Marston's Beer Company, own brewed volumes were in line with last year against a beer market down around 6%. Premium ale volumes rose by 3%.

"Following the emergency Budget in June we remain cautious about the consequential impact on consumer confidence," it said.

"However, we are encouraged by our recent trading performance. Our focus on

value for money, high quality pubs and local beers combined with clearly defined strategies for each of our trading divisions place us in a strong position to meet the forthcoming challenges."