Business is improving, claims Marston's

Marston's, the Midlands-based brewer and pub operator, said it was seeing improving trends across its three businesses in the last few weeks of its latest financial year.

In a trading update issued today the group highlighted like-for-like sales in its managed pub estate up 1.7 per cent in the nine week period to October 2.

Like-for-like food sales were up 2.5 per cent, with like-for-like wet sales up 1.4 per cent. Marston's said its operating margins over the period were also improving, thanks in part to lower utility costs and the sale of 17 lower margin leasehold sites.

Across its tenanted estate, Marston's said like-for-like profits were down by 3.7 per cent, versus the 4.5 per cent dip reported when it announced its interim results back in May.

Marston's said 104 leased and tenanted pubs were on Marston's new Retail Agreements, with 500 expected to be on such deals by 2013. It added that 86 per cent of its estate was on substantive agreements.

At the group's brewing operation Marston's said it expected both turnover and operating profitability to be "slightly ahead" of last year, when turnover was £101.5m and operating profits were £16m.

Net debt and operating cashflow were described as being within the group's expectation, and its pub building programme was "on track", with 15 pubs built in the last financial year and a further 45 sites due to be developed by the end of the 2012 financial year.

"We have seen improving trends in each division and made good progress in implementing our strategy," the group concluded.

"Our focus on value for money, high quality pubs, food and local beers places us in a strong position to meet the challenges ahead."

Marston's announces its annual results on December 2.