TIDMMARS
RNS Number : 8401P
Marston's PLC
15 October 2019
15 October 2019
MARSTON'S PLC
YEAR END TRADING UPDATE
Marston's PLC ("the Group") issues the following Trading Update
for the year ended 28 September 2019. The preliminary results will
be announced on 27 November 2019.
Group turnover was up 3% to GBP1.2bn. We anticipate reporting
EBITDA broadly flat year on year and underlying profit before tax
of around GBP101 million with higher operating profits in our
Taverns and Beer businesses offset by lower earnings in Destination
and Premium.
Total pub sales increased 3%, including like-for-like sales
growth of 0.8% and the contribution from our pub expansion
programme. In the most recent 10 weeks, like-for-like sales were up
1.9%.
Taverns: against a strong comparative year our wet-led Taverns
pubs performed strongly with managed and franchised like-for-like
sales growth of 1.9% including growth of 5.4% in the last 10
weeks.
Destination and Premium. Like-for-like sales were 0.1% ahead of
last year, reflecting stronger drink sales offset by lower food
sales. Premium Pubs and Bars performed well with growth in Pitcher
& Piano, Revere Bar and Revere Country. Operating margins will
be below last year principally reflecting increased margin
investment and higher labour costs as a percentage of sales.
Marston's Beer Company: Total volumes were up 1% for the period,
building on an outstanding year for brewing last year.
Net debt for the year ended in line with our expectations at
GBP1,399 million. As highlighted at the Interims, we increased
stock levels as part of our Brexit-preparedness planning. We are
confident that the Group is as prepared as it can be for a
potential no-deal Brexit on 31(st) October and we have implemented
our contingency plans to ensure we can best service our customers
over the key Christmas trading period.
2020 Outlook
In 2020, as previously highlighted, the 53(rd) trading week will
offset the impact of the step-up in securitised interest (which
reverses by c GBP3m in 2021). Following a review of our operational
plans for 2020 we are proposing to invest an additional GBP2-3
million in pub training, localised pub team incentive initiatives
and digital marketing investment. We believe these actions are
expected to improve the quality and momentum of our pub business
over the medium term.
In addition, we are seeking to accelerate our stated debt
reduction target of GBP200 million by 2023. To that end we are
increasing our disposals guidance from GBP40 million to GBP70
million for the current financial year.
We therefore expect underlying profit before tax in 2020 to be
at a similar level to 2019, reflecting growth in underlying
operating profits offset by increased disposal activity, additional
pub investment and higher interest charges. We will expand on the
positive initiatives described above, together with the impact of
the new lease accounting standard at the preliminary results in
November.
The guidance above does not reflect the impact of the new IFRS16
lease accounting standard, details of which we shall provide at the
preliminary results in November.
Commenting, Ralph Findlay, Chief Executive Officer, said:
'Our drinks businesses have performed well, achieving further
growth against an exceptionally strong 2018. Wet-led pubs have led
the charge continuing their positive trajectory and food pubs have
achieved modest sales growth.
"Operationally, we remain focused on further improving our
proposition and plan to make additional investment in both our pub
teams and digital marketing in the forthcoming year.
"Our principal focus is on reducing our net debt by GBP200
million and creating a high quality business that is cash
generative after dividends and capital expenditure. We are making
encouraging progress and have decided to increase the pace of our
disposal programme this year to accelerate the achievement of this
target."
Forthcoming Events
Please find below the forthcoming reporting dates for the Group,
which are also available on the investor calendar on our website
-
2019 Preliminary results 27 November 2019
2020 Interim results 13 May 2020
2020 Preliminary results 25 November 2020
ENQUIRIES:
Marston's PLC Tel: 01902 329516 Instinctif Partners Tel: 020
7457 2020
Ralph Findlay, Chief Executive Officer Justine Warren
Andrew Andrea, Chief Financial Officer Matthew Smallwood
NOTES TO EDITORS
-- Marston's is a leading pub operator and independent brewer.
-- It has an estate of 1,539 pubs situated nationally,
comprising managed, franchised and leased pubs.
-- Marston's is the UK's leading brewer of premium cask and
packaged ales, with a portfolio including Marston's Pedigree,
Wainwright, Hobgoblin, Young's, Bombardier, Lancaster Bomber,
Banks's, Jennings, Wychwood, Ringwood, Brakspear, Courage, McEwan's
and Mansfield beers. Marston's also has a range of licensed brands
including Estrella Damm, Warsteiner, Erdinger, Kirin, Shipyard and
Founders.
-- Marston's employs around 14,000 people.
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END
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