Marston's PLC Disposal (0617S)

TIDMMARS

RNS Number : 0617S

Marston's PLC

04 November 2019

4 November 2019

Marston's PLC

Disposal

Marston's PLC ("Marston's" or "the Group") is pleased to announce it has reached agreement for the disposal of 137 pubs for GBP44.9 million to Admiral Taverns. This disposal is in line with Marston's plans to reduce its debt in part through the disposal of certain non-core assets. The assets being disposed of are smaller wet-led leased, tenanted and franchised pubs. The deal is expected to complete before the end of November.

The pubs being disposed of contributed EBITDA of GBP4.8 million and operating profit of GBP3.7 million for the year to 28 September 2019. The pubs have a book value of GBP62.6 million. The disposal will result in average profit per pub in the retained estate increasing by around 7% and return on capital improving by 0.2% post the transaction.

Commenting, Ralph Findlay, Chief Executive Officer, said:

"We are making good progress with our plans to reduce our net debt by GBP200 million by 2023 in part through the disposal of non-core assets. We are encouraged by the level of market interest that this portfolio of pubs has attracted. This further underpins our confidence in achieving the accelerated GBP70 million disposal proceeds target that we have set ourselves for the current year. We remain focused on our stated objective of reducing our net debt by GBP200 million by 2023 or earlier, and thereafter operating a high quality business generating consistent net cashflow, after dividends, of at least GBP50 million per annum."

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 currently has an estate of 1,537 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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November 04, 2019 02:00 ET (07:00 GMT)

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