Marston's PLC Trading update (6975T)
July 22 2015 - 2:00AM
UK Regulatory
TIDMMARS
RNS Number : 6975T
Marston's PLC
22 July 2015
22 July 2015
MARSTON'S PLC
TRADING UPDATE
41 weeks to 18 July 2015
Marston's PLC issues the following Trading Update for the 41
weeks to 18 July 2015.
Trading
We have continued to make profitable progress in line with our
expectations.
In Destination and Premium, like-for-like sales for the 41 week
period were 1.7% ahead of last year, including like-for-like food
sales growth of 1.6% and like-for-like wet sales growth of 1.6%. In
the last 10 weeks of the period, like-for-like sales are up 2.0%.
Operating margin is slightly above last year and we remain on track
to complete 25 new-build pub restaurants in the current financial
year.
In Taverns, like-for-like sales for the 41 week period were 1.7%
ahead of last year and in the last 10 weeks of the period,
like-for-like sales were up 2.0%. Our franchise business continues
to perform strongly and now operates in around 550 pubs.
In Leased, profits for the 41 week period are estimated to be in
line with last year. Average profit per pub was up 4%, reflecting
our higher quality leased estate.
In Brewing, own-brewed beer volumes, excluding Thwaites, were up
around 4% compared to last year. Including Thwaites, own-brewed
beer volumes are up 10%.
Net debt and cash flow are in line with expectations.
The recently announced Government plans to introduce a mandatory
Living Wage by 2020 are consistent with our expectation that the
gap between the National Minimum Wage and the Living Wage would be
closed over time. The additional cost of meeting the higher target
of GBP9 per hour by 2020 will mean that wage costs will be modestly
greater than we had expected, but the impact compared to our plans
is mitigated by the fact that we had anticipated increases above
the rate of inflation, and the lower rate of corporation tax from
2017. Our view remains that Government should prioritise taxation
and business rate reductions to reduce the cost of doing business
and increase consumer confidence.
Commenting, Ralph Findlay, Chief Executive Officer said:
"Our investment in new-build pub-restaurants and premium pubs is
in line with our plans and we have seen some of our most successful
openings to date this year. We have also opened three lodges, and
expect this rate of development to increase in 2016. We have good
visibility over our site pipeline and remain focused on securing
further good sites for our future growth. These investments,
together with the disposal of smaller wet-led pubs and the growth
of franchises, have successfully transformed our business over the
last three years.
"In brewing, the post-acquisition integration of Thwaites'
brewing business is now complete and has gone well. Our strategy is
well-suited to leveraging market growth in local, premium and craft
beers, and the increasing importance of the off-trade."
Forthcoming Events
Please find below the forthcoming reporting dates for the Group,
which are also available on the investor calendar on our website,
www.marstons.co.uk/investors
Year-end trading statement 14 October 2015
2015 Preliminary results 26 November 2015
2016 Interim Results 18 May 2016
2016 Preliminary results 24 November 2016
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 around 1,600 pubs situated nationally,
comprising managed, franchised and leased pubs.
-- It is the UK's leading brewer of premium cask and bottled
ales, including Marston's Pedigree, Thwaites Wainwright, Lancaster
Bomber and Hobgoblin. The beer portfolio also includes Banks's,
Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers.
-- Marston's employs around 13,000 people.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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