Marston's revenues flow to record levels in 'outstanding year'

Marston’s reported record annual sales on Wednesday, though profits dived due to a revaluation of the pub chain’s estate.

For the 12-months ended 31 August statutory revenue grew by 13% to £1.14bn and statutory profit before tax dropped by 46% to £54.3m, though underlying pretax profit increased by 4% to £104m.

An external estate valuation undertaken in the period resulted in a £39.8m charge to the statutory income statement, while a net revaluation increase of £8.6m was also recognised in the revaluation reserve in respect of property revaluations undertaken in the period.

Like-for-like sales increased by 0.6% as wet-led pubs outperformed those that prioritised food, with weather extremes and one-off events such as the World Cup leading to an “extraordinary year”.

Marston's kept its final dividend at 4.8p per share and had cash and cash equivalents of £41.4m, down from £54.6m at the same point last year.

Ralph Findlay, chief executive of Marston’s, said: "Marston's has performed well in a difficult market. Our balanced business model has stood us in good stead, delivering record sales and underlying profits with revenue exceeding £1.1 billion for the first time. Our Taverns wet-led community pubs and market-leading brewing business had an outstanding year."

Looking forward, the business remains cautious on its outlook given the nature of ongoing Brexit negotiations, but noted that risks were “manageable” as almost the entirety of its business lies in the UK.

Principle risks are therefor the sustained supply of food and drink from the continent, though the AIM traded company highlighted that alternative sources could be used.

"Macro-economic and political uncertainty is reflected in our capital plans this year. However, the outlook for good pubs and brewing remains attractive and Marston's is well placed to leverage the opportunity this presents with our high quality, well invested estate, leading brands and great people. We expect to make positive progress once again in the current financial year," said Findlay.

Marston’s shares were up 0.22% at 99.70p at 1019 GMT.