Strong full year growth on tap for Marston's

The FTSE 250 company, which runs around 1,600 pubs and brews cask and bottled ales, posted preliminary results for the 52 weeks to 3 October showing underlying group revenue rose to £845.5m.

Underlying profit before tax bubbled 10% higher to £91.5m as the company enjoyed profit growth in all its trading areas, helped by the disposal of a number of lower-end pubs, which in turn helped generate £69.6m of asset sales.

Including disposals and other exceptional items, statutory profit before tax bounced back from the previous year's loss, rising by £90.5m to £31.3m.

Marston’s also said the transformation of its pub estate was progressing, with 25 new pubs and around 550 now converted from taverns to franchises. It said each pub is now returning an average profit of £100k, and there are at least another 20 new-build pubs on the way in the new financial year.

The beer business continued to outperform the market with volumes up 15%.

Chief executive Ralph Findlay toasted the three-year transformation of Marston's pub portfolio, which he said was now largely complete.

“We approach 2016 with our business successfully positioned at the forefront of industry trends with high quality, well-invested pub assets which are fit for the future,” he said.

"Whilst new-build, food-led pubs remain our core growth driver, we have evolved our strategy to capitalise upon other opportunities for expansion where we see attractive returns potential.

"At this early stage of the current year trading has begun well and we look forward to building on this momentum over the months ahead to deliver another year of good progress for the group."