Marston's serves up tasty results as pre-tax profit and revenue climb

Shares in Marston's rose over 2% early on Thursday (24 November), after the brewer and pub operator reported an increase in pre-tax profits for the full year amid solid trading conditions.

In the year to 1 October, the FTSE 250-listed group posted statutory profits before tax of £80.8m ($100.2m), compared to the £31.3m recorded in the previous year, while revenue rose to £937.3m from £878.6m.

On an underlying basis, operating profits rose 4% from the corresponding period in 2015 to £172.7m, while operating profits and revenue were both 7% higher year-on-year to £98m and £905.8m respectively.

Marston's said it recorded profit growth in all trading segments, helped by an increase in average profit per pub, which was 8% higher than in the previous year and has grown approximately 50% from 2012.

The profit the company generates from its leased pubs also increased over the 12-month period, rising 3% from 2015.

The Wolverhampton-based group added it has made good progress across both of its division, with 22 new pubs and bars completed during the course of the year and six new lodges opened, taking the total capacity of its estate to over 950 rooms.

On the brewing front, Marston's said its portfolio outperformed the market during the financial year, as volumes rose 13% and its market share of premium bottled and premium cask ales increased to 27% and 20% respectively.

Group chief executive Ralph Findlay indicated trading has been solid in the first few weeks of the new financial year and the group has not seen any discernible change to the trends experienced in 2016.

"The majority of our major product cost lines are contracted for 2017 and well into 2018," he added.

"We have a high quality pub and beer business which is displaying positive momentum and is consistently outperforming the market. We believe that, despite some continuing market headwinds, our expansion plans for new pub-restaurants, lodges and Revere bars will further enhance our ability to deliver attractive returns."