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- Marston’s expects to report net debt for the year ending September of approximately £885m.
- In July it completed the sale of its stake in Carlsberg Marston’s Brewing Company.
Marston’s reduced its debt by around £300m last year thanks to healthy pub trading and the sale of its stake in a brewing business.
The hotel chain, which operates more than 1,300 pubs across the UK, expects to report net debt for the year ending September 28 of around £885m.
In July it completed the £206 million sale of its 40 per cent stake in Carlsberg Marston’s Brewing Company, ending a 190-year involvement in brewing beer for the Wolverhampton-based company.
Lower liabilities: Marston’s said its debt was reduced by around £300m last year thanks to healthy pub trading and the sale of its stake in a brewing company.
Marston’s said the deal would also allow it to focus on being a pub-focused business, while still benefiting from its brand distribution deal with CMBC.
In addition to this, the group sold numerous pubs, including 18 to private equity-backed Admiral Taverns and 23 to Chester-based Red Oak Taverns.
The London-listed company further attributed its debt reduction to a dividend it received from CMBC and “strong trading performance” last year.
Retail sales at its managed and franchised pubs rose 5.8 per cent, supported by “encouraging” demand for food and “good momentum” in food and drink occasions.
During the latest quarter, like-for-like sales rose 3.8 per cent despite much of England experiencing record rainfall in September.
Following this, Marston’s still expects underlying pre-tax profits, excluding the sale of its stake in CMBC, for the recent financial year to be in line with consensus forecasts of £40.5m.
Justin Platt, CEO of Marston’s, said the “very satisfying” result “reflects the quality of the experiences we provide to our guests, as well as the continued focus and passion of our team.”
He added: “This performance, combined with our recent sale of CMBC, puts Marston’s in a strong position to create value for our shareholders as a focused pub business.”
Marston’s originally formed CMBC in October 2020 at the height of the Covid-19 pandemic when it sold a 40 per cent stake to Carlsberg’s UK business in return for an upfront payment of £273 million.
The partnership allowed the Danish brewing giant to sell its drinks, which include Tuborg Pilsner and Somersby Cider, alongside beers such as Hobgoblin and Wainwright in Marstons’ pubs.
Both sides believed it would also lead to greater productivity and cost savings and create one of Britain’s leading brewing companies.
Marston’s actions They rose 0.8 per cent to 43.2 pence on Wednesday morning, taking their gains over the past 12 months to 54 per cent.
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