Marston’s profits soar with pub group’s festive bookings already ahead of last year

Marston’s is gearing up for a bumper festive season, with Christmas bookings already ahead of 2023, as the pub group caps a year of strong profit growth.

The group reported adjusted pre-tax profits from continuing operations of £42.1m for the year ended September 28, up 64.5 per cent year-on-year and ahead of Peel Hunt’s forecast of £40.5 million.

Marston’s, which operates more than 1,300 pubs in the UK, said revenue rose 3 per cent to £898.6 million, and like-for-like sales rose 4.8 per cent, outperforming the market, thanks to the increase in food and beverage orders.

Marston’s has benefited from a shift in spending towards suburban and rural areas caused by more Britons working from home or moving out of city centres.

It has also been less affected than rivals such as Fuller by railway strikes and has minimized inflationary pressures by hedging gas and electricity costs.

Despite heavy snow and storms in recent weeks, the company has continued to enjoy healthy trading, with like-for-like sales up 2.1 per cent in the first eight weeks of this financial year.

Marston’s said its Christmas bookings were “ahead” of the previous year, driven by high booking rates in many locations, which it said “positions us well for a successful trading period during December”.

The Wolverhampton-based group also said the additional costs it will incur due to the recent budget are “manageable” relative to its short- and medium-term targets.

From April 2025, businesses will be required to pay a 15 per cent National Insurance levy on staff salaries over £5,000, instead of the current 13.8 per cent tax on salaries over £9,100. pounds sterling.

At the same time, those aged 21 and over will see their minimum hourly wage increase by 6.7 per cent to £12.21, while the minimum wage for 18-20 year olds will rise by 16.3 per cent to £12.21. 10 per hour.

Marston’s significantly strengthened its balance sheet last year by selling its 40 per cent stake in Carlsberg Marston’s Brewing Company, helping its net debts fall by around £300m to £883.7m.

Justin Platt, CEO of Marston’s, said: ‘2024 has been a defining year for Marston’s as we begin an exciting new chapter as a leading pure-play hospitality business.

“The sale of our stake in CMBC has been transformative, allowing us to significantly reduce debt, increase our flexibility and focus on what we do best – running great local pubs.”

CMBC was founded in 2020 after Marston’s merged its brewing business with Carlsberg’s UK division in return for a cash payment of up to £273m.

Marston’s actions They rose 6.7 per cent to 42.95 pence on Tuesday morning, taking their gains to about 37 per cent over the past year.

Julie Palmer, partner at Begbies Traynor, said: “With a strong start and a continued focus on debt reduction and operational efficiency, the group is entering 2025 with a solid foundation for long-term sustainable growth.

“It’s a tough environment for UK pub operators, but Marston’s has every reason to toast to this year’s successes and hopefully look forward to more in the next.”