Marston’s Completes Transformation Programme
Marston’s, the UK brewer and pub operator, has increased underlying profit before tax by 10.2% to £91.5 million for 2015, principally due to the contribution from new pub-restaurants and a strong performance from the Brewing division. Underlying group revenue rose by 7% to £845.5 million reflecting like-for-like growth in the pubs, the impact of new openings, growth in Marston’s beer brands, and the acquisition of Thwaites’ beer business.
The group achieved profit growth in all trading segments despite disposals. On a statutory basis profit before tax was £31.3 million against a loss of £59.2 million in 2014.
Employing around 13,500 people, Marston’s has an estate of around 1,600 pubs situated nationally, comprising managed, franchised and leased pubs. It is the UK’s leading brewer of premium cask and bottled ales, including Marston’s Pedigree and Hobgoblin. The portfolio also includes Banks’s, Jennings, Wychwood, Ringwood, Brakspear, Thwaites and Mansfield beers.
Since 2013, Marston’s have reduced the size of the pub estate from 2,050 pubs to a core 1,600 pubs which now substantially completes the disposal programme. Importantly, average profit per pub, a good indicator of pub quality, has increased to around £100,000 per pub, up around 40% since 2012.
Ralph Findlay, chief executive of Marston’s, comments: “The three year transformation of our pub portfolio towards an optimised estate is 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. We have great people and a growing portfolio of leading beer brands where our focus on premium and local provenance continues to serve us well.”
He continues: “Looking forward, we remain on track to open at least 20 new-build pubs this year and have in place a carefully selected site pipeline in key regional locations for 2016 and beyond. 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.”
Total Brewing revenue increased by 27.6% to £169.1 million during 2015, reflecting the benefits of the Thwaites acquisition. Underlying operating profit increased by 19.0% to £20.7 million.
