Marston's set to expand despite recession

5th August 2009, 11:26am

Trading across Marston's pubs has continued to perform in line with expectations, with signs of further expansion over the next three years, according to the group's latest interim statement.

Group turnover was 1.9% below last year for the 43 week period compared to the 2.8% decline previously reported for the 26 weeks ended 4 April 2009.

In Marston's Inns and Taverns, the managed pub division, like-for-like sales in the 43 week period were 1.2% below last year. This reflects improved trading since March including like-for-like sales growth of 2.3% in the last 6 weeks to 1 August.

Food like-for-like sales continue to be strong, up by 2.2% in the 43 weeks and by 6.0% in the 6 weeks to 1 August. Food sales now represent approximately 38% of total retail sales.

Operating margin trends continue to be in line with those reported for the first half-year largely driven by tight cost controls; an easing of food input cost inflation; and the careful management of promotional offers, said the report.

Meanwhile in Marston's Beer Company brewed ale volumes increased by around 13%. Premium ale volumes increased by 31% and now represent 53% of the ale portfolio.

The group anticipates that approximately £140 million will be invested in developing around 60 new managed pubs over the next 3 years.

They are said to be making good progress with development already underway on sites in Caterham, Surrey; Ashbourne, Derbyshire; Aylesbury, Buckinghamshire; and shortly to commence on a site in Sittingbourne, Kent. By the end of the current financial year they expect development to have started on 9 sites and plan to open 15 new pubs in the next financial year.

A spokesperson for the group said: "Although we remain cautious because of the current challenging economic and trading environment, we are confident of meeting our expectations for the year. 

"We are encouraged by the robust performance of the business which reflects the high quality of our pubs; our value for money offers; the popularity of our ale brands; and the continued implementation of our stated approach. We have a differentiated strategy and, in our accelerated new build programme, a significant development opportunity from which we aim to deliver good and sustainable returns."

Related Articles:

• 15 Oct 2009 - Marston's offers free kids meals to celebrate new menu
• 01 Oct 2009 - Travelodge and Marston's join forces
• 20 Aug 2009 - London restaurants defy recession as openings rise 9%
• 18 Aug 2009 - Restaurant operators urged to control costs
• 18 Jun 2009 - Marston’s looks to raise £176m in rights issue
• 15 Apr 2009 - New group finance director at Marston's
• 05 Dec 2008 - Marston's sees profits slide 13%
• 20 Nov 2008 - Marston's award gaming contract
• 16 Oct 2008 - Marston's post disappointing results
• 29 Jul 2008 - Marston's trade 'resilient' in tough conditions

Click here to submit a comment!

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@eatoutmagazine.co.uk.