New-build pubs and food drive Marston's growth
Marston's programme of building new pubs with a focus on food has helped deliver a 4.8% rise in revenue to £682.2m for the year to 1 October 2011, with underlying pre-tax profit up 9.4% to £80.4m.
Marston's Inns and Taverns, the managed arm of its estate, saw like-for-like sales up 2.9% with underlying operating margins up 0.7% and average profit per pub up 10%. Meanwhile, the tenanted and leased division, Marston's pub company, recorded an increase in operating profit of 0.6%.
And its brewing division, Marston's Beer Company, saw revenue rise 0.4% and operating profit up 0.6% with group ale volumes up 2%.
The company established 19 new-build managed pubs over the period, slightly ahead of its target, and said it was on track to complete around 25 new-build sites in 2012.
Food like-for-like sales across the managed estate rose 5%, representing 42% of sales. It now serves over 26 million meals sold in managed pubs at an average spend per head of £6.10.
Ralph Findlay, chief executive, said: "We achieved impressive sales and profit growth in each of our businesses despite the challenging consumer environment. Customers are looking for affordable treats, and our focus on value, service and quality in a traditional pub environment has proved successful. Our new-build pub restaurants, the introduction of franchise agreements in around 350 pubs, and increased commercial support to our tenanted and free trade customers are all contributing to the achievement of our key objectives.
"The successful implementation of our strategy will mean that we will create around 1,000 new jobs in 2012. Pubs make a real contribution to employment, and the Government can help by recognising that its policies on taxation, and beer duty in particular, are damaging to pubs, brewers and jobs."
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By Neil Gerrard
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