Pubs group Marston’s cheers record result after summer trading recovery

● Heatwave and World Cup helped lift trading after challenging start to the year

Marston’s, the pubs and brewing group with a growing presence in Scotland, has overcome “unseasonal weather extremes” to deliver a record annual profits haul.

The firm said in an end-ofyear trading update that it is expecting to report underlying pre-tax profits of about £104 million for the year to 29 September, which would be up on the £100.1m posted the previous year.

The Pitcher & Piano owner noted that trading was boosted by a jump in drinks sales during the World Cup football tournament and the summer heatwave, which helped likefor-like sales rise 0.6 per cent in its managed and franchised pubs over the year.

Pub sales were up 1.6 per cent in the final ten weeks, while the group said its brewing business was also given a fil- lip over the summer, as sales by volume jumped 47 per cent.

The strong summer takings helped make up for tougher trading earlier in the year when business was hit by the Beast from the East big freeze that swept much of the country.

The group is expecting to report record revenues of more than £1.1 billion – up by some 15 per cent, year-on-year.

Chief executive Ralph Findlay said: “2018 was a strong year for our taverns and beer businesses. We have seen clear benefit from our balanced portfolio having achieved good growth in wet-led pubs and from brewing, maximising the trading opportunities provided by the good summer weather and World Cup.

“Although trading in destination food-led pubs was weaker, this predominantly reflects issues beyond our control relating to unseasonal weather extremes and the World Cup.

“Howeverweareencouraged that our dining pubs are now seeing improving momentum and we expect to make further progress in 2019.”

Alasdair Ronald, senior investment manager at Brewin Dolphin Scotland, said: “The announcement from Marston’s provided no great surprises – the trading update in July confirmed that, after a first half adversely affected by the Beast from the East, the second half started well, helped by good weather and the World Cup.

“Marston’s pubs are good quality, it has enjoyed progress in its new-build programme, and the operating environment for pub companies with a focus on food, as well as drink, remains favourable.

“Negatives include cost pressures, the risk of a decline in discretionary expenditure if Brexit negotiations prove unsuccessful, and the possibility of a dividend cut.”