Diluted earnings at Marston’s

Pub group Marston’s has seen weaker food sales weigh down on its annual profits.

The pub operator and brewer, which has a growing presence in Scotland with its family-focused venues, said it expects to deliver £101 million in underlying pre-tax profits for the year to 28 September, down from £104m last year.

Ralph Findlay, chief executive officer of the Wolverhampton-based group, said its food-focused pubs delivered only “modest” growth, although this was offset by stronger beer sales.

He hailed “further growth” in the company’s drinks business, as its drink-orientated Taverns business “performed strongly”.

Group sales rose 3 per cent to £1.2 billion over the year, while the company saw higher operating profits in the taverns and brewing arms.

The company said that total pub sales also increased 3 per cent, on the back of its pub expansion programme and like-for-like sales growth of 0.8 per cent. Its beer-led pubs reported 1.9 per cent like-forlike annual growth, boosted by 5.4 per cent growth in the past ten weeks.

Meanwhile, the company’s brewing business reported a 1 per cent rise on sales volumes against a strong 2018 period.

Sales in Marston’s premium and food-focused sites reported only 0.1 per cent like-forlike growth, as stronger drink sales were offset by lower food takings.

Marston’s added that it is “as prepared as it can be” for a potential no-deal Brexit and has implemented “contingency plans” to help it during the key Christmas period.

Findlay added: “Operationally, we remain focused on further improving our proposition and plan to make additional investment in both our pub teams and digital marketing. Our principal focus is on reducing our net debt by £200m and creating a highquality business that is cash generative after dividends and capital expenditure.”