Marstons profits rise as managed pubs shine

2nd Dec 2010 07:07

Pub group and brewer Marston's posted a rise in profits despite tough trading in the year to October 2, helped by its shift towards food-oriented pubs.The company, which operates centrally managed pubs such as the Pitcher and Piano chain as well as leasing premises to landlords, saw revenues climb by 0.9% from the previous year to £650.7m, with pre-tax profits climbing to £73.5m from £70.3m.At Marston's Inns and Taverns, the managed division, total revenues climbed by 1.6% to £373.8m and by 1.7% on a like-for-like basis, stripping out the impact of new openings and closures. Marston's said more customers came in to eat, tempted by an average spend per head on food of just £6. Lower food and utility costs and tight labour cost control helped lift margins by 1%.Things are tougher at the tenanted division, Marston's Pub Company. Total revenues decreased by 2.8% to £170.8m. Marston's is planning to dispose of about 60 pubs from the division in the next year-and-a-half. The division's estate currently numbers 1,664 premises.At Marston's Beer Company, the brewing division, total revenues climbed by 4.5% to £106.1m.Trends seen in the year to October 2 have been continuing. In the eight weeks to November 2 managed sales are up by 3% on a like-for-like basis from the same period a year ago, with strong food sales boosting the numbers, but tenanted and leased profits are estimated to be down by 1.5%.'We have adapted well to market conditions and trends,' said chief executive Ralph Findlay. 'We are benefiting from our focused, differentiated strategy as demonstrated by our robust results in 2010 and a strong start to the new financial year.'