Marston's serves up solid interims thanks to pub estate restructuring

14th May 2015 14:56

Pub operator Marston's reported a narrowed pre-tax interim loss on the back of improved sales, proving the efficiency of its business plan.The FTSE 250 group said its pre-tax loss in the six months to 4 April halved year-on-year to £27.5m on revenue up 3% to £384.5m.Underlying profits before tax climbed 2% to £29.6m, despite disposals and anticipated pension costs.As part of its plan to restructure its business by selling under-performing pubs and replacing them with new ones, the brewer of Pedigree and Hobgoblin ale said it made proceeds of £26.4m from the sale of 65 in its Taverns estate.The group said it was selling pubs "which simply haven't got the capacity to offer customers what they need today".However, a £39m charge on external estate valuation, an £8.6m loss related to interest swaps and disposal costs of approximately £3m weighed on profit.The Wolverhampton-based pub operator said it expected to dispose of approximately 200 pubs in the Taverns estate in the remainder of the year, which should generate proceeds of approximately £60m."We expect to complete the majority of our disposals programme this year, and our momentum gives us confidence of achieving further progress in the future," group chief executive Ralph Findlay said.Marston's confirmed plans to open 25 pub-restaurants in its Destination and Premium estates, adding it plans to develop five lodges per year from 2016, as well as opening two Revere or Pitcher & Piano locations once a year.The brewer said new pubs had contributed to the increase in revenue, with like-for-like sales growth of 1.5% in Destination and Premium pubs and 1.4% in its Taverns pubs, while within its brewing division, sales of Hobgoblin jumped 11%.For the five weeks to 9 May, the group's like-for-like sales in its Managed Pubs and Taverns rose 2% and 2.8% respectively.Analysts at Shore Capital and Numis said the results meant pre-tax profit were line with consensus estimates of around £92m for the full-year.Marston's shares were up 0.55% to 164.30p at 15:47 on Thursday.