Marston's trading in line with expectations in 10 months to July

22nd Jul 2015 09:29

(ShareCast News) - Pub operator and brewing group Marston's said trading in the 10 months to July was positive and in line with expectations.In a trading update released on Wednesday, the FSTE 250 group said in the 41 weeks to 18 July, like-for-like sales increased 1.7% year-on-year, with like-for-like food sales and like-for-like wet sales both rising 1.6% in the period.In the last 10 weeks of the period, like-for-like sales were 2% higher than in the corresponding period in 2014, Marston's said, adding operating margin was "slightly above" last year's level and it remained on track to complete 25 new-build pub restaurants in the current financial year.The taverns business saw like-for-like sales climb 1.7% year-on-year over 10 months, rising 2% in the last 10 weeks of the period, while the leased arm saw the average profit per pub rise 4%.In the brewing division, own-brewed beer volumes, excluding Thwaites, were up approximately 4% compared to last year, while including Thwaites, they rose 10%.The group added that the recently announced plans to introduce a mandatory living wage by 2020 will mean that wage costs will be "moderately" higher than expected."Our investment in new-build pub-restaurants and premium pubs is in line with our plans and we have seen some of our most successful openings to date this year," said group chief executive Ralph Findlay."We have good visibility over our site pipeline and remain focused on securing further good sites for our future growth."Analysts at N+1 Singer described the update as "reassuring" and in line with market expectations."Shares should react positively to Wednesday's update and we reinforce our 'buy' on growth and yield grounds as look to take down overweight position in sector," they said in a note.Marston's shares were up 1.67% to 157.69p at 0848 BST.