Marston's upbeat despite headwinds

5th Oct 2011 07:09

Pubs group Marston's said trading momentum for the year has been encouraging, despite the difficult trading environment. Earnings before tax and exceptional items are in line with company expectations, with improvement in all trading divisions, it said in a company update.In Marston's Inns and Taverns, its managed pubs division, like-for-like sales increased 2.9% from last year, including food like-for-like sales growth of 5% and like-for-like wet sales growth of 1.8%.Like-for-like sales for the 10 weeks to 1 October 2011 were up 2.9%. Food, which now accounts for 42% of total sales, saw a 2% increase on last year. Margins are slightly ahead of last year.In Marston's Pub Company, its tenanted and leased pubs division, like-for-like profits are estimated to be 0.6% ahead of last year. In its beer company, its own-brewed beer volumes rose 2% from last year, outperforming an ale market, which was down 6%.Chief executive Ralph Findlay said, "We have been very encouraged by the performance of all areas of our business this year. The objectives of our clearly defined strategy are sustainable growth, higher investment returns, and reduced gearing."Net debt and cashflow are both in line with company expectations.---cj