Brewer and pub operator Marston’s today said it was “on track” to meet its expectations for the full year after seeing a modest rise in sales in the past eight weeks.
In a half-year trading update, the company said its results would benefit from the timing of Easter, which fell in the first half of its financial year in 2008 and in the second half this year.
At Marston's Inns & Taverns, the managed pub division, like-for-like sales for the 27 weeks and two days to 13 April were 1.8% below last year.
However, over the past eight weeks and two days to 13 April, like-for-like sales increased by 3.1%.
The company attributed this rise to improved sales of cask ale and value for money offers on food.
Looking ahead, Marston’s said: “Although we remain cautious because of the weak economy and generally challenging trading environment, we are well positioned to benefit from longer term trends in casual dining and demand for differentiated offers.”
Marston’s revealed that its capital expenditure would be cut to approximately £50m in 2009 (2008: £117m), as the company tries to reduce its debt.
Commenting on the results, Mark Brumby, leisure analyst at Blue Oar Securities, said: “Whilst the environment is difficult, Marston’s has reported ‘improved’ trading. This shouldn’t be over-egged but the world has clearly not stopped spinning and the on-trade’s quality operators will continue to outperform.”
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By Daniel Thomas
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