Pub operator Marston’s saw turnover and profit drop in the first half of its financial year, as strong food and real ale sales failed to offset the effects of faltering consumer confidence and additional legislation and tax.
Despite food sales now representing 37% of total retail sales at the group’s managed pubs (compared with just 23% in 2001) after growth of 1.3% year-on-year, and real ale sales jumping 19% at its tenanted and leased division, both turnover and profit in the period were down.
In the 26 weeks ended 4 April, turnover slipped 2.8% year-on-year to £307.5m (2008: £316.4m). Pre-tax profit, including a write-down of £12m on a credit swap, tumbled 20.9% to £27.7m (2208: £35m). Net debt at 4 April was £1.297b (2008: £1.27b).
Ralph Findlay, chief executive, said: “We remain cautious of the weak economy, but we are encouraged by the modest improvement in trading since mid-February. We remain well-positioned to benefit from any sustained up-turn in the trading environment.”
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By Chris Druce
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