Marston’s: Revenues up as firm looks to get borrowing below £1bn by disposing non-core assets
Pub chain Marston’s said revenues grew during the preliminary year, but operating margins lay flat, as it dealt with the hangover of high inflation.
The dining and drinks operator, which has over 1,400 sites across the UK, posted a 9.1 per cent rise in revenues to £872.3m.
However, underlying operating profit excluding income from associates was £124.8m — up slightly from £115.4m in the same period last year.
The company said it is steaming ahead with plans to get borrowings below £1bn by 2026, which will see the firm dispose of non-core assets, such as pubs.
Marston’s said: “In 2023 we generated £55m of disposal proceeds (net of VAT) from the sale of non-core assets.”
“Following a further strategic review of the estate we are targeting around £50m in financial year 2024.”
Marston’s had a positive outlook for the year ahead with sales up 7.4 per cent compared to last year as the start of festive season begins
Marstson’s has also been bolstered by a rise in Christmas booking as corporate parties return to normality following disruptions from the pandemic over the past few years.
The firm will also welcome a new chief executive, Justin Platt, the former Lego-land boss, at the start of the new year.
It will mark the end of the reign of the current boss, Andrew Andrea.
William Rucker, chair of Marston’s, said: “We anticipate an improving outlook in which cost headwinds are largely abating, and like-for-like sales are up over seven per cent since the year end.
“This, together with the actions we have taken this year to drive further efficiencies, leave us confident that Marston’s remains well-placed to continue to outperform and to grow revenue, margin and profitability.”