Marston’s slumps to £105.5m pre-tax loss as restrictions hit business
Marston’s fell to a £105.5m pre-tax loss in the 26 weeks to April 3, as coronavirus-led lockdown restrictions over the winter hit the pub group hard.
Revenues during the six month period to April 3 dropped £343.3m to just £55.1m, although the balance sheet was boosted by £291 million from the sale of Marston’s brewing business.
Despite the loss, bosses said they were hopeful for a strong summer as restrictions ease and have seen early indications that the future for the business is bright.
Since reopening to customers for outdoors drinking last month – and subsequently welcoming them indoors this week – bosses said sales have been at 80 per cent of pre-Covid levels.
As a result, profits since reopening are likely to be flat, reversing the heavy losses suffered during the year, as the business takes advantage of the continued business rates and VAT relief.
Marston’s said 710 pubs were reopened for outdoor trading on April 12 in England, with 66 more on April 26, whilst 145 were opened in Wales and Scotland on the same day.
But bosses said more normalised levels of trading will not be achieved until social distancing restrictions are removed next month under the government’s road map.
Chief executive Ralph Findlay said: “Whilst still early days, trading has been encouraging since we were permitted to open our doors for outdoor trading last month.”
During last autumn the company invested £2 million in outdoor seating and said it is hopeful the summer will be successful with strong demand for UK staycations.
Tenants continue to be supported through rent waivers and grant relief assistance, the company added.