TIDMMARS
RNS Number : 6604G
Marston's PLC
28 July 2021
28 July 2021
MARSTON'S PLC
("Marston's" or "the Group")
TRADING UPDATE
42 weeks to 24 July 2021
Significantly improved trading since 17 May, and better than our
expectations
Marston's PLC issues the following trading update for the 42
weeks to 24 July 2021.
As previously reported, the first half year was significantly
disrupted by the impact of the pandemic with all of the period
subject to either full closure or significant trading
restrictions.
In the second half year, pubs were permitted to reopen for
outdoor trading on 12 April in England and 26 April in Scotland and
Wales, and subsequently indoor trading was permitted across all of
the Group's pub estate from 17 May, albeit subject to the
continuance of various social distancing restrictions. This has
limited the number of customers we have been able to accommodate
indoors with the rule of six and no standing at the bar, for
example. The majority of restrictions were lifted on 19 July albeit
with cautionary guidance from the Government. We opened around 70%
of our pubs under outdoor trading restrictions and the Group's
entire estate of c 1,500 pubs has been open since 17 May.
Over 90% of Marston's pubs have outside trading areas and the
additional investment we made in our 'Inside Out' plans to enhance
our external trading areas in Autumn 2020 has positively impacted
trade since reopening in April. Looking ahead, these investments
should also enable us to benefit from increased outdoor trading in
early Spring and late Autumn.
In managed and franchised pubs our like-for-like trading
performance since 12 April, reported as a percentage of sales
relative to financial year 2019 (open sites only), is as
follows:
12 April- 17 May- 12 April-
16 May 24 July 24 July
Drink 89% 93% 92%
---------- --------- ----------
Food 59% 90% 82%
---------- --------- ----------
Total 77% 92% 88%
---------- --------- ----------
Food exc Carvery 62% 92% 85%
---------- --------- ----------
Total exc Carvery 79% 94% 90%
---------- --------- ----------
Since 17 May, overall sales have been encouraging, and better
than our expectations, with the stronger performance driven by a
combination of additional food covers, outdoor investment, warmer
weather and the benefit of the delayed Euro 2020 tournament. The
Brains estate, the operations of which acquired in February of this
year, has performed well since reopening, with trading trends
mirroring those of the core Marston's estate. Accommodation sales
have been excellent benefitting from restrictions on international
travel and the growth in staycation holidays.
We have provided like-for-like data including and excluding our
69 Carvery sites, as these inevitably faced particular challenges
due to restrictions which prevented self-service, a fundamental
component of the Carvery offer. Like-for-like sales in Carvery in
the period since 12 April were 73% of their 2019 level.
In the first week of trading since restrictions were lifted on
19 July, we have seen a modest uplift in sales. Whilst this is
clearly encouraging, it is too early to extrapolate any meaningful
trends at this stage.
We have previously reported that we achieved break even from a
cash flow and earnings perspective in April, and as a consequence
of the easing of restrictions we generated positive earnings and
cash flow in both May and June despite operating at around 70%
capacity for those months.
Commenting, Ralph Findlay, Chief Executive Officer, said :
"The last 16 months have been extremely difficult, but we are
delighted to be fully open again albeit taking our responsibilities
seriously whist striving to offer our guests a genuine but safe pub
experience. Pubs are social spaces, and for pubs to prosper we need
to be able to offer conviviality, sociability and a place to
celebrate which we can now do as of last week.
"That said, there are challenges ahead as the sector starts out
on the road to recovery with the immediate short term continuing to
be uncertain and operationally disrupted. The tone of Government
messaging will be an important influence on consumer confidence. At
present, the message is one of caution. We believe that a
Government review of the business rates system is long overdue and
that VAT reduction should be permanent since the hospitality
industry remains one of the most heavily taxed sectors. This would
assist an industry that has been hit hard and aid hospitality's
employment and development of young workers which will be a key
part of the UK's economic recovery.
"Despite these challenges the role that the pub plays in the
social fabric and culture of Britain as demonstrated by the pent-up
demand and the rapid return of customers, is needed as never
before, and therefore we are confident in our future."
Forthcoming Events
Please find below the forthcoming reporting dates for the Group,
which are also available on the investor calendar on our website -
www.marstons.co.uk/investors
Year-end trading statement 13 October 2021
2021 Preliminary results 30 November 2021
ENQUIRIES:
Marston's PLC Tel: 01902 329516 Instinctif Partners Tel: 020
7457 2010/2005
Ralph Findlay, Chief Executive Justine Warren
Officer
Andrew Andrea, Chief Financial Matthew Smallwood
and
Corporate Development Officer
NOTES TO EDITORS
-- Marston's is a leading pub operator with a 40% holding in
Carlsberg Marston's Brewing Company
-- It operates an estate of c1,500 pubs situated nationally,
comprising managed, franchised and leased pubs
-- Marston's employs around 11,000 people
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END
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