REG - Marston's Plc - PRELIMINARY RESULTS
Tue 07:02
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RNS Number : 8149I Marston's PLC 25 November 2025
25 November 2025
MARSTON'S PLC
("Marston's" or "the Group")
PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED 27 SEPTEMBER 2025
A YEAR OF STRONG DELIVERY, AHEAD OF PLAN: SIGNIFICANT PROFIT GROWTH, MARGIN
EXPANSION, FREE CASH FLOW ABOVE TARGET AND RECORD GUEST SATISFACTION
Marston's, a leading UK hospitality business with an estate of more than 1,300
pubs, today announces its Preliminary Results for the 52 weeks ended 27
September 2025.
Underlying Statutory / Total
FY2025 FY2024 Change FY2025 FY2024 Change
Total revenue (£m) 897.9 898.6 (0.1)% 897.9 898.6 (0.1)%
EBITDA(1,2) (£m) 205.1 192.5 6.5% 224.9 197.0 14.2%
EBITDA margin(1,2) (%) 22.8 21.4 140bps 25.0 21.9 310bps
Operating profit(1) (£m) 159.9 147.2 8.6% 179.7 151.7 18.5%
Profit before tax(1) (£m) 72.1 42.1 71.3% 88.3 14.4 513.2%
Basic earnings per share(1) (pence) 8.5 5.2 63.5% 11.3 2.8 303.6%
Capex (£m) - - - 61.2 46.2 32.5%
Recurring free cash flow(2) (£m) - - - 53.2 43.6 22.0%
Pre IFRS 16 Net Debt(2) (£m) - - - 837.5 883.7 (5.2)%
Pre IFRS 16 Net Debt / EBITDA(1,2) 4.6 5.2 (0.6) - - -
NAV per share(2) (£) - - - 1.25 1.03 21.4%
Step-change in profitability
• Total revenue of £897.9 million (2024: £898.6 million), with
like-for-like (LFL) growth, format roll-out and revenue management initiatives
offsetting impact of c. £50 million of pub disposals in the prior period
• LFL sales rose 1.6% (2024: 4.8%), ahead of the market, with, food,
drink and machines all in growth(3)
• Underlying EBITDA margin up to 22.8% (2024: 21.4%), reflecting the
strength of our market-leading pub operating model and strategic cost
management including improvements to labour efficiency, procurement gains and
energy management
• Underlying profit before tax up 71.3% to £72.1 million (2024:
£42.1 million), marking the second consecutive year of significant profit
growth driven by our progress on LFL sales, contribution from new formats,
disciplined cost control, and reduced interest costs
Clear progress on recurring free cash flow and debt reduction
• Recurring free cash flow of £53.2 million (2024: £43.6 million),
ahead of £50 million Capital Markets Day (CMD) target, delivered ahead of
schedule and providing confidence in the Group's ability to sustainably
deliver significant levels of recurring free cash flow
• Capital investment of £61.2 million (2024: £46.2 million),
including expansionary capital of £8.0 million, reflecting the first year of
investment into the new pub formats and wider estate upgrades
• Net debt excluding IFRS 16 lease liabilities reduced to £837.5
million (2024: £883.7 million), down nearly one-third since FY2022 and
underpinned by a predominantly freehold estate now valued at £2.2 billion
(2024: £2.1 billion)
• Leverage ratio (pre-IFRS 16) reduced to 4.6x (2024: 5.2x); the Group
remains committed to reducing leverage to less than 4.0x and expects to
recommence shareholder returns at this point
• NAV per share increased to £1.25 (2024: £1.03), underpinned by
improvement in profitability, estate revaluation and deleveraging
Strong strategic and operational delivery underpinning financial performance
• Record Reputation score of 816, up from 800 in the prior period,
reflecting consistently high guest satisfaction and a continued focus on
delivering excellent experiences across the estate
• 31 format conversions completed during FY2025, delivered on time and
within budget, with exceptional guest feedback. Average revenue uplifts of 23%
and return on invested capital of over 30%
• Demand-driving event programme supporting engagement and footfall,
with highlights including Trivial Pursuit 'Win a Wedge', Pub Life, Paddington
in Peru and the Cool Hand Cup darts tournament
• Enhanced Order & Pay platform now live across the entire managed
estate, supporting a 10% increase in spend per guest and improving operational
efficiency
• 'Right People, Right Time' labour model offsetting National
Insurance and minimum wage increases, demonstrating ability to absorb external
cost pressures and protect margins; with further opportunity ahead
Outlook
• LFL sales for the 8 weeks to 22 November are tracking in line with
the prior year
• Christmas bookings are strong, 11% ahead of the same point last
year. The Group is well positioned for a strong festive period and FY2026,
supported by ongoing format conversions and a robust calendar of
demand-driving events, including the 2026 World Cup
• The roll-out of our pub formats is building momentum, and we plan to
accelerate this growth engine this year with at least 50 new format launches.
Capex spend will remain in line with CMD guidelines of 7-8% of total revenue
• Cost pressures remain manageable within the context of our ongoing
efficiency programme, we expect to deliver further margin uplifts in the year
ahead given current cost visibility
• The Board remains focused on delivering long-term shareholder value
through disciplined investment and deleveraging; shareholder returns are
expected to commence once leverage reduces below 4.0x
• Remain firmly on track to deliver further strategic progress and
achieve the targets set out at the CMD
Justin Platt, CEO of Marston's PLC, commented:
"We've delivered another strong year ahead of plan, executing on our strategy
to be a high-margin, highly cash-generative local pub company. For the second
consecutive year, we've delivered significant growth in profit, margin and
free cash flow, underlining the strength of our market-leading pub operating
model and the outstanding work of our teams.
Guest satisfaction has reached record levels - a fantastic endorsement of the
passion and dedication of our people and the quality and consistency they
deliver every day. Our new pub formats are performing exceptionally well,
clearly demonstrating the growth opportunity ahead and giving us real
conviction to scale further.
"We enter 2026 with significant momentum and confidence in our ability to keep
driving growth, while delivering great experiences for our guests and creating
sustainable value for our shareholders."
Results Call:
An analyst and investor presentation will be held on 25 November 2025 at
10.00am UK time. Participants need to register using this link:
https://brrmedia.news/MARS_FY_25 (https://brrmedia.news/MARS_FY_25)
A full playback of the presentation will be made available shortly after its
conclusion on the Marston's Investor Relations website:
https://www.marstonspubs.co.uk/investors/results-presentations/
(https://www.marstonspubs.co.uk/investors/results-presentations/)
Enquiries:
Investors
Marston's PLC
Justin Platt,
CEO
Tel: 01902 329516
Stephen Hopson,
CFO
Matthew Lee, Investor
Relations
matthew.lee@marstons.co.uk
Media
Marston's PLC
Giles Robinson, Director of Corporate
Affairs
giles.robinson@marstons.co.uk
Sodali & Co
Ben
Foster
Tel: 020 7250 1446
Russ Lynch
Oliver
Banks
marstons@sodali.com
Notes
1. Results from continuing operations.
2. Alternative Performance Measure. See from page 26 for
reconciliation to GAAP.
3. CGA RSM Hospitality Business Tracker - total market. Like-for-like
sales means sales for the Group's managed and partnership pubs, including
food, drink, accommodation and gaming machine income, considered on a daily
basis where the pub was trading in both the current and prior period.
Notes to Editors
Marston's PLC, listed on the London Stock Exchange under the ticker MARS, is a
leading UK hospitality business with an estate of more than 1,300 pubs
nationally, comprising managed, partnership ('franchised') and tenanted and
leased pubs. Marston's employs around 9,000 people.
More information is available at https://www.marstonspubs.co.uk/
(https://www.marstonspubs.co.uk/)
The Group uses a number of alternative performance measures (APMs) to enable
management and users of the financial statements to better understand elements
of financial performance in the period. APMs are explained and reconciled in
the appendix to the financial statements.
CEO Statement
FY2025 has been a year of strong delivery for Marston's as we continued to
focus on being the UK's leading local pub company. We have seen encouraging
results across the board - from improved profitability and margin expansion to
record guest satisfaction and recurring free cash flow ahead of our target.
With strong momentum, a high-margin platform, and our formats growth engine
poised to deliver, we are well positioned to build on this foundation and
continue creating long-term value for all stakeholders.
Strategic & Operational Delivery
In FY2025 our efforts have been firmly concentrated on delivering a
market-leading pub operating model, scaling our proven guest-led pub formats,
and continuing to embed digital capabilities across the business. Each of
these areas is already delivering tangible performance benefits and
collectively, they are laying the foundation for long-term, sustainable
growth.
Market-Leading Pub Operating Model
Delivering a market-leading operating model is central to our strategy and has
underpinned much of the progress made this year. At its core, our model is
built around three pillars: revenue growth, cost efficiency, and guest
satisfaction - all working together to create a more profitable, consistent,
and scalable business. We have continued to invest in initiatives that support
top-line performance, with our demand-driving event programme playing a key
role. From Trivial Pursuit: 'Win a Wedge' to Pub Life and partnerships like
Paddington in Peru and the Cool Hand Cup, these events have supported
engagement, driven footfall, and strengthened our connection with guests.
Our operational discipline has driven a 140bps improvement in EBITDA margin -
a standout result that reflects the strength of our approach. Our labour
scheduling tool, which is focused on ensuring we have the right people at the
right time, has helped us manage external cost pressures, while procurement
and energy efficiencies continue to deliver meaningful gains. Going forward,
we view cost pressures as manageable within the context of our ongoing
efficiency programme, and we expect to deliver further margin uplift in the
year ahead.
At the heart of our progress is an unwavering focus on the guest. Our record
Reputation score of 816 reflects the pride our teams take in creating great
experiences and the tangible improvements we have made across the estate. From
demand-driving events and better Signature menu execution to increased Order
& Pay usage and more efficient labour scheduling, every initiative is
designed to enhance service and satisfaction - and it is great to see our pubs
delivering that experience more consistently than ever.
Differentiated Pub Formats
Our differentiated pub formats are a key future growth engine. In FY2025, we
completed 31 conversions - 21 Two-Doors, 5 Grandstands and 5 Woodie's - all
delivered on time, on budget and generating strong guest feedback and average
revenue uplifts of 23%. With average capex per renovation of £260k and a
return on invested capital of over 30%, these formats are delivering in terms
of both guest satisfaction and financial returns. Looking ahead to FY2026, we
plan to accelerate the roll-out with at least 50 further conversions, all
within our disciplined 7-8% capex-to-revenue range. This next phase will
continue to scale one of the most exciting and high-impact levers in our
strategy.
Digital Transformation
Digital transformation is playing a central role in improving both the guest
experience and operational efficiency across the business. At the heart of
this is our enhanced Order & Pay platform, launched in March and now live
across our entire managed estate. Results have been very encouraging, with
revenue per transaction up over 10%, supported by stronger upselling and
premiumisation. The platform also improves speed of service - particularly in
high-volume and outdoor areas - and is therefore contributing to higher guest
satisfaction. More broadly, we are embedding AI tools across the business,
from forecasting and labour planning to menu development and energy
efficiency. With further investments in infrastructure - including new tills,
tablets and an upgraded Wi-Fi network - we are building a more connected,
data-driven estate that can scale more efficiently and deliver for guests in
every pub, at every visit.
Financial Progress
FY2025 marked a step-change in our financial performance. We delivered another
year of significant profit growth and a material improvement in recurring free
cash flow - enabling us to invest in our estate, reduce debt, and strengthen
the platform for future shareholder returns. Like-for-like sales growth of
1.6% remained ahead of the market and was supported by strong performance from
our 31 new format launches. Underlying profit before tax from continuing
operations rose 71.3% to £72.1 million, following a 64.5% uplift in FY2024,
driven by disciplined cost control and strong operational execution.
Recurring free cash flow of £53.2 million exceeded our CMD target and was
delivered significantly ahead of schedule. This supported further
deleveraging, with net debt (excluding IFRS 16 lease liabilities) reducing to
£837.5 million. Net debt (excluding IFRS 16 lease liabilities) is now down by
almost a third since FY2022 and remains underpinned by a predominantly
freehold estate now valued at approximately £2.2 billion. Our leverage ratio
improved to 4.6x, and net asset value per share rose to £1.25, reflecting
increased profitability, estate revaluation gains, and debt reduction.
Over the near-to-medium term, we continue to expect to deliver on the targets
set out at our CMD, which include:
· Revenue growth ahead of the market
· EBITDA margin expansion of 200-300 basis points beyond FY2024,
targeting 23.4% to 24.4%
· Over £50 million recurring free cash flow
· >30% ROIC on investment focused capex
Sustainably Operating the Business
In FY2025, we continued to make meaningful progress across all areas of our
sustainability agenda. We now have approximately 560 EV chargers across over
200 pubs, extended our glass reuse scheme to more than 150 locations, and
completed the installation of solar panels at 65 pubs. We are proud to be
leading the way on food waste too - achieving 74% of our 2030 reduction target
and preventing over 43 tonnes of food waste through our partnership with Too
Good To Go. On the people front, we were recognised as the UK pub industry's
top employer by the Financial Times and with nearly 95% of our pubs achieving
a 5* EHO rating, our commitment to high operational standards remains clear.
We remain focused on driving further progress in FY2026, with practical,
targeted actions that make our business more sustainable for the long term.
Outlook
Marston's heads into FY2026 with real momentum. Our high-margin operating
model is underpinned by strong cost discipline, a scalable digital platform,
and increasing operational efficiency - all of which are driving robust cash
generation and ongoing margin improvement. Record guest satisfaction,
reflected in our highest-ever Reputation score, speaks to the consistency of
our offer and the pride our teams take in delivering great local pub
experiences. We are well positioned heading into the critical festive period,
with bookings tracking 11% ahead of the same point last year and a strong
calendar of demand-driving events in place - such as Marston's Best Ever
Christmas.
The standout opportunity for FY2026 is the acceleration of our guest-led pub
formats - a proven growth engine at the heart of our strategy. The 31
conversions completed in FY2025 have continued to trade well beyond their
initial uplift, giving us the confidence to step up to at least 50 format
launches in the year ahead, with a focus on Two-Door and Grandstand. This
roll-out represents a scalable, repeatable model for growth that is resonating
with guests and supporting our longer-term ambitions. As we move into FY2026,
our priorities are clear: to continue to drive performance through our
market-leading operating model, new formats roll-out plan & digital
transformation; delivering sustainable value for shareholders.
Financial Review
Revenue
Revenue was stable at £897.9 million (2024: £898.6 million). Total sales
in the Group's managed and partnership pubs for the 52-week period increased
to £871.9 million (2024: £864.6 million). Like-for-like sales within our
managed and partnership pubs were up 1.6% compared to FY2024, outpacing the
market which grew at 0.7% (source: CGA RSM Hospitality Tracker).
Like-for-like growth, although modest, was broad based, including drink
like-for-like sales up 0.3% and food like-for-like sales up 2.2%. Sales were
supported by our increasing focus on revenue-driving activity, 31 format
conversions and consistent focus on customer service. Revenues in the tenanted
and leased estate were £26.0 million (2024: £34.0 million). This follows c.
£50 million of strategic disposals across FY2024 and FY2025, predominantly
from the tenanted and leased estate, together with conversion of sites to the
managed and partnership models.
Underlying EBITDA and operating profit
A key target for the Group, outlined at the CMD, was to grow underlying EBITDA
margin by 200-300 basis points from 2024 levels, giving a target range of
23.4% to 24.4%.
The Group's profitability stepped up materially in the period. In FY2025,
underlying EBITDA from continuing operations increased by 6.5% to £205.1
million (2024: £192.5 million). The EBITDA margin was up 140 basis points to
22.8%, despite c. £10.0 million of inflationary and regulatory cost
headwinds, including employment cost increases following the national
insurance and national living wage changes of April 2025, as we made strong
progress in executing our market-leading operating model. Significant savings
were made as we rolled out enhanced labour scheduling systems, and the Group
delivered central efficiencies, procurement gains, and more efficient repairs
and maintenance spend, whilst investing in increased marketing expenditure and
more specialist roles. We see further opportunity to increase the EBITDA
margin in FY2026 as we move towards our target.
As a result of the progress made on EBITDA margin, the average EBITDA per pub
in managed and partnership increased 7.5% to £161.3k, the average EBITDA per
pub in tenanted and leased increased 2.5% to £98.6k and the overall EBITDA
per pub increased 7.4% to £154.4k.
Underlying depreciation and amortisation costs of £45.2 million were broadly
flat year-on-year (2024: £45.3 million).
Underlying operating profit from continuing operations increased by 8.6% to
£159.9 million (2024: £147.2 million). Underlying operating margins of 17.8%
grew by 140 basis points compared to the prior period (2024: 16.4%). Statutory
operating profit from continuing operations, including non-underlying items
(see below), was £179.7 million (2024: £151.7 million).
Net finance costs
Underlying net finance costs were £87.8 million, substantially lower than the
prior period (2024: £105.1 million) as a result of lower average net debt
year-on-year, in particular following the disposal of the remaining 40%
interest in Carlsberg Marston's Limited (CMBC) part way through FY2024. Please
see the Debt and Financing section below for a breakdown of the components of
net debt.
Underlying net finance costs include £34.8 million relating to the business's
securitised debt (2024: £35.3 million), £11.9 million relating to bank
borrowings (2024: £25.4 million), £23.3 million relating to other
lease-related borrowings (2024: £22.9 million), a £19.0 million expense
relating to IFRS 16 lease liabilities (2024: £19.2 million), and £(1.2)
million of other items (2024: £2.3 million). There was a non-underlying
charge of £3.6 million relating to the Group's interest rate swaps (2024:
£32.2 million).
Profit before tax
As a result of a £12.7 million increase in underlying operating profit and a
£17.3 million decrease in underlying net finance costs, underlying profit
before tax from continuing operations increased year-on-year by £30.0
million, or 71.3%, to £72.1 million (2024: £42.1 million). Statutory profit
before tax from continuing operations was £88.3 million (2024: £14.4
million), with the difference reflecting a net non-underlying profit of £16.2
million, the details of which are set out below.
Non-underlying items
There was a net non-underlying profit of £16.2 million before tax. This
included a £22.9 million net gain representing net reversals of previous
impairments of freehold and leasehold property values, following the external
estate valuation of the Group's effective freehold properties and the
impairment review of the Group's leasehold properties, partially offset by
£3.1 million of reorganisation, restructuring and relocation costs and a
£3.6 million net expense in respect of interest rate swap movements.
In the prior period, there was a net non-underlying loss from continuing
operations of £27.7 million before tax, consisting of a net loss of £32.2
million in respect of interest rate swap movements and £1.2 million of
restructuring costs, partially offset by £5.7 million of net impairment
reversals from the 2024 property revaluation and leasehold impairment review.
Taxation
The underlying tax charge was £18.3 million (2024: £9.0 million), with an
underlying effective tax rate of 25.4% (2024: 21.4%). The effective rate is
slightly higher than the standard rate of corporation tax primarily due to the
impact of disallowed depreciation on non-qualifying assets offset by a prior
period tax credit. We expect the underlying effective tax rate to be
approximately in line with the standard rate of corporation tax in future
years.
Tax on non-underlying items was a credit of £1.6 million (2024: £12.1
million), driven primarily from the recognition of a £5.4 million deferred
tax asset from capital losses, previously derecognised, arising from the
upward revaluation of land and buildings.
The statutory tax charge was £16.7 million (2024: credit of £3.1 million) on
statutory profit before tax from continuing operations of £88.3 million
(2024: £14.4 million), with an effective tax rate of 18.9% (2024: negative
effective tax rate of 21.5%). The effective tax rate for prior periods
including discontinued operations was positively impacted by income from
associates, now discontinued, recognised on a post-tax basis.
Profit after tax and earnings per share
The statutory profit after tax from continuing operations was £71.6 million,
compared to £17.5 million in the prior period. In the prior period, there was
a loss of £36.0 million from discontinued operations, including an impairment
of the carrying value of the CMBC investment and losses on disposal. The
statutory profit from both continuing and discontinued operations in the
current period was £71.6 million compared to a loss of £18.5 million in the
prior period.
Basic underlying earnings per share from continuing operations increased 63.5%
to 8.5 pence per share (2024: 5.2 pence per share). Total statutory basic
earnings per share were 11.3 pence (2024: loss of 2.9 pence).
Capital expenditure
Our capital expenditure strategy was set out at the CMD, with a near-term
target spend of 7-8% of revenue, including
projects to enhance the estate through differentiated formats. Making progress
on this, capital expenditure was £61.2 million in the current period (2024:
£46.2 million), representing 6.8% of revenue (2024: 5.1% of revenue). Of the
total expenditure, £8.0 million was spent on 31 format conversions, including
21 Two-door, 5 Grandstand and 5 Woodie's. Since re-opening, these conversions
have delivered sales uplifts of 23% with EBITDA returns on investment in
excess of 30% in trading to date. In addition, we continued to invest in
maintaining our core business and in our IT platforms.
Property and disposals
The Group's policy is to revalue its effective freehold estate on an annual
basis and review its leasehold estate annually for impairment. The Group
conducts an annual external valuation of all its properties to assist with
this process, with all pubs inspected on a rotating basis. Approximately
one-third of the estate undergoes physical inspection each year, while the
remainder is subject to a desktop valuation. In June 2025, Christie & Co
carried out an external valuation, the results of which are reflected in the
full year accounts.
The carrying value of the estate is £2.2 billion (2024: £2.1 billion).
Following the valuation, the Group recognised a £22.9 million net impairment
reversal of freehold and leasehold properties in the income statement (2024:
£5.7 million), and a £109.8 million unrealised surplus on the revaluation of
properties (2024: £80.8 million) together with a £38.6 million reversal of
past revaluation surplus (2024: £39.8 million) in other comprehensive income.
During the current period, the Group generated £6.4 million in net proceeds
from non-core pub disposals (2024: £46.9 million), mainly reflecting the end
of the prior period's strategic disposal programme.
The Group ended the period with 1,328 pubs (2024: 1,339 pubs), of which 1,182
were operating under the managed or partnership models (2024: 1,182) and 146
were operating under the tenanted and leased models (2024: 157 pubs).
Pensions
The balance on our defined benefit scheme was a £15.4 million surplus as at
27 September 2025 (2024: £13.1 million surplus). The Group will continue to
pay the administrative fees associated with the scheme but is currently making
no other contributions to the scheme.
Net asset value
The table below shows the main movements in net asset value:
2025 2024 Variance Variance
£m £m £m %
Property, plant and equipment 2,181.3 2,069.0 112.3 5.4 %
Other assets excluding cash* 99.1 98.8 0.3 0.3 %
Cash* 35.9 45.5 (9.6) (21.1)%
Total assets 2,316.3 2,213.3 103.0 4.7 %
Borrowings (1,241.6) (1,302.9) 61.3 4.7 %
Other liabilities (284.0) (255.6) (28.4) (11.1)%
Total liabilities (1,525.6) (1,558.5) 32.9 2.1 %
Net assets 790.7 654.8 135.9 20.8 %
Net asset value per share £1.25 £1.03 £0.22 21.4 %
* 'Cash' in this table refers to cash and cash equivalents, together with
other cash deposits.
Net assets increased to £790.7 million (2024: £654.8 million), with a net
asset value per share of £1.25 (2024: £1.03). The main changes in net asset
value were an increase in property, plant and equipment as a result of the
property revaluation and the capital investment made in the business, a
decrease in borrowings net of cash due to the positive progress made in
generating free cash flow in the year, and an increase in deferred tax
liabilities, largely as a result of the property revaluation gain.
Cash flow
A summary of the Group's cash flow is given below:
2025 2024
£m £m
Cash adjusted total EBITDA 203.1 192.8
Working capital movement 3.0 8.2
DB pension contributions (1.6) (7.5)
Corporation tax (payments) / receipts (5.3) 0.1
Net cash inflow from operating activities excluding CMBC dividend 199.2 193.6
Net interest (incl finance lease capital repayments received) (83.2) (98.2)
Capex (61.2) (46.2)
Bank fees & swap termination costs (0.9) (5.6)
Purchase of and sales proceeds from own shares (0.7) -
Recurring free cash flow (RFCF) 53.2 43.6
CMBC dividend - 13.8
Sale of property, plant and equipment and assets held for sale 6.4 46.9
Disposal of associate (2.8) 205.5
Net cash flow (NCF) 56.8 309.8
Debt repayments and transfers from other cash deposits (66.4) (291.9)
Net increase/(decrease) in cash and cash equivalents (9.6) 17.9
There was a net cash inflow from operating activities of £199.2 million
(2024: £207.4 million, £193.6 million excluding the CMBC dividend). Within
this, working capital timing differences were £3.0 million (2024: £8.2
million). There were £1.6 million of payments in relation to the defined
benefit pension scheme (2024: £7.5 million) following the cessation of c. £6
million annual cash contributions at the end of FY2024. Cash tax payments were
£5.3 million (2024: repayments of £0.1 million), comprising payments in
respect of FY2024 and payments on account for FY2025 under the 'large company'
regime. As the Group's taxable profits increase, it expects to move into the
'very large company' regime in FY2026 which will result in c. 18 months of
cash tax charges being included in the FY2026 cash flow.
Net interest costs including finance lease capital repayments received were
£83.2 million (2024: £98.2 million) and capital expenditure was £61.2
million (2024: £46.2 million). After bank fees, swap termination costs, and
the purchase of and sales proceeds from own shares, recurring free cash flow
was £53.2 million (2024: 43.6 million), meeting the target set out at the CMD
of recurring free cash flow of over £50 million a year.
Taking into account disposals proceeds received of £6.4 million (2024: £46.9
million), a CMBC dividend of £nil (2024: £13.8 million) and cash outflows in
relation to the disposal of the Group's remaining 40% interest in CMBC of
£2.8 million (2024: inflow of £205.5 million), net cash flow for the period
was £56.8 million (2024: £309.8 million).
Mandatory securitised loan note repayments of £43.8 million (2024: £41.5
million), repayments of the capital element of lease liabilities relating to
IFRS 16 of £8.6 million (2024: £8.4 million) and other debt repayments and
transfers from other cash deposits of £14.0 million (2024: £242.0 million)
resulted in an overall decrease in cash and cash equivalents of £9.6 million
(2024: increase of £17.9 million).
Debt and financing
Net debt, excluding IFRS 16 lease liabilities, was £837.5 million (2024:
£883.7 million), a reduction of £46.2 million. Including IFRS 16 lease
liabilities of £368.2 million (2024: £373.7 million), total net debt was
£1,205.7 million (2024: £1,257.4 million).
The Group has continued to make progress in net debt reduction during the
year; with net debt:EBITDA excluding IFRS 16 falling from 5.2x in 2024 to 4.6x
at the period end. Leverage including IFRS 16 reduced from 6.5x to 5.9x.
The Group's financing, providing an appropriate level of flexibility and
liquidity for the medium term, comprises:
Debt types Repayment/expiry date or average length Debt (£m) Cash balances (£m) Net Debt (£m)
Securitisation 2035 516.7 21.4 495.3
Securitisation liquidity facility (£120m) - - -
Marston's Issuer PLC's cash - 0.4 (0.4)
Securitisation totals 516.7 21.8 494.9
Other lease-related borrowings 2047-2058 338.9 - 338.9
-
Bank facility (£200.0m) July 2027 21.0 14.1 6.9
Unamortised issue costs (3.3) - (3.3)
Seasonal overdraft (£5m) - - -
Bank facility totals 17.7 14.1 3.6
Preference shares 0.1 - 0.1
Total excluding IFRS 16 lease liabilities 873.4 35.9 837.5
IFRS 16 lease liabilities 24 years, on average 368.2 - 368.2
Total 1,241.6 35.9 1,205.7
The securitisation debt is loan notes issued in 2005 and 2007, secured on
ring-fenced properties. It is long-term debt with predictable debt servicing
(capital and interest payments). All floating rate notes are economically
hedged in full by the Group using interest rate swaps whereby all interest
payments are swapped to fixed interest payable. The weighted average fixed
interest rate payable by the Group on its securitised debt as at 27 September
2025 was 6.4%. The terms of the securitisation require a liquidity facility to
be in place, of which £nil was drawn at year end.
'Other lease-related borrowings' is debt recognised against properties subject
to sale and leaseback arrangements with repurchase options available to the
Group at nominal value. The obligations under these arrangements do not fall
within the scope of IFRS 16 "Leases" and are accounted for in accordance with
IFRS 9 "Financial Instruments", with the assets treated as "effective
freeholds". Caps and collars are in place to limit the index-linked increases
in interest costs. Currently, no capital repayments are being made on the
borrowings, which are economically similar to mortgages; repayment of the
capital element is expected to begin in FY2033 with full repayment by 2058.
During the current period, the Group successfully secured a one-year extension
to its banking facility, which was due to expire in July 2026. The revised
bank facility to July 2027 is for £200.0 million, of which £21.0 million was
drawn at the year end.
IFRS 16 lease liabilities are obligations from leases including sale and
leaseback arrangements that completed without an option to repurchase the
asset at nominal value.
The Group holds three interest swaps in relation to its borrowing facilities
with a net valuation of £(53.9) million as at the period end (2024: £(59.0)
million), which are excluded from net debt.
The vast majority of our borrowings are long-dated and asset-backed, including
the securitisation debt. The loan to value of securitised debt, which is
decreasing year-on-year, is currently 41% (2024: 46%), and the loan to value
of net debt excluding lease liabilities is 44% (2024: 50%).
In summary, we have adequate cash headroom in our financing structures to
provide operational flexibility. Importantly, all of our medium to long-term
financing is hedged or contains caps and collars, thereby minimising any
exposure to interest rate movements. Good progress has been made in
deleveraging the business and we expect this progress to continue moving
forwards.
Capital allocation and shareholder returns
As set out at our CMD, our capital allocation framework is focused on
enhancing long-term shareholder value through a disciplined balance of
delivering strong returns on investment and deleveraging. The Board is pleased
that the Group has delivered initial EBITDA returns in excess of 30% on
expansionary capital. In addition, deleveraging has continued and net debt to
EBITDA before IFRS 16 has fallen from 5.2x in FY2024 to 4.6x at this period
end. However, leverage remains higher than target and, as such, no dividend
will be paid in respect of FY2025.
Shareholder returns remain a core part of our capital allocation strategy and
are planned once leverage (excluding IFRS 16) falls below 4.0x. Given the
significant discount between net asset value per share and the share price,
consideration will be given at that point to the use of cash for share buy
backs alongside or instead of other returns of capital, taking into account
further planned debt reduction, the requirement of cash for growth investment
and the availability of distributable reserves.
Going concern
Having considered the Group's forecast financial position and exposure to
principal risks and uncertainties, including cost and inflationary pressures,
the Directors have a reasonable expectation that the Group has adequate
resources to continue to operate within its borrowing facilities and covenants
for a period of at least 12 months from the date of signing the financial
statements. Accordingly, the financial statements have been prepared on the
going concern basis. Full details are included in note 1 of the financial
statements. This forecast predates the Autumn Budget 2025 and therefore does
not include the impact of any specific measures which may be announced.
Key estimates and significant judgements
Under IFRS the Group is required to make estimates and assumptions that affect
the application of policies and
reported amounts. Details are provided in note 1 of the financial statements.
Director Dealings
During the financial year, the Chief Executive Officer purchased 148,103
ordinary shares in the Company, representing one third of the FY2024 bonus
award, together with completing four automatic disposals to cover
administrative charges. These disposals totalled 203 shares at a weighted
average price of 39.55 pence, for aggregate proceeds of £80.29.
Notes:
· Prior period was a 52-week period to 28 September 2024.
· The Group uses a number of alternative performance measures
(APMs) to enable management and users of the financial statements to better
understand elements of financial performance in the period. APMs are explained
and reconciled in the appendix to the financial statements.
GROUP INCOME STATEMENT
For the 52 weeks ended 27 September 2025
2025 2024
Underlying(1) Non- Underlying(1) Non-
£m underlying(1) Total £m underlying(1) Total
£m £m £m £m
Revenue 897.9 - 897.9 898.6 - 898.6
Net operating expenses (738.0) 19.8 (718.2) (751.4) 4.5 (746.9)
Operating profit 159.9 19.8 179.7 147.2 4.5 151.7
Finance costs (90.0) - (90.0) (106.5) - (106.5)
Finance income 2.2 - 2.2 1.4 - 1.4
Interest rate swap movements - (3.6) (3.6) - (32.2) (32.2)
Net finance costs (87.8) (3.6) (91.4) (105.1) (32.2) (137.3)
Profit/(loss) before taxation 72.1 16.2 88.3 42.1 (27.7) 14.4
Taxation (18.3) 1.6 (16.7) (9.0) 12.1 3.1
Profit/(loss) for the period from continuing operations 53.8 17.8 71.6 33.1 (15.6) 17.5
Discontinued operations
Profit/(loss) for the period from discontinued operations - - - 0.5 (36.5) (36.0)
Profit/(loss) for the period attributable to equity shareholders 53.8 17.8 71.6 33.6 (52.1) (18.5)
The results for the current period reflect the 52 weeks ended 27 September
2025 and the results for the prior period reflect the 52 weeks ended 28
September 2024.
Earnings/(loss) per share: 2025 2024
p p
Basic earnings/(loss) per share
Total 11.3 (2.9)
Continuing 11.3 2.8
Discontinued - (5.7)
Basic underlying(1) earnings per share
Total 8.5 5.3
Continuing 8.5 5.2
Discontinued - 0.1
Diluted earnings/(loss) per share
Total 11.1 (2.8)
Continuing 11.1 2.7
Discontinued - (5.5)
Diluted underlying(1) earnings per share
Total 8.3 5.1
Continuing 8.3 5.0
Discontinued - 0.1
(1) Alternative performance measures (APMs) are defined and reconciled to a
statutory equivalent in the APM section of these Preliminary
Results.
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks ended 27 September 2025
2025 2024
£m £m
Profit/(loss) for the period 71.6 (18.5)
Items of other comprehensive income that may subsequently be reclassified to
profit or loss
Gains/(losses) arising on cash flow hedges 1.9 (2.8)
Transfers to the income statement on cash flow hedges 6.8 7.6
Other comprehensive expense of associates relating to discontinued operations - (0.1)
Tax on items that may subsequently be reclassified to profit or loss (2.2) (1.2)
6.5 3.5
Items of other comprehensive income that will not be reclassified to profit or
loss
Remeasurement of retirement benefits 1.5 (6.9)
Unrealised surplus on revaluation of properties 109.8 80.8
Reversal of past revaluation surplus (38.6) (39.8)
Tax on items that will not be reclassified to profit or loss (16.2) (8.1)
56.5 26.0
Other comprehensive income for the period 63.0 29.5
Total comprehensive income for the period attributable to equity shareholders 134.6 11.0
The results for the current period reflect the 52 weeks ended 27 September
2025 and the results for the prior period reflect the 52 weeks ended 28
September 2024.
GROUP CASH FLOW STATEMENT
For the 52 weeks ended 27 September 2025
2025 2024
£m £m
Operating activities
Profit/(loss) for the period 71.6 (18.5)
Taxation 16.7 (3.1)
Net finance costs 91.4 137.3
Depreciation and amortisation 45.2 45.3
Working capital movement 3.0 8.2
Non-cash movements (21.5) 32.7
Decrease in provisions and other non-current liabilities (0.3) (0.9)
Difference between defined benefit pension contributions paid and amounts (1.6) (7.5)
charged
Dividends from associates - 13.8
Income tax (paid)/received (5.3) 0.1
Net cash inflow from operating activities 199.2 207.4
Investing activities
Interest received 2.2 1.7
Sale of property, plant and equipment and assets held for sale 6.4 46.9
Purchase of property, plant and equipment and intangible assets (61.2) (46.2)
Disposal of associate (2.8) 205.5
Finance lease capital repayments received 1.2 2.0
Net transfer from other cash deposits - 2.0
Net cash (outflow)/inflow from investing activities (54.2) 211.9
Financing activities
Interest paid (86.6) (101.9)
Arrangement costs of bank facilities (0.9) (3.6)
Swap termination costs - (2.0)
Purchase of own shares (0.8) -
Proceeds from sale of own shares 0.1 -
Repayment of securitised debt (43.8) (41.5)
Repayment of bank borrowings* (215.0) (419.0)
Advance of bank borrowings* 201.0 225.0
Net repayments of capital element of lease liabilities (8.6) (8.4)
Repayment of other borrowings - (50.0)
Net cash outflow from financing activities (154.6) (401.4)
Net (decrease)/increase in cash and cash equivalents (9.6) 17.9
The cash flows for the current period reflect the 52 weeks ended 27 September
2025 and the cash flows for the prior period reflect the 52 weeks ended 28
September 2024.
* The Group reports cash flows arising from its bank borrowing facilities on a
gross basis where the maturity periods were greater than three months. The net
repayment of bank borrowings in the current period was £14.0 million (2024:
£194.0 million).
GROUP BALANCE SHEET
As at 27 September 2025
27 September 28 September
2025 2024
£m £m
Non-current assets
Intangible assets 26.9 29.3
Property, plant and equipment 2,181.3 2,069.0
Other non-current assets 14.7 14.4
Retirement benefit surplus 15.4 13.1
Derivative financial instruments 0.7 0.4
2,239.0 2,126.2
Current assets
Inventories 13.8 14.4
Trade and other receivables 27.6 25.9
Other cash deposits 1.1 1.1
Cash and cash equivalents 34.8 44.4
77.3 85.8
Assets held for sale - 1.3
77.3 87.1
Current liabilities
Borrowings (62.2) (58.2)
Trade and other payables (182.1) (179.5)
Current tax liabilities (3.9) (2.8)
Provisions for other liabilities and charges (0.6) (0.6)
(248.8) (241.1)
Non-current liabilities
Borrowings (1,179.4) (1,244.7)
Derivative financial instruments (54.6) (59.4)
Other non-current liabilities (9.4) (8.3)
Provisions for other liabilities and charges (2.5) (2.6)
Deferred tax liabilities (30.9) (2.4)
(1,276.8) (1,317.4)
Net assets 790.7 654.8
Shareholders' equity
Equity share capital 48.7 48.7
Share premium account 334.0 334.0
Revaluation reserve 486.2 431.6
Capital redemption reserve 6.8 6.8
Hedging reserve (34.3) (40.8)
Own shares (108.3) (110.2)
Retained earnings 57.6 (15.3)
Total equity 790.7 654.8
GROUP STATEMENT OF CHANGES IN EQUITY
For the 52 weeks ended 27 September 2025
Equity Share Revaluation reserve Capital Hedging Own Retained Total
share premium redemption reserve shares earnings equity
capital account reserve
£m £m £m £m £m £m £m £m
At 29 September 2024 48.7 334.0 431.6 6.8 (40.8) (110.2) (15.3) 654.8
Profit for the period - - - - - - 71.6 71.6
Remeasurement of retirement benefits - - - - - - 1.5 1.5
Tax on remeasurement of retirement benefits - - - - - - (0.4) (0.4)
Gains on cash flow hedges - - - - 1.9 - - 1.9
Transfers to the income statement on cash flow hedges - - - - 6.8 - - 6.8
Tax on hedging reserve movements - - - - (2.2) - - (2.2)
Property revaluation - - 109.8 - - - - 109.8
Property impairment - - (38.6) - - - - (38.6)
Deferred tax on properties - - (15.8) - - - - (15.8)
Total comprehensive income - - 55.4 - 6.5 - 72.7 134.6
Share-based payments - - - - - - 1.8 1.8
Tax on share-based payments - - - - - - 0.2 0.2
Purchase of own shares - - - - - (0.8) - (0.8)
Sale of own shares - - - - - 2.7 (2.6) 0.1
Transfer disposals to retained earnings - - (0.8) - - - 0.8 -
Total transactions with owners - - (0.8) - - 1.9 0.2 1.3
At 27 September 2025 48.7 334.0 486.2 6.8 (34.3) (108.3) 57.6 790.7
For the 52 weeks ended 28 September 2024
Equity Share Revaluation reserve Capital Hedging Own Retained Total
share premium redemption reserve shares earnings equity
capital account reserve
£m £m £m £m £m £m £m £m
At 1 October 2023 48.7 334.0 412.1 6.8 (44.4) (110.6) (6.5) 640.1
Loss for the period - - - - - - (18.5) (18.5)
Remeasurement of retirement benefits - - - - - - (6.9) (6.9)
Tax on remeasurement of retirement benefits - - - - - - 1.7 1.7
Losses on cash flow hedges - - - - (2.8) - - (2.8)
Transfers to the income statement on cash flow hedges - - - - 7.6 - - 7.6
Tax on hedging reserve movements - - - - (1.2) - - (1.2)
Other comprehensive expense of associates - - - - - - (0.1) (0.1)
Property revaluation - - 80.8 - - - - 80.8
Property impairment - - (39.8) - - - - (39.8)
Deferred tax on properties - - (9.8) - - - - (9.8)
Total comprehensive income/(expense) - - 31.2 - 3.6 - (23.8) 11.0
Share-based payments - - - - - - 2.0 2.0
Tax on share-based payments - - - - - - 0.1 0.1
Sale of own shares - - - - - 0.4 (0.4) -
Transfer disposals to retained earnings - - (13.8) - - - 13.8 -
Transfer tax to retained earnings - - 2.1 - - - (2.1) -
Changes in equity of associates - - - - - - 1.6 1.6
Total transactions with owners - - (11.7) - - 0.4 15.0 3.7
At 28 September 2024 48.7 334.0 431.6 6.8 (40.8) (110.2) (15.3) 654.8
NOTES
For the 52 weeks ended 27 September 2025
1 Accounting policies
The Group's principal accounting policies are set out below:
Basis of preparation
These consolidated financial statements for the 52 weeks ended 27 September
2025 (2024: 52 weeks ended 28 September 2024) have been prepared in accordance
with UK-adopted International Accounting Standards in conformity with the
requirements of the Companies Act 2006. The financial statements have been
prepared under the historical cost convention as modified by the revaluation
of certain items, principally effective freehold land and buildings, certain
financial instruments, retirement benefits and share-based payments, as
explained below.
The financial information contained in this preliminary announcement does not
constitute the Group's statutory accounts within the
meaning of section 434 of the Companies Act 2006. The financial information
has been extracted from the statutory accounts of the
Group for the 52 weeks ended 27 September 2025, which will be filed with the
Registrar of Companies in due course. The statutory
accounts for the 52 weeks ended 28 September 2024 have been delivered to the
Registrar of Companies. The auditor has reported on
those accounts; their reports were (i) unqualified and (ii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
Going concern
The Group successfully secured the extension of its bank facility, which was
due to expire in July 2026. The revised funding comprises a £200.0 million
bank facility available until July 2027 (of which £21.0 million was drawn at
27 September 2025) and a £5.0 million overdraft facility (of which £nil was
drawn at 27 September 2025). The Group's sources of funding also include its
securitised debt.
There are three covenants associated with the Group's amended bank borrowings
for the non-securitised group of companies - Debt Cover, Interest Cover and
Liquidity. The Debt Cover covenant is a measure of net borrowings to EBITDA,
the Interest Cover covenant is a measure of EBITDA to finance charges, and the
Liquidity covenant is a measure of headroom on the Group's bank borrowings.
The covenant levels remain unchanged except for the Interest Cover covenant
which does not step up to 2.0 times until 3 April 2027 (previously 28 March
2026).
There are two covenants associated with the Group's securitised debt. The
FCF DSCR is a measure of free cash flow to debt service for the group headed
by Marston's Pubs Parent Limited and the Net Worth is derived from the net
assets of that group of companies.
The Directors have performed an assessment of going concern over the period of
12 months from the date of signing these financial statements, to assess the
adequacy of the Group's financial resources. In performing their assessment,
the Directors considered the Group's financial position and exposure to
principal risks, including the risk of 'uncertain economic and geopolitical
outlook', in which high inflation, slow GDP growth and elevated interest rates
may lead to lower discretionary spending on leisure activities, leading to
reduced footfall and average spend per visit. This assessment predates the
Autumn Budget 2025 and therefore does not include the impact of any specific
measures which may be announced. However, downsides are considered in this
going concern assessment as set out below.
The Group's base case forecast assumes moderate sales price increases and
operational costs (that have not already been secured) rising broadly in line
with inflation together with continuing progress on the margin expansion
programme. The conclusion of this assessment was that the Directors are
satisfied that the Group has adequate liquidity, is not forecast to breach any
covenants within its banking group or securitisation in its base case forecast
and has sufficient resources to continue in operational existence for a period
of at least 12 months from the date of approval of these financial
statements.
Due to the uncertain economic and geopolitical outlook, risk of further
inflationary pressures and the potential impact of this on guest sentiment,
the Group has analysed a downside scenario in which a lower level of sales are
achieved compared to the base case forecast with additional costs beyond those
forecast in the base case and variable costs flexing with the reduced volume,
excluding any potential mitigating management actions. The result of this
downside scenario is that the Group would still have sufficient liquidity to
settle liabilities as they fall due and headroom within its financial
covenants throughout the going concern review period.
The Group has also performed a reverse stress test case, which analyses to
what extent sales would need to decrease from the base case in order to breach
financial covenants, with similar cost assumptions to that of the base case
forecast and variable costs flexing with the reduced volume. This reverse
stress test shows that the Group could withstand a reduction in sales of over
10% from those assessed in the base case throughout the going concern period,
excluding any mitigating actions other than the removal of discretionary
employee reward payments. The Directors consider this scenario to be remote
as, other than when the business was closed during the pandemic, the Group has
never experienced sales declines to this level. Additionally, the Group could
take management actions within the Directors' control including deferral or
reduction of discretionary spend to partially mitigate the financial impact.
Accordingly, the financial statements have been prepared on the going concern
basis.
Key estimates and significant judgements
Under IFRS the Group is required to make estimates and assumptions that affect
the application of policies and reported amounts. Estimates and judgements
are continually evaluated and are based on historical experience and other
factors including expectations of future events that are believed to be
reasonable under the circumstances. Actual results may differ from these
estimates.
The following are the critical judgements, apart from those involving
estimates (which are dealt with separately below), that the Directors have
made in the process of applying the Group's accounting policies and that have
had the most significant effect on the amounts recognised in the financial
statements in the current and prior periods:
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
1 Accounting policies (continued)
Key estimates and significant judgements (continued)
Non-underlying(1) items
· Determination of items to be classified as non-underlying(1).
Discontinued operations
· Determination of income from associates representing a separate
major line of business resulting in the classification as a discontinued
operation.
The following estimates and assumptions have a significant risk of causing a
material adjustment to the carrying amount of assets and liabilities:
Property, plant and equipment
· Valuation of effective freehold land and buildings.
Retirement benefits
· Actuarial assumptions in respect of the defined benefit pension
plan, which include discount rates, rates of increase in pensions, inflation
rates and life expectancies.
Financial instruments
· Valuation and accounting treatment of derivative financial
instruments.
2 Segment reporting
The Group is considered to have one operating segment under IFRS 8 'Operating
Segments' and therefore no disclosures are presented. This is in line with
the reporting to the chief operating decision maker and the operational
structure of the business. The measure of profit or loss reviewed by the
chief operating decision maker is underlying(1) profit/(loss) before tax for
the total of continuing and discontinued operations.
Geographical areas
All of the Group's revenue is generated in the UK. All of the Group's
material assets are located in the UK.
3 Revenue
2025 2024
Revenue £m £m
Sales from managed and pub partnership sites 871.9 864.6
Wholesale sales 19.9 26.2
Revenue from contracts with customers 891.8 890.8
Rental income 6.1 7.8
Total revenue 897.9 898.6
4 NON-Underlying(1) items
2025 2024
£m £m
Non-underlying(1) operating items from continuing operations
Net impairment reversal of freehold and leasehold properties and other (22.9) (5.7)
operating charges
Reorganisation, restructuring and relocation costs and other operating charges 3.1 0.7
Duplication costs - 0.5
(19.8) (4.5)
Non-underlying(1) non-operating items from continuing operations
Interest rate swap movements 3.6 32.2
3.6 32.2
Total non-underlying(1) items from continuing operations (16.2) 27.7
Non-underlying(1) items from discontinued operations
Non-underlying(1) loss from associates - 16.6
Impairment of associate - 8.0
Loss on disposal of associate - 11.9
- 36.5
Total non-underlying(1) items (16.2) 64.2
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
4 NON-Underlying(1) items (CONTINUED)
Net impairment reversal of freehold and leasehold properties and other
operating charges
At 29 June 2025 the Group's effective freehold properties were revalued by
independent chartered surveyors on an open market value basis. The Group
also undertook an impairment review of its leasehold properties in the current
and prior period.
The revaluation and impairment adjustments in respect of the above were
recognised in the revaluation reserve or income statement as appropriate.
The amount recognised in the income statement comprises:
2025 2024
£m £m
Impairment of property, plant and equipment 30.7 37.4
Reversal of past impairment of property, plant and equipment (54.0) (43.4)
Impairment of assets held for sale 0.2 0.1
Valuation fees 0.2 0.2
(22.9) (5.7)
Reorganisation, restructuring and relocation costs and other operating charges
As previously reported during the interim results for the 26 weeks ended 29
March 2025, during the current period the Group commenced a programme to align
and resource teams against the Group's strategic priorities and reduce cost
for future resilience of the business. The costs identified as
non-underlying(1) in the current period are one-off headcount-related costs
which are expected to be short-term in nature. The cost of implementing this
programme in the current period was £3.1 million (2024: £nil), of which
£2.0 million was incurred in the first half of the current period. This is
a cash cost of which £2.5 million was paid in the current period and £0.6
million will be paid in the subsequent period. The cost has been recorded
within non-underlying(1) items in the income statement based on its
significance, nature, expected infrequency and consistency with treatment of
similar historical programmes.
During the prior period, the Group completed the implementation of an
operational programme to simplify the business and drive efficiencies. The
cost of this programme in the prior period was £0.7 million.
Interest rate swap movements
The Group's interest rate swaps are revalued to fair value at each balance
sheet date. These fair value (gains)/losses have been recognised in the
hedging reserve or the income statement as appropriate. Reclassifications
within the income statement and/or with the hedging reserve have also been
made as required.
52 weeks to 27 September 2025 52 weeks to 28 September 2024
Hedging reserve Underlying(1) net finance costs Non-underlying(1) interest rate swap movements Hedging reserve Underlying(1) net finance costs Non-underlying(1) interest rate swap movements
£m £m £m £m £m £m
Interest rate swaps designated as part of a hedging relationship:
Effective portion
(Gain)/loss on change in fair value (1.9) - - 2.8 - -
Reclassification in respect of cash received 0.1 (0.1) - 0.4 (0.4) -
(1.8) (0.1) - 3.2 (0.4) -
Ineffective portion
Loss on change in fair value - - 0.6 - - 0.2
Reclassification in respect of cash paid - 0.6 (0.6) - 1.2 (1.2)
- 0.6 - - 1.2 (1.0)
Interest rate swaps not designated as part of a hedging relationship:
(Gain)/loss on change in fair value - - (3.1) - - 18.2
Reclassification in respect of cash paid/received - 0.2 (0.2) - (7.0) 7.0
- 0.2 (3.3) - (7.0) 25.2
Reclassification in respect of discontinued cash flow hedges (6.9) - 6.9 (8.0) - 8.0
(6.9) - 6.9 (8.0) - 8.0
Total interest rate swap movements (8.7) 0.7 3.6 (4.8) (6.2) 32.2
A loss of £0.6 million (2024: £0.2 million) on the ineffective portion of
the fair value movement of interest rate swaps designated as part of a hedging
relationship and a fair value gain of £3.1 million (2024: loss of £18.2
million) on interest rate swaps not designated as part of a hedging
relationship have also been recognised within non-underlying(1) items in the
income statement.
Cash paid of £0.6 million (2024: £1.2 million) in respect of interest rate
swaps designated as part of a hedging relationship and cash paid of £0.2
million (2024: received of £7.0 million) in respect of interest rate swaps
not designated as part of a hedging relationship were reclassified from
non-underlying(1) items to underlying(1) net finance costs to ensure that
underlying(1) net finance costs reflect the fixed rate paid on the associated
debt.
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
4 NON-Underlying(1) items (CONTINUED)
Interest rate swap movements (continued)
Finally, £6.9 million (2024: £8.0 million) of the balance remaining in the
hedging reserve in respect of discontinued cash flow hedges has been
reclassified as charge to the income statement within non-underlying(1) items.
The treatment of the amounts as non-underlying(1) has been made based on their
significance, nature and consistency with previous classification. Unless
specified, the movements have no cash impact.
Prior period non-underlying(1) items
Duplication costs
On 17 November 2023 Andrew Andrea stepped down from his role as CEO of the
Group and, following an external process, Justin Platt was appointed as CEO
from 10 January 2024. During the prior period duplicated costs were incurred
as a result of the change in CEO which were unusual and one-off for Marston's.
The duplicated costs have been recorded within non-underlying(1) items in the
income statement based on their nature and expected infrequency.
Non-underlying(1) loss from associates
The Group's associate, Carlsberg Marston's Limited (CMBC), recognised an
impairment (of which the Group's share was £14.0 million) during the prior
period in relation to some of the ale brands that it held. The ale category
had been severely impacted by the COVID-19 pandemic, secular trends, and the
cost-of-living crisis, resulting in long-term expectations specifically for
the ale brands being updated. The brand impairment of £14.0 million was
material in the context of both the Group's total results and the
underlying(1) loss from associates of £0.5 million. The resulting brand
impairment, which had no cash impact, was recorded within non-underlying(1)
items in the income statement based on its significance, nature and expected
infrequency.
CMBC also recognised an onerous contract provision (of which the Group's share
was £2.6 million) during the prior period in relation to a specific porterage
contract that it held. The significant cost inflation experienced from the
cost-of-living crisis, alongside the increases in distribution costs over and
above what was reasonably anticipated, led to an acute and short-term (rather
than business-as-usual) environment of cost inflation which required an
onerous provision to be recorded for this specific contract. The onerous
contract provision of £2.6 million was material in the context of the
underlying(1) loss from associates of £0.5 million. The resulting onerous
contract provision, which had no cash impact, was recorded within
non-underlying(1) items in the income statement based on its significance,
nature and expected infrequency.
Impairment of associate and loss on disposal of associate
On 31 July 2024, Marston's PLC completed the sale of its remaining non-core
brewing assets, being its 40% interest in Carlsberg Marston's Limited (CMBC),
to a subsidiary of Carlsberg A/S for £206.0 million in cash, to create a
business entirely focused on pubs.
An impairment assessment over the carrying value of the Group's investment in
CMBC was performed immediately prior to disposal on 31 July 2024. The result
of the impairment assessment was an impairment to the carrying value of the
Group's investment in CMBC of £8.0 million. The remaining difference between
the newly impaired carrying value of the investment and the net disposal
proceeds represented a loss on disposal of £11.9 million.
These costs were recorded within non-underlying(1) items in the income
statement based on their materiality, nature and expected infrequency.
Impact of taxation
The current tax credit relating to the above non-underlying(1) items amounts
to £0.5 million (2024: £0.1 million). The deferred tax credit relating to
the above non-underlying(1) items amounts to £1.1 million (2024: £12.0
million).
5 Finance costs and income
2025 2024
Finance costs £m £m
Bank borrowings 11.9 25.4
Securitised debt 34.8 35.3
Lease liabilities 19.0 19.2
Other lease related borrowings 23.3 22.9
Other interest payable and similar charges 1.0 3.7
Total finance costs 90.0 106.5
Finance income
Finance lease and other interest receivable (2.2) (1.4)
Total finance income (2.2) (1.4)
Interest rate swap movements
Hedge ineffectiveness on cash flow hedges (net of cash paid) - (1.0)
Change in carrying value of interest rate swaps (3.3) 25.2
Transfer of hedging reserve balance in respect of discontinued hedges 6.9 8.0
3.6 32.2
Net finance costs for continuing operations 91.4 137.3
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
6 Taxation
2025 2024
Income statement £m £m
Current tax
Current period 6.7 4.6
Adjustments in respect of prior periods 0.2 -
Credit in respect of tax on non-underlying(1) items (0.5) (0.1)
6.4 4.5
Deferred tax
Current period 12.4 5.2
Adjustments in respect of prior periods (1.0) (0.8)
Credit in respect of tax on non-underlying(1) items (1.1) (12.0)
10.3 (7.6)
Taxation charge/(credit) reported in the income statement from continuing 16.7 (3.1)
operations
2025 2024
Statement of comprehensive income £m £m
Remeasurement of retirement benefits 0.4 (1.7)
Impairment and revaluation of properties 15.8 9.8
Hedging reserve movements 2.2 1.2
Taxation charge reported in the statement of comprehensive income 18.4 9.3
A taxation credit in relation to tax on share-based payments of £0.2 million
(2024: £0.1 million) has been recognised directly in equity.
The actual tax rate for the period is lower (2024: lower) than the standard
rate of corporation tax of 25% (2024: 25%). The differences are explained
below:
2025 2024
Tax reconciliation £m £m
Profit before tax from continuing operations 88.3 14.4
Profit before tax multiplied by the corporation tax rate of 25% (2024: 25%) 22.1 3.6
Effect of:
Adjustments in respect of prior periods (0.8) (0.8)
Recognition of capital losses not previously recognised (5.4) (5.4)
Non-qualifying depreciation 1.4 1.3
Property items taxed on a different basis to accounting entries (0.2) (1.1)
Costs not deductible for tax purposes 0.3 0.1
Other amounts on which tax relief is available (0.7) (0.8)
Taxation charge/(credit) for continuing operations 16.7 (3.1)
In December 2021, the Organisation for Economic Co-operation and Development
(OECD) published the Pillar Two model rules to introduce a global minimum
effective tax rate of 15%, under its Inclusive Framework on Base Erosion and
Profit Shifting (BEPS).
UK legislation adopting the Pillar Two rules was substantively enacted on 20
June 2023 and will apply to the Group for the 52 weeks ended 27 September 2025
onwards.
Based on its assessment of the trading results, the Group anticipates that it
will benefit from the transitional safe harbour rules and does not expect to
pay any Pillar Two top-up tax in respect of the 52 weeks ended 27 September
2025.
The Group has applied the exemption under the IAS 12 'Income Taxes' amendment
for recognising and disclosing information about deferred tax assets and
liabilities relating to Pillar Two income taxes.
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
7 Earnings per ordinary share
Basic earnings/(loss) per share are calculated by dividing the profit/(loss)
attributable to equity shareholders by the weighted average number of ordinary
shares in issue during the period, excluding treasury shares and those held on
trust for employee share schemes.
For diluted earnings/(loss) per share, the weighted average number of ordinary
shares in issue is adjusted to assume conversion of all dilutive potential
ordinary shares. These represent share options granted to employees where
the exercise price is less than the weighted average market price of the
Company's shares during the period.
Underlying(1) earnings per share figures are presented to exclude the effect
of non-underlying(1) items. The Directors consider that the supplementary
figures are a useful indicator of performance.
2025 2024
Earnings Per share Per share
amount Earnings amount
£m p £m p
Basic earnings/(loss) per share
Total 71.6 11.3 (18.5) (2.9)
Continuing 71.6 11.3 17.5 2.8
Discontinued - - (36.0) (5.7)
Diluted earnings/(loss) per share
Total 71.6 11.1 (18.5) (2.8)
Continuing 71.6 11.1 17.5 2.7
Discontinued - - (36.0) (5.5)
Underlying(1) earnings per share figures
Basic underlying(1) earnings per share
Total 53.8 8.5 33.6 5.3
Continuing 53.8 8.5 33.1 5.2
Discontinued - - 0.5 0.1
Diluted underlying(1) earnings per share
Total 53.8 8.3 33.6 5.1
Continuing 53.8 8.3 33.1 5.0
Discontinued - - 0.5 0.1
2025 2024
m m
Basic weighted average number of shares 633.2 633.5
Dilutive potential ordinary shares 11.9 23.0
Diluted weighted average number of shares 645.1 656.5
8 property, plant and equipment
Effective Fixtures,
freehold Leasehold fittings,
land and land and tools and
buildings buildings equipment Total
£m £m £m £m
Cost or valuation
At 29 September 2024 1,661.7 430.0 276.1 2,367.8
Additions 31.5 14.2 19.0 64.7
Disposals (2.7) (5.3) (21.9) (29.9)
Revaluation 96.3 - - 96.3
At 27 September 2025 1,786.8 438.9 273.2 2,498.9
Depreciation and impairment reversal
At 29 September 2024 - 149.0 149.8 298.8
Charge for the period - 14.2 26.1 40.3
Disposals - (2.0) (21.3) (23.3)
Impairment - 1.8 - 1.8
At 27 September 2025 - 163.0 154.6 317.6
Net book amount at 28 September 2024 1,661.7 281.0 126.3 2,069.0
Net book amount at 27 September 2025 1,786.8 275.9 118.6 2,181.3
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
8 property, plant and equipment (CONTINUED)
Effective Fixtures,
freehold Leasehold fittings,
land and land and tools and
buildings buildings equipment Total
£m £m £m £m
Cost or valuation
At 1 October 2023 1,645.1 434.4 280.1 2,359.6
Additions 17.2 10.7 22.5 50.4
Disposals (44.7) (15.1) (26.4) (86.2)
Net transfers to assets held for sale (1.2) - (0.1) (1.3)
Revaluation 45.3 - - 45.3
At 28 September 2024 1,661.7 430.0 276.1 2,367.8
Depreciation and impairment
At 1 October 2023 - 147.6 147.2 294.8
Charge for the period - 13.8 26.2 40.0
Disposals - (10.7) (23.6) (34.3)
Impairment - (1.7) - (1.7)
At 28 September 2024 - 149.0 149.8 298.8
Net book amount at 30 September 2023 1,645.1 286.8 132.9 2,064.8
Net book amount at 28 September 2024 1,661.7 281.0 126.3 2,069.0
Revaluation/impairment
At 29 June 2025 independent chartered surveyors revalued the Group's effective
freehold properties on an open market value basis. During the current and
prior period various assets were also reviewed for impairment and/or material
changes in value. These valuation adjustments were recognised in the
revaluation reserve or the income statement as appropriate.
2025 2024
£m £m
Income statement
Impairment (30.7) (37.4)
Reversal of past impairment 54.0 43.4
23.3 6.0
Revaluation reserve
Unrealised revaluation surplus 109.8 80.8
Reversal of past revaluation surplus (38.6) (39.8)
71.2 41.0
Net increase in shareholders' equity/property, plant and equipment 94.5 47.0
A reasonably possible increase of 10% in the multiple would increase the fair
value by £186.1 million and a reasonably possible decrease of 10% in the
multiple would decrease the fair value by £186.1 million. A reasonably
possible increase of 10% in the fair maintainable trade would increase the
fair value by £186.1 million and a reasonably possible decrease of 10% in the
fair maintainable trade would decrease the fair value by £186.1 million.
These are based on the top ends of observable multiples achieved in the
market and historical movements in the average fair maintainable trade.
Fair maintainable trade is a measure of sustainable trading performance which
focuses on medium to long term trends. Short term fluctuations in trading
results may not be fully reflected in fair maintainable trade until they are
demonstrated to be continuing in nature.
The Group's effective freehold land and buildings are revalued by external
independent qualified valuers on an annual basis using open market values so
that the carrying value of an asset does not differ significantly from its
fair value at the balance sheet date. The annual valuations are determined
via third party inspection of approximately a third of the sites, and a
desktop valuation of the remaining two-thirds of the sites, such that all
sites are individually inspected every three years. The last external
valuation of the Group's effective freehold land and buildings was performed
as at 29 June 2025. The Group has an internal team of qualified valuers and
at each reporting date the estate is reviewed for any indication of
significant changes in value. Where this is the case internal valuations are
performed on a basis consistent with those performed externally. The Group
has concluded that the valuation as at 29 June 2025 does not differ materially
from that which would have been determined using fair value as at 27 September
2025.
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
8 property, plant and equipment (CONTINUED)
Impairment testing of leasehold properties
Leasehold properties, comprising leasehold land and buildings and associated
fixtures, fittings, tools and equipment and computer software, are held under
the cost model. These properties were reviewed for impairment in the current
and prior period by comparing the recoverable amount of each property to the
carrying amount of the assets. Recoverable amount is the higher of value in
use and fair value less costs to sell. The key assumptions used in the value
in use calculations were the future trading cash flows of the properties, a
pre-tax discount rate of 11.9% (2024: 12.2%) and a long-term growth rate of
2.0% (2024: 2.0%). No adjustment has been made in the current or prior
period for any potential climate change related impact as the future potential
additional cash inflows and outflows are not deemed to be a key assumption in
the value in use calculations.
Changes in these key assumptions could impact the impairment charge/reversal
recognised for these assets. The future trading cash flows used in the value
in use calculations are property level EBITDA less maintenance expenditure
forecasts. If the forecast cash flows were to decline by 10% then there
would be a £1.5 million increase in the impairment recognised. If the
pre-tax discount rate were to increase by 0.5% it would increase the
impairment by £0.4 million. If the long-term growth rate were to decrease
by 0.5% it would increase the impairment by £0.6 million.
9 Net debt
2025 2024
Analysis of net debt £m £m
Cash and cash equivalents
Cash at bank and in hand 34.8 44.4
34.8 44.4
Financial assets
Other cash deposits 1.1 1.1
1.1 1.1
Debt due within one year
Bank borrowings 1.8 2.5
Securitised debt (45.9) (43.5)
Lease liabilities (18.6) (17.7)
Other lease related borrowings 0.5 0.5
(62.2) (58.2)
Debt due after one year
Bank borrowings (19.5) (33.0)
Securitised debt (470.8) (516.7)
Lease liabilities (349.6) (356.0)
Other lease related borrowings (339.4) (338.9)
Preference shares (0.1) (0.1)
(1,179.4) (1,244.7)
Net debt (1,205.7) (1,257.4)
Other cash deposits and cash and cash equivalents include deposits securing
letters of credit for reinsurance contracts. Included within cash and cash
equivalents is an amount of £5.4 million (2024: £5.5 million) relating to
collateral held in the form of cash deposits. These amounts are both
considered to be restricted cash. In addition, any other cash held in
connection with the securitised business is governed by certain restrictions
under the covenants associated with the securitisation.
2025 2024
Reconciliation of net cash flow to movement in net debt £m £m
(Decrease)/increase in cash and cash equivalents in the period (9.6) 17.9
Decrease in other cash deposits - (2.0)
Cash outflow from movement in debt 66.4 293.9
Net cash inflow 56.8 309.8
Non-cash movements and deferred issue costs (5.1) (1.4)
Movement in net debt in the period 51.7 308.4
Net debt at beginning of the period (1,257.4) (1,565.8)
Net debt at end of the period (1,205.7) (1,257.4)
2025 2024
£m £m
Net debt excluding lease liabilities (837.5) (883.7)
Lease liabilities (368.2) (373.7)
Net debt (1,205.7) (1,257.4)
NOTES CONTINUED
For the 52 weeks ended 27 September 2025
9 Net debt (CONTINUED)
Changes in liabilities arising from financing activities are as follows:
2025 2024 (restated)
Derivative Total Derivative Total
Borrowings financial financing Borrowings financial financing
instruments liabilities instruments liabilities
£m £m £m £m £m £m
At beginning of the period (1,302.9) (59.0) (1,361.9) (1,595.4) (33.6) (1,629.0)
Cash flow 152.3 0.7 153.0 402.0 (4.2) 397.8
Changes in fair value - 4.4 4.4 - (21.2) (21.2)
Other changes (91.0) - (91.0) (109.5) - (109.5)
At end of the period (1,241.6) (53.9) (1,295.5) (1,302.9) (59.0) (1,361.9)
Comparative information has been restated to include changes in liabilities
arising from interest on financing activities, in addition to principal
movements.
10 Ordinary dividends on equity shares
No dividends were paid during the current or prior period. A final dividend
for 2025 has not been proposed.
Notes:
(a) The Annual Report and Accounts for the 52 weeks ended 27 September 2025
will be posted to shareholders on 12 December 2025. The Annual Report and
Accounts will be available to be downloaded from the Marston's PLC website:
www.marstonspubs.co.uk. Alternatively, copies will be obtainable from the
Group General Counsel & Company Secretary, Marston's PLC, St Johns House,
St Johns Square, Wolverhampton, WV2 4BH.
(b) The maintenance and integrity of the website is the responsibility of
the Directors. The work carried out by the auditors does not involve
consideration of these matters. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
ALTERNATIVE PERFORMANCE MEASURES
In addition to statutory financial measures, these full year results include
financial measures that are not defined or recognised under IFRS, all of which
the Group considers to be alternative performance measures (APMs). APMs
should not be regarded as a complete picture of the Group's financial
performance, which the Group presents within its total results.
The APMs are used by the Board and management to analyse operational and
financial performance and track the Group's progress against long-term
strategic plans. The APMs provide additional information to investors and
other external shareholders to enhance their understanding of the Group's
results and facilitate comparison with industry peers.
Capital expenditure (Capex)
Capital expenditure is the cost of acquiring and maintaining fixed assets,
comprising both maintenance and investment expenditure. It is a measure by
which the Group and interested stakeholders assess the level of investment in
the estate to maintain and increase the Group's profit. Capital expenditure
is the purchase of property, plant and equipment and intangible assets as
presented directly within the Group cash flow statement.
Loan to value
Loan to value is presented both for the Group's securitised debt and for the
Group's net debt excluding lease liabilities. The loan to value ratio is the
percentage of the amount borrowed against the value of the Group's assets.
2025 2024
2025
2024
£m £m
Securitised pubs and lodges 1,211.0 1,145.9
Non-securitised effective freehold pubs and lodges 671.9 618.5
1,882.9 1,764.4
Non-securitised leasehold pubs and lodges 274.1 282.8
Other non-core properties and administration assets 24.3 21.8
Property, plant and equipment total 2,181.3 2,069.0
Securitised debt due within one year 45.9 43.5
Securitised debt due after one year 470.8 516.7
516.7 560.2
Cash balances in respect of the securitisation (21.8) (34.0)
Securitised net debt 494.9 526.2
Loan to value of securitised net debt 41% 46%
Net debt excluding lease liabilities at end of the period 837.5 883.7
Loan to value of net debt excluding lease liabilities 44% 50%
Like-for-like (LFL) sales
LFL sales reflect sales for all pubs that were trading in the two periods
being compared expressed as a percentage. LFL sales from managed and pub
partnership sites includes food, accommodation and gaming machine income, and
excludes door income.
The inclusion of a pub within LFL sales is considered on a daily basis and a
pub is included within LFL sales for only the days within the trading period
where it meets the definition of LFL. A site is considered fully open for
trading if it generated more than £100 per day. If a site is acquired or
disposed of during the two periods being compared, LFL sales include the days
where the site is fully open for trading in both periods.
LFL sales is a widely used industry measure which provides better insight into
the trading performance of the Group as total revenue is impacted by
acquisitions, disposals, and investment into the estate through conversions
and refurbishments.
52 weeks to 52 weeks to LFL
27 September 2025
28 September 2024
£m £m %
LFL sales from managed and pub partnership sites 856.3 842.6 1.6
Non-LFL sales from managed and pub partnership sites 14.8 21.2
Door income 0.8 0.8
Sales from managed and pub partnership sites 871.9 864.6
Net asset value (NAV) per share
NAV per share is the value of net assets of the Group, divided by the number
of shares in issue excluding own shares held.
2025 2024
Net assets (£m) 790.7 654.8
Number of shares outstanding (m) 633.2 633.8
NAV per share (£) 1.25 1.03
ALTERNATIVE PERFORMANCE MEASURES (CONTINUED)
Net cash flow (NCF)
NCF is the increase/(decrease) in cash and cash equivalents in the period,
adjusted for movements in other cash deposits and the cash movement in debt.
NCF was used by the Group to determine targets for Long Term Incentive Plan
(LTIP) awards.
2025 2024
£m £m
Underlying EBITDA 205.1 193.0
Non-underlying EBITDA 19.8 (32.0)
Total EBITDA 224.9 161.0
Non-cash movements (21.5) 32.7
Decrease in provisions and other non-current liabilities (0.3) (0.9)
Cash adjusted total EBITDA 203.1 192.8
Income tax (paid)/received (5.3) 0.1
Working capital 3.0 8.2
Difference between defined benefit pension contributions paid and amounts (1.6) (7.5)
charged
Net cash inflow from operating activities (excluding dividends from 199.2 193.6
associates)
Net interest paid and finance lease capital repayments received (83.2) (98.2)
Purchase of property, plant and equipment and intangible assets (61.2) (46.2)
Arrangement costs of bank facilities and swap termination costs (0.9) (5.6)
Purchase of own shares (0.8) -
Proceeds from sale of own shares 0.1 -
Recurring free cash flow 53.2 43.6
Dividends from associates - 13.8
Sale of property, plant and equipment and assets held for sale 6.4 46.9
Disposal of associate (2.8) 205.5
Net cash flow 56.8 309.8
Cash outflow from movement in debt (66.4) (293.9)
Decrease in other cash deposits - 2.0
Net (decrease)/increase in cash and cash equivalents (9.6) 17.9
Net debt
Net debt is defined as the sum of cash and cash equivalents and other cash
deposits, less total borrowings, at the balance sheet date. Net debt is also
presented excluding lease liabilities. The net debt to EBITDA leverage ratio
is presented both inclusive and exclusive of IFRS 16 lease liabilities and the
associated EBITDA impact which is both post- and pre- IFRS 16 impacts
respectively.
2025 2024
£m £m
Underlying EBITDA under IFRS 16 205.1 192.5
Net rental charge (22.4) (21.7)
Underlying EBITDA pre- IFRS 16 182.7 170.8
Net debt including lease liabilities at end of the period 1,205.7 1,257.4
Net debt to EBITDA leverage including lease liabilities 5.9 6.5
Net debt excluding lease liabilities at end of the period 837.5 883.7
Net debt to EBITDA leverage excluding lease liabilities 4.6 5.2
Non-underlying
Non-underlying items are presented separately on the face of the income
statement and are defined as those items of income and expense which, because
of the size, nature and/or expected infrequency of the events giving rise to
them, are considered material, and merit separate presentation to enable users
of the financial statements to better understand elements of financial
performance in the period, and to facilitate comparison with future and prior
periods. As management of the freehold and leasehold property estate is an
essential and significant area of the business, the threshold for
classification of property-related items as non-underlying is higher than
other items.
Underlying results should not be regarded as a complete picture of the Group's
financial performance as they exclude specific items of income and expense.
The full financial performance of the Group is presented within its total
statutory results.
Operating profit/(loss)
Operating profit/(loss) is revenue less net operating expenses. Operating
profit/(loss) is presented directly on the Group income statement. It is not
defined in IFRS; however, it is a generally accepted profit measure.
Profit/(loss) before tax
Profit/(loss) before tax is profit/(loss) for the period presented before the
tax charge/credit for the period. Profit/(loss) before tax is presented
directly on the Group income statement. It is not defined in IFRS; however,
it is a generally accepted profit measure.
Recurring free cash flow (FCF)
Recurring FCF represents NCF adjusted for the sale of property, plant and
equipment and assets held for sale, disposal proceeds from the sale of the
Group's investment in Carlsberg Marston's Limited, and dividends received from
associates.
ALTERNATIVE PERFORMANCE MEASURES (CONTINUED)
Sales from managed and pub partnership sites
Sales from managed and pub partnership sites represents all revenue that is
generated in our managed and franchised pubs, which includes food, drink,
accommodation, gaming machine and door income.
Underlying earnings/(loss) per share
Underlying earnings/(loss) per share reflects the earnings attributable to
ordinary shareholders, adjusted to exclude non-underlying items.
Underlying EBITDA
Underlying EBITDA is the earnings before interest, tax, depreciation,
amortisation and non-underlying items. The Directors regularly use
underlying EBITDA as a key performance measure in assessing the Group's
profitability. The measure is considered useful to users of the financial
statements as it is a widely used industry measure which allows comparison to
peers and comparison of performance across periods and is used to determine
bonus outcomes for Directors' remuneration.
2025 2024
Underlying Non-underlying Total Underlying Non-underlying Total
£m £m £m £m £m £m
Continuing operations
Operating profit 159.9 19.8 179.7 147.2 4.5 151.7
Depreciation and amortisation 45.2 - 45.2 45.3 - 45.3
EBITDA 205.1 19.8 224.9 192.5 4.5 197.0
Discontinued operations
Profit/(loss) for the period from discontinued operations - - - 0.5 (36.5) (36.0)
- - - 0.5 (36.5) (36.0)
EBITDA for continuing and discontinued operations 205.1 19.8 224.9 193.0 (32.0) 161.0
2025 2024
£m £m
Operating profit 179.7 151.7
Non-underlying operating items (19.8) (4.5)
Underlying operating profit 159.9 147.2
Depreciation and amortisation 45.2 45.3
Underlying EBITDA 205.1 192.5
Revenue 897.9 898.6
Underlying operating margin 17.8% 16.4 %
Underlying EBITDA margin 22.8% 21.4 %
Wholesale sales
Wholesale sales represents revenue from contracts with customers generated
from our tenanted and leased pubs.
Year
The current year refers to the 52-week period ended 27 September 2025. The
prior year refers to the 52-week period ended 28 September 2024.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
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