REG - Marston's Plc - Trading Update for the 42 weeks to 20 July 2024

Marston'sAnnouncement

24/07/2024 07:00

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RNS Number : 5352X  Marston's PLC  24 July 2024

 

24 July 2024

 

MARSTON'S PLC

 

('Marston's' or 'the Group')

 

STRONG LFL SALES GROWTH YEAR TO DATE +5.2%

TRANSFORMATIONAL CMBC DISPOSAL

Marston's, a leading UK operator of c.1,370 pubs, today announces a trading
update for the 42 weeks to 20 July 2024.

Trading update

All sale comparisons are compared to the same period in FY2023.

Year-to-date, like-for-like sales increased by 5.2% and total retail sales in
the Group's managed and franchised pubs increased by 6.2% as our portfolio of
well-invested community pubs continues to demonstrate its appeal.

Like-for-like sales increased by 2.4% in the 16-week period to 20 July 2024,
compared to the same period last year. We have seen considerable uplift from
Euro 2024, with like-for-like sales for the week of the semi-final and final
matches rising by 8.0%. This has helped to lessen the impact of recent
unseasonably wet weather and a particularly strong comparative period last
year.

We continue to see positive momentum across both food and drink occasions.
Food sales have been particularly encouraging, with changes to our menu
proving increasingly popular with guests.

Carlsberg Marston's Limited ('CMBC')

As announced on 8 July 2024, the Group agreed to the sale of its 40% interest
in CMBC to a subsidiary of Carlsberg for £206 million in cash. This
strategic and transformational transaction will enable Marston's to become a
focused, pure-play pub company and supports a significant reduction in the
Group's net debt to <£1 billion in a significantly accelerated timeframe.
The transaction is expected to be accretive on adjusted earnings per share.

On 11 July 2024, the Financial Conduct Authority confirmed the changes to the
UK Listing Rules, one of which means that shareholder approval is no longer
required for Class 1 transactions. These changes are due to come into effect
on 29 July 2024. The Board can therefore confirm that its intention is to
waive the requirement for the transaction to gain shareholder consent when the
new UK Listing Rules come into force. Completion of the transaction is
targeted for 31 July 2024.

Further announcements will be made as and when appropriate.

Outlook

Debt reduction remains a central focus for the management team and we intend
to put financing in place that is better suited to the new level of leverage
in due course. Marston's will provide an update to the existing capital
allocation framework at an Investor Day in the autumn.

The trading momentum seen year-to-date provides the Board with confidence
that, adjusting for the impact of CMBC, performance will be in line with
market expectations.

Commenting, Justin Platt, CEO said:

"The continued positive trading momentum carried through from H1 has been
encouraging. This is a testament to the focus and energy of our team, who are
dedicated to giving our guests the very best pub experiences. The disposal of
our 40% stake in CMBC marks a pivotal step for Marston's, allowing us to
become a pure play hospitality business. I look forward to delivering on the
opportunities a focused pub business will provide."

Forthcoming events

Please find below the forthcoming reporting dates for Marston's, which are
also available on the investor calendar on our website -
https://www.marstonspubs.co.uk/investors/
(https://www.marstonspubs.co.uk/investors/)

Year-end trading statement                                9
October 2024

2024 Preliminary results
 3 December 2024

 

Enquiries:

Marston's PLC

Justin Platt,
CEO
Tel: 01902 329516

Hayleigh Lupino, CFO

Matthew Lee, Investor Relations
matthew.lee@marstons.co.uk

Rebecca Jamieson, Investor Relations
rebecca.jamieson@marstons.co.uk

 

Instinctif Partners (Media)

Justine
Warren
            Tel: 020 7457 2010/2005

Matthew Smallwood

Joe Quinlan

 

Notes to editors

Marston's PLC, whose shares are listed on the London Stock Exchange under the
ticker MARS, is a leading pub operator with an estate of c.1,370 pubs
nationally, comprising managed, partnership ('franchised') and tenanted and
leased pubs. Marston's employs around c.10,000 people. More information is
available at: https://www.marstonspubs.co.uk/
(https://www.marstonspubs.co.uk/) .

 

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