UK's Marston's H1 revenue falls 1.1% on pub closures

Marstons

12/05/2026 07:11

Overview

UK pub operator's interim revenue fell 1.1% yr/yr, impacted by pub closures for refurbishments

Underlying EBITDA held steady, with margin rising to 20.3% on cost control and efficiency gains

Company completed 60 new pub format refurbishments in H1, supporting future growth

Outlook

Marston's expects to deliver full-year market expectations for FY2026

Company targets recurring free cash flow of over £50 mln for the full year

Leverage on track to reduce to around 4.0x by year end

Result Drivers

PUB REFURBISHMENTS - Temporary closures for accelerated new pub format conversions reduced revenue by £2.2 mln and EBITDA by £2 mln in H1

COST CONTROL - Labour productivity initiatives and procurement savings offset inflation and higher wage costs, supporting margin gains

NEW PUB FORMATS - Refurbished sites delivered post-conversion sales up 20% and average ROIC of 35%, with digital Order & Pay driving higher spend and efficiency

Company press release: ID:nRSL8720Da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 422.70 mln
H1 Adjusted Revenue
Miss
GBP 422.70 mln
GBP 427 mln (1 Analyst)
H1 NAV Per Share
GBP 1.28
H1 Pretax Profit
GBP 23.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Marston's PLC is GBp80.00, about 57.5% above its May 11 closing price of GBp50.80

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)