Marston's increases 2013 final dividend by 5%

DividendMax Ltd.

Marston's increases 2013 final dividend by 5%

Revenue, Profit and Dividend Growth


Group revenue - up 9% to £782.9 million (2012: £719.7 million).

Underlying operating profit - up 7% to £168.3 million (2012: £157.9 million).

Underlying PBT - up 1% to £88.4 million, despite higher interest costs.

Return on capital - 0.5% improvement versus 2012.

Final dividend - up 5% to 4.1 pence per share.

Bank facility extension to November 2018 - extends maturity of Group debt.

Current trading - encouraging start to year.



Destination and Premium - strong sales and profit growth driven by new-build investment, including 22 openings in the year, performing ahead of target

Taverns - H2 profit growth in managed pubs and 600 pubs converted to franchise

Brewing - revenue and profit up with increased market share

Acceleration of new-builds - increased planned rate of expansion of new-builds to 25-30 sites per annum

Disposals of lower turnover wet-led pubs

- 130 pubs and other assets sold or exchanged during the year for c.£50 million

- Agreement to dispose of 202 sites for £90 million at 7.6x EBITDA multiple

- Target £60-70 million disposals per annum in 2014 and 2015 from Taverns estate


Destination and Premium -like-for-like sales up 3.1%; like-for-like food sales up 4.6%; like- for-like wet
 sales up 1.0%

Taverns- managed and franchised like-for-like sales up 2.1%; tenanted profits in line with

Leased -  like-for-like profits in line with last year

Brewing - in line with expectations

Commenting, Ralph Findlay, Chief Executive Officer, said:

"In 2013 we achieved good growth in turnover and operating profit despite significant challenges. This reflects our unstinting focus on what our customers want: excellent service and value for money in high quality pubs and bars. In 2013 we served 30 million meals, with food now the principal reason for around 80% of customer visits in our Destination pubs. 

Looking forward we will accelerate our high-return new-build programme whilst increasing the level of disposals from our lower turnover wet-led pubs. We have made an encouraging start to the new financial year and remain confident that our proven strategy is aligned to the underlying trends in the sector."


Companies mentioned