MARSTON'S PLC INTERIM MANAGEMENT STATEMENT
42 weeks to 21 July 2012
Trading
Our performance has been satisfactory in recent weeks in view of the very wet weather conditions affecting summer trading to date. We have continued to make progress across the business, with profitability in line with our expectations.
In managed pubs, like-for-like sales for the 42 week period were 2.2% ahead of last year, including like-for-like food sales growth of 2.4% and like-for-like wet sales growth of 2.1%. In the 10 week period since 12 May, like-for-like sales increased by 1.6%. Operating margin is slightly above last year, and we remain on track to complete 25 of our high return new-build pub restaurants in the current financial year.
In our tenanted and franchised pubs underlying trends have continued to improve with operating profit estimated to be 3.2% ahead of last year. This reflects a strong performance in the franchise estate, which now operates in around 450 pubs, and continued stability and modest growth in the traditional tenanted and leased estate.
In brewing, we have continued to increase market share with own-brewed beer volumes up around 2% versus last year.
Net debt and cash flow are in line with expectations.
Commenting, Ralph Findlay, Chief Executive Officer said:
"Our performance to date demonstrates that our focus on offering great value for money underpinned by high service levels remains attractive to our customers despite the wider economic challenges. In recent weeks we have achieved sales growth despite the poor weather, helped by key trading events including the Jubilee weekend, Euro 2012 and Father's Day. By the end of this financial year we will have built around 60 new pub-restaurants in three years, and we have a clear site pipeline for future development."
