Marston's selling 60 more pubs with revenue on rise and pre-tax loss cut

Chief executive Andrew Andrea said more than 60 pubs across the country were likely to feature in the disposals programme.

They are on top of the 61 pubs already being sold off by the Wolverhampton-based group that were revealed in March. Those include the unique Crooked House pub between Dudley and Himley.

The aim for the sum to be raised from disposals has been raised from £15m to 20m to £55m to £65m.

The group is reviewing its non-core assets to determine which will be put up for sale.

In its latest half year results Marston's has revealed revenue has risen compared to the same time last year, with bosses saying 'consumers remain as keen as ever to socialise within the Great British Pub'.

The Wolverhampton-based group, which currently operates 1,440 pubs and employs 11,000, saw revenue climb to £407 million from £369.7m in the same period last year as it revealed its interim results for the 26 weeks ending April 1. The results meant, on an underlying basis, the firm’s pre-tax loss narrowed to £3.6m from £7.5m last year.

The group said drink sales continue to perform well and food sales were encouraging, demonstrating the trading resilience of the predominantly community pub estate

Mr Andrea said: "The strategy which we outlined 18 months ago is progressing well and generating positive results which is pleasing.

"Our H1 performance clearly demonstrates that consumers remain as keen as ever to celebrate – and socialise within – the Great British Pub.

"The macro environment is becoming increasingly stable and recent evidence suggests that both the cost outlook, and consumer confidence, are steadily improving.

"The actions we are taking are building a demonstrably better business and Marston's predominantly community pub estate continues to benefit from changing consumer lifestyles."

"We continue to deliver upon our clear strategic objective to reduce debt and progress our path to profitability, albeit the seasonality of our trading profile means that the majority of the Group's profit is characteristically H2 weighted.

"We have invested ahead in H1, to capitalise on the benefits of this in H2, and remain on track to meet our operating profit, cash generation and debt reduction targets for the year.

"We look forward to delivering further positive progress as the year unfolds and remain confident that we have the strategy and the team in place to do so, maximising the opportunities open to us in the future and delivering shareholder value."

Mr Andrea said that Marston's was on track with its Back to a Billion strategy, which aims for £1bn annual turnover by 2026.

He said two-thirds of operating profit came in the second half of the year with sales helped by better weather.

"We have invested in our pub gardens and that is playing to our benefit," he added.

"In the six weeks since year end sales had been helped by bank holidays.

Although the King's Coronation Saturday saw slow trade with people staying in, the glorious weather on the Sunday had seen "a cracking day's trade" for Marston's.

Profits were hit by high energy costs in the first half, but in the second half lower energy use would help.

Mr Andrea said the group had already fixed its energy costs for the first half of 2024-2025.

"Consumer confidence appears to be improving and our pubs are well placed to take advantage of that and we are not facing the same inflationary pressures that we faced last year," he added.

Mr Andrea said Marston's had settled into its new headquarters at St John's House.

"Our teams are very happy with it. It now feels like a proper home for us," he explained.