PUBS and brewing group Marston’s unveiled lower half-year profits – but reported signs of a “modest improvement” in trading since mid-February.
The company, which has 2,000 pubs and sells beer including Pedigree and Hobgoblin, posted profits before one-off items of £27.7m in the six months to April 4 – down by 21% on the previous 12 months.
Turnover of £307.5m was 2.8% below last year, while the company was also hit by higher raw material and energy costs.
Chief executive Ralph Findlay described the firm’s performance as resilient and said business in the second half had met expectations.
The brewing business and tenanted estate performed in line with first half trends – while Marston’s 500-strong estate of managed pubs lifted like-for-like sales by 3.2% in the nine weeks to April 18.
The period to mid-February was relatively weak, causing half-year profits to fall by 14.1% to £24.3m.
But Marston’s said trading had improved since then on the back of better weather and promotional offers.
Mr Findlay said: “We remain cautious because of the weak economy, but we are encouraged by the modest improvement in trading since mid-February.”
The tenanted and leased pubs division generated interim operating profits of £40.3m, down 7% on last year. Turnover in the beer division rose by 19% to £47.5m after the acquisition of the Wychwood Brewery.
