The pub operator says annual profit will beat already-raised forecasts, with sports-themed Grandstand conversions delivering 30% sales uplifts and returns above 30%.
Marston's (LSE: MARS) said full-year underlying pre-tax profit will come in above the top end of market expectations, a third straight year of sharp growth that leaves profits more than tripled since 2023, even as like-for-like sales across its 1,300-plus pubs finished the year broadly flat.
The upgrade was driven not by stronger footfall but by self-help: margins widened by around one percentage point on tighter cost control, while the group's Grandstand format, which turns pubs into sports and events venues, is delivering returns on investment above 30% and lifting sales at converted sites by roughly the same amount.
Marston's converted 60 pubs to the new format during the year and plans at least 100 more in the coming year, positioning the rollout as the main engine of growth going forward. Like-for-like sales fell 1.2% over the full year but improved to broadly flat in the final quarter, helped by a stronger summer and World Cup-driven trade.
The group has also made progress on its balance sheet, with net debt to earnings roughly halving since 2023 to about 4.2 times, and it said it now intends to announce a shareholder returns programme, likely in the form of share buybacks, alongside its full-year results.
Chief executive Justin Platt said the company enters the new year 'well set to drive our next phase of growth', pointing to three consecutive years of profit growth, margin improvement and strong recurring free cash flow. Investors will look to the full-year results for confirmation of the buyback programme and further detail on the pace of the Grandstand rollout.
This report is based on Marston's’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Ambitious Studio* | Rick Barrett on Unsplash.
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