# Marston’s announces revenue growth in all trading segments

- Link: https://www.directorstalkinterviews.com/marstons-announces-revenue-growth-in-all-trading-segments/412799155
- Published: 2019-11-27T07:27:44+00:00
- Author: Amilia Stone

**Marston’s** (LON:MARS) has announced its preliminary results for the 52 weeks 
ended 28 September 2019.

 ·      **Revenue growth in all trading segments, earnings momentum in drinks businesses**

–  Underlying profit growth in Taverns and Beer Company

–  Statutory result principally reflects non-cash impact of asset impairment and
swap mark-to-market movements

·    **Sales growth in both pub segments**

–  LFL sales growth of 0.8% with growth in both wet-led and food pub segments

–  Continued sales and earnings growth in Taverns impressive against strong comparatives

–  Average profit per pub in line with last year reflecting balanced pub portfolio

–  8 new-build pub-restaurants, 15 wet-led pubs and 2 lodges opened in the year

·    **Continued growth in Brewing against challenging comparatives**

–  Total volumes up 1%, strong growth in independent free trade

–  2.5 million composite barrels of beer delivered to one in four of UK pubs

–  Completion of Charles Wells integration delivering £4 million targeted synergies

–  New 15 year licence agreement signed with Shipyard

·    **Operating cash flow +7%, fixed charge cover maintained; Net debt of £1,399
million in line with expectations**

–  Leverage before leasing of 4.7x, strong fixed charge cover maintained at 2.5x

–  CROCCE up 0.1% to 10.4%

·    **Final dividend maintained at 4.8p per share covered 1.8x by earnings**

·    **Ahead of schedule in progressing £200 million debt reduction targeted for
2020-2023:**

–  Targeting at least £70 million disposals of non-core pubs and assets in 2020,
£50 million of which have already been exchanged or completed

–  Further £40 million reduction in capital expenditure reflecting lower new-build
spend

**Forthcoming Events**

Please find below the forthcoming reporting dates for the Group, which are also 
available on the investor calendar on our website – [www.marstons.co.uk/investors](http://www.marstons.co.uk/investors)

> **Commenting, Ralph Findlay, Marston’s CEO said:**
> “We are making good progress with our debt reduction plans and are ahead of schedule
> in meeting the accelerated £70 million of disposal proceeds which we are targeting
> in the current year.
> “We continue to benefit from Marston’s balanced business model and our Taverns
> wet-led community pubs and brewing businesses have both once again outperformed
> the market, building on an outstanding year last year.  We are employing a renewed
> focus on the proposition in our food-led pubs and remain well placed to benefit
> from reduced supply in this market segment, of which there is beginning to be 
> some evidence.
> “Our principal focus remains to reduce our net debt by £200 million by 2023 – 
> or earlier – and the measures we are taking now will result in a high quality 
> business which is cash generative after dividends and capital expenditure.  Trading
> is on track for the initial weeks of the current year and we are well prepared
> for the all-important Christmas and New Year period.”

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