Marston’s profits are soaring as the pub group’s festive bookings are booked earlier than last year

Marston’s is preparing for a bumper festive season, with Christmas bookings already ahead of 2023, as the pub group completes a year of solid profit growth.

The group recorded an adjusted pre-tax profit from continuing operations of £42.1 million for the year ended September 28, up 64.5 per cent year-on-year and exceeding Peel Hunt expectations of £40.5 million.

Marston’s, which operates more than 1,300 British pubs, said sales rose 3 percent to £898.6 million, with like-for-like sales up a whopping 4.8 percent thanks to higher food and beverage orders drinks.

Marston’s has benefited from a shift in spending towards suburban and rural areas, caused by more Britons working from home or moving from city centres.

The country has also been less affected than rivals like Fuller by industrial action on the railways and has kept inflationary pressures to a minimum by capping gas and electricity costs.

Despite heavy snowfall and storms in recent weeks, the company continued to enjoy healthy trading, with like-for-like sales up 2.1 percent in the first eight weeks of this financial year.

Marston’s noted that Christmas bookings were ‘ahead’ of last year, boosted by high booking rates in many locations, which the company said ‘positions us well for a successful December trading period’.

The Wolverhampton-based group also claimed that the additional costs it will incur from the recent budget are ‘manageable’ in relation to its short to medium term objectives.

From April 2025, companies will have to pay a 15 per cent premium on staff salaries above £5,000, instead of the current 13.8 per cent levy on wages above £9,100.

At the same time, those aged 21 and over will see their minimum hourly wage rise by 6.7 per cent to £12.21, while the minimum wage for 18 to 20 year olds will rise by 16.3 per cent to £10 per hour.

Marston’s significantly strengthened its balance sheet last year by selling its 40 percent stake in Carlsberg Marston’s Brewing Company, which helped reduce net debt by around £300m to £883.7m.

Justin Platt, CEO of Marston’s, said: ‘2024 has been a defining year for Marston’s as we embark on an exciting new chapter as a leading pure-play hospitality company.

“The sale of our stake in CMBC has been transformative, allowing us to significantly reduce debt, increase our flexibility and focus on what we do best: running great local pubs.”

CMBC was formed in 2020 after Marston’s merged its brewery operations with Carlsberg’s UK division in return for a cash payment of up to £273 million.

Marston’s shares were up 6.7 per cent at 42.95p on Tuesday morning, taking their gains over the past year to around 37 per cent.

Julie Palmer, partner at Begbies Traynor, said: ‘With a celebratory start to a strong start and a continued focus on debt reduction and operational efficiency, the group enters 2025 with a solid foundation for long-term sustainable growth.

“It’s a tough environment for British pub operators, but Marston’s has every reason to raise a glass to this year’s successes and hopefully look forward to more in the year ahead.”