Marston's LFLs up 7% and food up 14%
Midlands based brewer and pub operator Martson's has announced like-for-like sales in its managed pubs were 7.0 % ahead of last year in the 24 weeks to 17 March 2007, including like-for-like food sales growth of 13.9 %.
In Marston's Pub Company, the tenanted and leased pub division, trading was "satisfactory" with continued growth in average profit per pub compared to last year.
The company said total beer volumes remained below last year in Marston's Beer Company, although premium ale volumes and market share had increased.
Marston's also said its marketing investment in premium ale, particularly Marston's Pedigree, had been increased through sponsorship of the England and Wales Cricket Board (the 'ECB') and, more recently, becoming the principal sponsor of Sky Sports televised coverage of the Cricket World Cup.
A statement said: "Underlying margins have been in line with expectations and costs well controlled, notwithstanding significantly higher energy costs and the 5.9% increase in the minimum wage from October 2006."
The Eldridge Pope estateEldridge Pope was acquired by Marston's on 25 January 2007 for £155.1 million.
The company said performance since the acquisition had been strong and in line with expectations.
A statement read: "Like-for-like sales growth in the 95 managed pubs in the 24 weeks to 17 March 2007 was similar to that achieved in Marston's Inns and Taverns.
"As expected, the trading profit contribution from Eldridge Pope to our half-year results will be modest due to seasonality and the fact that, as planned, synergies of approximately £4.6 million per annum will start to be realised from April 2007.
"The integration of Eldridge Pope is well advanced, with full systems integration anticipated from 31 March 2007.
"The acquisition of Eldridge Pope is expected to be earnings enhancing in the first full financial year following the acquisition, and broadly earnings neutral in the current financial year."
Estate developmentIn the first half-year, The company said it was looking to continue its acquisitions programme.
Marston's Inns and Taverns opened 7 new managed pubs: in Brighton, London, Hertfordshire, Cheshire, Nuneaton, Bristol and Exeter.
The satement read: "We expect to open around 20 new sites or acquired managed pubs this year.
"Our new build programme continues to offer attractive growth opportunities and returns.
"Marston's Pub Company has acquired 42 tenanted or leased pubs to date, including the acquisition of Sovereign Inns, an estate of 33 freehold pubs across the Midlands, for £19.4 million on 16 January 2007. Our first 'new-build' tenanted pub in Devizes, Wiltshire is expected to open in the second half-year."
