New pub openings and a range of food offers have helped brewer and pub operator Marston's drive growth, despite the economic environment, the Midlands-based outfit revealed today.
The brewer said it expected to have 15 new pubs open by the end of its current financial year, with a further 20 pub restaurant sites up and running in 2011 and that such new assets, together with value for money offers and locally-brewed beers, would put the group "in a strong position to meet the forthcoming challenges".
While it said it was being cautious for the short term outlook of the economy, Marston's noted it was seeing better trading across all its operations, despite the impact on the consumer of the recent recession.
In an interim management statement Marston's said it was on track to meet its financial expectations for the year, having seen "improving trends in all trading divisions".
Recent business had been good, it added, although in line with many other operators good weather had played a bigger part in the uplift than the recent World Cup tournament.
Marston's reported like-for-like turnover across its managed pub estate for the 43 weeks to July 31, 2010, up 1.7 per cent on the same period last year. Like-for-like food sales were up 2.5 per cent and wet sales up 1.3 per cent.
The group said trading in the 11 weeks to the end of July resulted in like-for-like sales up 2.7 per cent.
It added its operating margin rose 0.6 per cent and that this would be maintained for the rest of the year.
Marston's said its tenanted pub operation had seen the decline in overall profits improve from a 4.5 per cent decline in the previous year to four per cent in the current trading period.
It said 86 per cent of its tenanted pubs were operating under substantive agreements and that 88 were working under the recently introduced Retail Agreement and "performing in line with expectations". By the end of the financial year Marston's expects 100 pubs to be on such deals.
While it didn't put a figure on own-brewed ale volumes, Marston's said it continued to outperform the UK beer market, currently down by around six per cent on the previous year. It said its premium ale volumes rose by three per cent.
Net debt and cashflow were "in line with expectations", according to the group.
Looking ahead, Marston's said it was concerned about the impact on consumers of the recent emergency Budget, but said it was encouraged by its recent trading performance.