Marston's losses widen but Christmas bookings ‘encouraging'

Pub group Marston's pre-tax losses widened from £22m to £100m due to pandemic restrictions, but Christmas bookings were "encouraging and in line with 2019" following strong sales since reopening.

In its financial results for the year ended 2 October 2021, Marston's total revenue was £424m, 48% below last year. Like-for-like sales since restrictions lifted in July were 102% of 2019. The group had drawn down £190m of a £280m bank facility, providing headroom of £90m.

The group added that while the labour market remained "tight", particularly in city centres, it was "managing this well" although it had seen some small pockets of supply chain disruption.

Chief executive Andrew Andrea said: "While there are still some challenges to navigate over the months ahead, we believe the worst of the pandemic is now behind us and Marston's has emerged a stronger, more focused business which is in great shape. Importantly, consumer demand for the pub and the role which this great British institution plays, at the heart of communities up and down the country, has never been stronger.

"Over the last 18 months, the government provided much welcomed support to the hospitality industry, which has been so hard hit by the pandemic. We urge them to continue to assist the sector as it continues its recovery by maintaining VAT at 12.5%.

"Marston's enters the year ahead as a focused pub business with a clear, strategic plan, a profitable and cash generative business, a strong balance sheet and a 40% share in CMBC, our partnership with Carlsberg, which has such exciting potential. Our debt reduction plans remain on track and our well-invested, predominantly freehold, suburban pub estate is well placed to benefit from many of the positive consumer dynamics and drivers post pandemic. Whilst still early days, Christmas bookings look encouraging and we look to the future with renewed optimism."

During the period Marston's, which operates an estate of around 1,500 pubs and employs around 12,000 people, took on the operation of more than 150 SA Brain pubs in Wales and merged its brewing business with Carlsberg to create Carlsberg Marston's Brewing Company, in which it has a 40% holding.