REG - Marston's Plc - Trading for the 16-week period to 22 January 2022

Marston'sAnnouncement

25/01/2022 07:05

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RNS Number : 4401Z  Marston's PLC  25 January 2022

 

25 January 2022

 

MARSTON'S PLC

("Marston's" or "the Company")

Trading for the 16-week period to 22 January 2022

Marston's PLC issues the following trading update for the 16-week period to 12
January 2022 ahead of the Annual General Meeting to be held at 10am today.

Trading

Sales comparisons are compared to the same period in FY2019.

Total like-for-like sales for the period were (3.9)% vs. FY2019 reflecting the
impact of the Omicron variant and consumer sentiment related to the new
variant in the last 8 weeks. Total sales declined by (3.6)%. During the
five-week period of December like-for-like sales compared to the market
outside the M25* were 1% ahead of the market and total sales were 5% ahead.

Prior to the emergence of Omicron and subsequent introduction of renewed
restrictions, like-for-like sales in the first 8 weeks to 27 November were
+1.3%, as previously reported, with encouraging trading momentum.  As a
result of Government messaging including guidance to work from home and the
call to limit social distancing, like-for-like sales were (8.8)% in the last 8
weeks of the period under review.  Drinks sales have outperformed food sales
during the period.

From a geographic perspective, the Group's pubs in Wales and Scotland were
more significantly impacted than those in England by the tighter restrictions
that were enforced during the period.

Costs remain in line with the guidance provided at the Preliminary Results in
November.

Cash

During the period and as a result of the strong trading momentum prior to
restrictions being implemented, the Group generated positive cash inflow
despite the net outflow of £8 million for the one-off payments outlined in
the Preliminary Results relating to duty/VAT and the CMBC contingent
consideration.

As at 1 January 2022, bank borrowings were £199 million against the Group's
£280 million bank facility, which is in place until March 2024.

Commenting, Andrew Andrea, CEO, said:

"Whilst the emergence of the Omicron variant and subsequent Government
guidance temporarily impacted consumer sentiment, we remain confident that the
strong trading momentum which we were experiencing prior to that will resume.

"We welcome the various plans underway to gradually ease trading restrictions
in Scotland and Wales.  These, together with the reduction in the required
self-isolation period and anticipation of an imminent end to the work from
home directive, should enable some semblance of normalised trading patterns to
return.  Indeed, there is growing evidence over the most recent of weeks of
the New Year that consumer confidence is rebuilding, and guests are returning
to our pubs in greater numbers, which is encouraging. Importantly, Marston's
has a well invested, predominantly community pub estate which is well placed
to benefit from the pent-up consumer demand which we are confident remains."

*Peach Tracker

Forthcoming Events

Please find below the forthcoming reporting dates for the Group, which are
also available on the investor calendar on our website -
www.marstonspubs.co.uk/investors

 2022 Interim results       18 May 2022

 2022 Preliminary Results   29 November 2022

ENQUIRIES:

 Marston's PLC          Tel: 01902 329516           Instinctif Partners     Tel: 020 7457 2010/2005

 Andrew Andrea, Chief Executive Officer             Justine Warren

 Hayleigh Lupino, Chief Financial Officer           Matthew Smallwood

 

NOTES TO EDITORS

•               Marston's is a leading pub operator with a 40%
holding in Carlsberg Marston's Brewing Company

•               It operates an estate of c1,500 pubs situated
nationally, comprising managed, franchised and leased pubs

•               Marston's employs around 12,000 people

 

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