Marstons swings back to profit after cost cuts and event focus

Marston’s, the Wolverhampton-based pub chain, has announced a return to profit in the first half of its financial year. The company reported pre-tax profits of £19.5 million for the 26 weeks ending 29 March, a significant improvement from the £26.9 million loss recorded in the same period last year.

Chief Executive Justin Platt attributed the strong performance to momentum generated through enhanced operational efficiency and curated events. Total revenue remained broadly flat at £427.4 million, but like-for-like sales saw modest growth of 1.3 per cent during the half-year. Event-led customer engagement, including initiatives such as the Luke Humphries Cool Hand Cup darts tournament, has been pivotal in driving footfall across its estate.

Marston’s also reported a positive impact from public celebrations during the period, with Easter and Mother’s Day coinciding with trading. This alignment, combined with unseasonably sunny weather, boosted sales in the five weeks following the end of March by 10.5 per cent. Like-for-like sales for the extended trading period, up to 3 May, have increased by 2.9 per cent overall.

The company’s efforts to enhance labour productivity have also contributed to its turnaround. A newly implemented labour scheduling tool has enabled optimised staff rostering based on trading patterns, further improving operational efficiency. Marston’s is optimistic about its trajectory for the remainder of the year, highlighting a strong start to the summer season.

Platt expressed confidence in the firm’s strategy, stating, “With strong recent trading across our nationwide estate of great local pubs, we are excited for the summer months ahead.” Marston’s aims to open 30 new pubs during the year, with 18 already completed within budget and on schedule.

In addition to operational improvements, Marston’s has continued its strategy to reduce debt. Following the sale of its 40 per cent stake in the Carlsberg Marston’s Brewing Company joint venture for £206 million last July, the group has reduced net debt to £881.1 million, down from £1.16 billion at the end of the comparable period last year. The company is on track to meet underlying profit expectations of £66.8 million for the year.

Marston’s employs 10,000 people and is moving forward with plans to expand its presence while remaining disciplined with its financial commitments, positioning itself for sustainable growth in the challenging hospitality sector.