Business
AGM Statement
AGM Statement.
About this update from Marston's Plc
[{"type":"text","content":"\n Marston's PLC\n25 January 2008\n\n 25th January 2008\n\n\n MARSTON'S PLC ('Marston's')\n\n\n AGM AND INTERIM MANAGEMENT STATEMENT\n 16 weeks to 19 January 2008\n\n\nMarston's PLC issues the following Interim Management Statement in advance of\nthe Company's Annual General Meeting to be held at 12 noon today.\n\n\nTrading\n\nGroup sales were 7.9% ahead of last year for the 16 week period reflecting the\nacquisitions of Sovereign Inns, Eldridge Pope and Ringwood Brewery in 2007.\n\nIn Marston's Inns & Taverns, our managed pub division, like-for-like sales\nincreased by 1.0% for the 16 week period to 19 January 2008 against strong\ncomparatives with reported like-for-like sales growth of 7.0% for the same\nperiod last year. In the last 8 weeks to 19 January 2008 like-for-like sales\nwere 0.1% ahead of last year. Food sales have continued to show excellent\nlike-for-like sales growth of 9.5%, although higher margin wet sales and machine\nincome were 2.6% and 9.8% below last year respectively.\n\nIn Marston's Pub Company, our tenanted and leased pub division, like-for-like\nprofit was 0.6% below last year in the period with growth in rental income\noffset by weak volumes and machine income in line with market trends.\n\nIn Marston's Beer Company overall volumes are below last year. However we have\ncontinued to increase market share in a weak beer market with regional premium\nales from the Jennings and Ringwood breweries showing good growth. This summer\nwe aim to build on our successful association with cricket in England and Wales\nthrough becoming the Official Beer of the Twenty20 Cup.\n\nCosts across the Group have been well controlled notwithstanding inflationary\npressures in brewing and food purchasing, but the changes in sales mix described\nabove will continue to have an impact on operating margins.\n\n\nFinancing and cash flow\n\nNet debt and cash flow are in line with our expectations. We announced on 19\nNovember 2007 the terms of a £330 million tap of our securitisation which\ncompleted on 22 November 2007. Following this refinancing nearly all of our\nborrowings are at effectively fixed rates with a blended cost of debt of\napproximately 6.1%.\n\nSince 30 September 2007 we have purchased 8.7 million shares at a total cost of\naround £29 million, meeting our stated target of returning £150 million to\nsharehol...