Business
Q1 Update
Q1 Update.
About this update from Marston's Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9950K\n Marston's PLC\n 08 January 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 8 January 2021\n \n \n \n \n \n MARSTON'S PLC \n \n \n (\"Marston's\" or \"the Company\")\n \n \n \n \n \n Q1 Update\n \n \n \n \n \n Marston's PLC issues the following update for the 13 weeks ended 2 January 2021.\n \n \n \n \n \n Trading and Business Outlook\n \n \n \n \n \n During the 13-week period, trading was materially disrupted due to Covid-19 related trading restrictions imposed across England, Scotland and Wales. Total pub revenues for the quarter were £54 million. \n \n \n \n \n \n Following the imposition of lockdowns across the UK in recent days, all our pubs are closed. We do not have certainty about the timing of reopening, but in view of comments from the Prime Minister about the potential for lifting restrictions as the vaccination programme progresses we anticipate that pubs will be closed for trading until March at the earliest, and expect some of the previous restrictions to remain on reopening.\n \n \n \n \n \n Despite this disruption, we remain focused on the strategic development of the business. \n The joint venture between Carlsberg UK and Marston's Beer Company completed on 30 October 2020 and we received initial proceeds of £233 million which were used to reduce debt. The profit on disposal of Marston's Beer Company into the joint venture is estimated to be around £280 million and the spot value of the contingent payment to be received in October 2021 is approximately £20 million.\n \n \n \n \n \n In December 2020 we \n exchanged contracts with SA Brain to operate its portfolio of 156 pubs in Wales, on a combination of leased and management contract arrangements. These pubs generated a pre-COVID outlet EBITDA of £14 million from which we will pay rent of £5.5 million per annum with effect from April 2021, representing a 2.5x rent cover. This transaction does not compromise our stated financial strategy of reducing borrowings to below £1 billion by financial year 2024. A more detailed presentation of the transaction will be set out on completion in early February.\n \n \n \n \n \n As we outlined in our preliminary results in December, when restrictions are li...