Business
Trading Update for the 42 weeks to 20 July 2024
Trading Update for the 42 weeks to 20 July 2024.
About this update from Marston's Plc
[{"type":"text","content":"\n\n\n \n24 July 2024\n \nMARSTON'S PLC\n \n('Marston's' or 'the Group')\n \nSTRONG LFL SALES GROWTH YEAR TO DATE +5.2%\nTRANSFORMATIONAL CMBC DISPOSAL\nMarston's, a leading UK operator of c.1,370 pubs, today announces a trading update for the 42 weeks to 20 July 2024.\nTrading update\nAll sale comparisons are compared to the same period in FY2023.\nYear-to-date, like-for-like sales increased by 5.2% and total retail sales in the Group's managed and franchised pubs increased by 6.2% as our portfolio of well-invested community pubs continues to demonstrate its appeal.\nLike-for-like sales increased by 2.4% in the 16-week period to 20 July 2024, compared to the same period last year. We have seen considerable uplift from Euro 2024, with like-for-like sales for the week of the semi-final and final matches rising by 8.0%. This has helped to lessen the impact of recent unseasonably wet weather and a particularly strong comparative period last year.\nWe continue to see positive momentum across both food and drink occasions. Food sales have been particularly encouraging, with changes to our menu proving increasingly popular with guests. \nCarlsberg Marston's Limited ('CMBC')\nAs announced on 8 July 2024, the Group agreed to the sale of its 40% interest in CMBC to a subsidiary of Carlsberg for £206 million in cash. This strategic and transformational transaction will enable Marston's to become a focused, pure-play pub company and supports a significant reduction in the Group's net debt to <£1 billion in a significantly accelerated timeframe. The transaction is expected to be accretive on adjusted earnings per share.\nOn 11 July 2024, the Financial Conduct Authority confirmed the changes to the UK Listing Rules, one of which means that shareholder approval is no longer required for Class 1 transactions. These changes are due to come into effect on 29 July 2024. The Board can therefore confirm that its intention is to waive the requirement for the transaction to gain shareholder consent when the new UK Listing Rules come into force. Completion of the transaction is targeted for 31 July 2024.\nFurther announcements will be made as and when appropriate.\nOutlook\nDebt reduction remains a central focus for the management team and we intend to put financing in place that is better suited to the new ...