Business
Capital Markets Day
Capital Markets Day.
About this update from Marston's Plc
16 October 2024 MARSTON'S PLC ('Marston's' or 'the Group') CAPITAL MARKETS DAY NEW CHAPTER AS A LEADING PURE PLAY HOSPITALITY BUSINESS Marston's, a leading UK operator of 1,339 pubs, is today hosting its 2024 Capital Markets Day. Management will outline the Group's growth and financial strategy, including providing new near and medium-term financial targets. A recording will be available on the Marston's plc website at https://www.marstonspubs.co.uk/investors/results-presentations/ following the event. Strategic update and new near & medium-term financial targets Marston's Management team will present the Group's strategy as a leading pure play hospitality business. The updated strategy will drive a high-margin, highly cash-generative local pub company based on differentiated formats, and a brand portfolio that is naturally balanced to appeal across a range of consumer segments. The delivery of this strategy will centre on five key value drivers; · Executing a market leading operating model · Targeted investment to create five differentiated pub formats · Digital transformation · Expansion of managed & partnership models · Leveraging Marston's synergies in targeted M&A Our strategy will ensure we drive guest demand and deliver amazing pub experiences whilst maintaining our focus on best-in-class operations and cost efficiencies to expand the Group's profitability and cash generation profile. As a result, in the near to medium term we expect to deliver: · Revenue growth ahead of the market 1 · EBITDA margin expansion of 200-300 basis points · Over £50 million recurring free cash flow 2 · >30% ROIC on investment focused capex The delivery of the strategy and financial targets are underpinned by a strong balance sheet, with no material refinancing requirement for at least 10 years, and a disciplined capital allocation framework focused on enhancing shareholder value. Justin Platt, Chief Executive of Marston's, said: "Marston's is embarking on a new and exciting chapter as a pure play hospitality business. At today's CMD we are outlining a differentiated strategy for growth that is anchored in the needs of our guests and focused on driving sustained value for our shareholders. With a relentless focus on delivering amazing pub experiences, Marston's has a real opportunity to drive significant, incremental value in the coming years. We are very excited by the opportunities that lie ahead." [1] Market is forecast to grow at 3% CAGR, according to Mintel. 2 Free cash flow is cash flow after capex before debt repayments and excluding disposals . Enquiries: Marston's PLC Justin Platt, CEO Tel: 01902 329516 Hayleigh Lupino, CFO Matthew Lee, Investor Relations [email protected] Rebecca Jamieson, Investor Relations [email protected] Sodali & Co (Media) Ben Foster Tel: 020 7250 1446 Russ Lynch Oliver Banks [email protected] Notes to editors Marston's PLC, whose shares are listed on the London Stock Exchange under the ticker MARS, is a leading pub operator with an estate of 1,339 pubs nationally, comprising managed, partnership ('franchised') and tenanted and leased pubs. Marston's employs c.10,000 people. More information is available at: https://www.marstonspubs.co.uk/ .