How Marston's has turned around its fortunes as people rush back to its pubs

Interim results for the half-year period up to March 29 showed total revenue for the Wolverhampton-based company remained stable at £427.4 million, down slightly from the previous period (£428.1m).

However like-for-like sales rose by 2.9 per cent in the 31 weeks to 3 May, with growth of 10.5 per cent in the five weeks since the period ended. 

Underlying profit before tax rose to £19 million, up from a £0.2 million loss in the first half of 2024.

Underlying pub operating profit increased by 20.1 per cent to £63.3 million (H1 2024: £52.7 million), underpinned by what the company describes as "strong operational delivery" and strategic cost-saving measures.

A total of 18 of 30 planned new pub openings have now been completed, with the company saying its investment programme is "on time and on budget".

“The first half has been a period of significant momentum for Marston’s, with the execution of a market leading pub operating model, investment in our differentiated pub formats and progress in our digital transformation driving strong margin and profit growth," said Justin Platt, CEO of Marston’s PLC.

“Through our impactful calendar of demand-driving events and the dedication of our passionate, local teams, we continue to deliver great guest experiences every day, powering our industry-leading guest reputation scores. With strong recent trading across our nationwide estate of great local pubs, we are excited for the summer months ahead.

“We remain confident in achieving our financial goals for the full year and focused on executing our strategy as a pure play hospitality company to deliver sustainable growth and increasing returns for our shareholders.”

The company has an estate of pubs scattered across the country, including franchises and leased pubs, and hires about 10,000 staff.

It revealed it had been making changes to reduce business costs in recent months, including rolling out a staff planning tool based on live levels of demand in pubs and simplifying its food and drink menu.

Last year, Marston's completed a deal to sell its 40 per cent interest in Carlsberg Marston's Brewing Company, also headquartered in the city, for £206 million.

The company said the sale would enable it to focus entirely on running its 1,300 pubs across the UK, with a further £30 million of capital expenditure planned for future projects over the remainder of the financial year.

Russ Mould, investment director at investment platform AJ Bell, said: “The recent sunshine looks like it is allowing pubs group Marston’s to build on a strong showing in the first half of its financial year and it is doing better than the wider market too.

“Like lots of hospitality businesses, Marston’s came out of the pandemic with substantial borrowings as it was forced to withstand long periods when it was unable to trade.

“A key priority for the company is bringing debt levels down and the latest results reveal tangible progress. This is only possible thanks to improved trading and the company managing to keep a tight rein on costs.

“The company may find it harder to boost profitability going forwards given the increased costs associated with changes in last year’s Budget.

“As well as reducing leverage the company is investing in its estate which is crucial if its pubs are to remain go-to destinations for punters.”