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Marston’s is the toast of the town as full-year revenues smash through £1bn mark

Published: 09:10 30 Nov 2017 GMT

Marston's ales
The results were boosted by the impact of the £55mln acquisition of the Charles Wells Beer Business which brought well-known ale brands such as Bombardier

Marston’s plc (LON:MARS) full-year results were cheered by the markets on Thursday after the pub operator and brewery saw revenues smash through the £1bn barrier.

The Wolverhampton-based business saw revenues jump 8% in the 12 months ended 30 September 2017 to £1.01bn from £37.3mln last year.

Revenues and profits both up

On the back of the improved top line performance, pre-tax profits soared by 24% to £100.3mln (2016: £80.8mln) with profit growth in all trading segments.

The results were boosted by the impact of the £55mln acquisition of the Charles Wells Beer Business which brought well-known ale brands Bombardier, Young’s and McEwan’s into Marston’s portfolio.

READ: Marston's says full year sales, profits ahead of last year, although summer trading was subdued

The company also snapped up some pubs from Whitbread plc (LON:WTB) during the period for £13mln.

Given the solid 12 months, Marston’s edged its dividend up 0.1p to 4.8p per share. Over the course of the year the firm will have paid out 7.5p – a 2.7% year-on-year rise.

On track for further growth in 2018

"We have achieved strong revenue growth and higher earnings, despite increasing employment and property costs,” said chief executive Ralph Findlay.

“Our business has been transformed in recent years with a significant improvement in the quality of both our pub and beer businesses.

“While political and economic uncertainty is likely to continue, we remain confident that our proposition founded on providing great customer experiences, the very best service and value for money, leaves Marston's positioned to deliver further growth in the year ahead.”

Solid start to new year

The FTSE 250 group said like-for-like sales and beer volumes had both grown in the opening seven weeks of the new financial year, although it wasn’t too heavy on the detail.

It added that there had been no “material changes” to market conditions or its performance so far that would impact its full-year expectations.

READ: Marston's adds Bombardier and Young's brewer to its portfolio

That helped to ease concerns that Marston’s might get off to a poor start after it bemoaned “subdued” trading towards the end of the last financial year.

The company also reiterated its cost savings guidance of £5mln a year as it looks to offset increases to the National Living Wage and business rates.

Shares frothed 9.8% higher on Thursday morning to 115.1p.

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