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The Markets
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The Markets
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Leisure, gaming and gambling

Marston's performs ahead of market despite wet weather

Marston’s PLC (LSE:MARS) reported stronger sales than the wider pubs sector in the past quarter and also disclosed a much-reduced debt pile.

Marston's is now a pure pub company after selling off a final stake in its brewery business via the £206 million sale of its final 40% stake in the CMBC joint venture to co-owner Carlsberg in July.

The Wolverhampton-based group posted a year-end trading update showing 5.8% sales growth for the 53 weeks to 28 September.

Like-for-like sales growth was 4.8%, which it said was an outperformance of the broader pub market, thanks to "good momentum" for both food and drink.

Directors are confident of meeting full-year expectations for underlying PBT of around £40.5 million.

LFL sales were up 3.8% in the last 13 weeks of its financial year, which was a fairly strong result in the face of very wet weather in latter weeks.

Food sales "performed exceptionally well", which Marston's said was a good indication for potential business over the coming festive season.

Following the CMBC sale, full-year net debt excluding property lease liabilities should finish at roughly £885 million, down around £300 million on a year ago.

Marston's is "in a strong position to drive value for our shareholders as a focused pub business", said chief executive Justin Platt, ahead of an investor day scheduled for next week.

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