Pub chain Marston’s PLC (LSE:MARS) was full of ambitious rhetoric in an operational update ahead of today’s capital markets day (CMD).
After selling off its 40% share in its brewing joint venture with Carlsberg back to the Danish beer giant for £206 million in July, Marston’s is looking to the future as a pure-play hospitality business.
"Marston's is embarking on a new and exciting chapter as a pure-play hospitality business,” said Marston’s chief executive Justin Platt.
He added: “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."
Marston's believes its revenue growth in the near to medium term will be ahead of the market’s expectations of a 3% compound annual growth rate.
The group also expects EBITDA margins to improve by two to three percentage points.
Brokers were largely receptive to Marston’s CMD announcement. Both Shore Capital Markets and Panmure Liberum reiterated their buy rating on the stock, with the latter stating that Marston’s “continued robust trading, much improved free cash generation and ongoing deleveraging” are not reflected in the group’s 42.75p share price.