Marston's PLC saw its full-year losses widen as COVID-19 disrupted operations, but the independent brewing and pub retailing business said it believed the worst of the pandemic is now over.
It said trading since the year end on 2 October was encouraging, with total like-for-like sales in its managed and franchised pubs up 1.3% from pre-COVID 2019 levels despite a reduction in VAT relief. It urged the government to continue to assist the hospitality sector’s recovery by maintaining VAT at 12.5%.
The group also said Christmas bookings were encouraging and in line with 2019.
Marston's positive trading comments come at a time when many in the hospitality sector and in the travel and airline industry are concerned about the potential impact of the Omicron variant of coronavirus and the threat of further lockdowns.
The company said it did not plan to pay a full-year dividend.
Underlying losses widened to £100mln from £22mln. During the year, it sold Marston's Beer Company to Carlsberg Marston's Brewing Co for £291mln and took a non-cash impairment charge of £84mln for property.
Like-for-like sales since lockdown restrictions were lifted in July were up 102% on 2019 as pubs were allowed to reopen and accommodation sales were strong as people chose to holiday in the UK.
"It is extremely encouraging that trading momentum has built well since reopening and trading is now exceeding FY2019 levels,” said chief executive Andrew Andrea.
“We were delighted to fully reopen our estate in July, once restrictions were lifted, and welcome our guests and team members back into our pubs. Whilst there are still some challenges to navigate over the months ahead, we believe the worst of the pandemic is now behind us.”