Express & Star

Marston's to open fewer pubs to open despite sales growth

Marston’s is to make cost savings of £5 million in its current financial year despite a growth in sales and profits for 2016-2017.

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Marston's PLC CEO Ralph Findlay, at Marstons House, Brewery Rd, Wolverhampton

The Wolverhampton-headquartered pubs and breweries business is also scaling back its new pub and restaurant building.

Chief executive Ralph Findlay said that the group had delivered like-for-like growth in brewing and wet-led pubs for the year to the end of September and was targetting further growth in this year.

Growth had come from increasing its pub estate and the acquisition of the Charles Wells brewing and beer business in May for £55m.

In the wake of “subdued market conditions” and a poorer summer performance, action had been taken by management to control and reduce costs.

Mr Findlay said that £5m savings had been identified for 2017-2018.

“At the same time there is a degree of caution in the market reflected in the modest reduction in our opening programme for 2018,” he added.

It opened 19 pubs and bars and eight lodges, including the Spread Eagle, Gailey, in 2016-2017. This will reduce to 15 pubs and bars and six lodges for 2017-2018

Marston’s enjoyed a “transformational” year for its brewing business as beer volumes soared amid acquisitions and licensing agreements.

It has sealed long-term distribution agreements with Punch B and Hawthorn Leisure help increase own-brewed beer volumes by six per cent in the year.

In its destination and premium pubs like-for-like sales were 0.9 per cent higher, despite more subdued trading over the summer in line with the wider market.

Its taverns arm was 1.6 per cent up on a like-for-like basis, with local beers and craft drinks proving particularly popular among punters.

Like-for-like profits in the estate of leased pubs are estimated to be up one per cent, which the brewer put down to a high quality of estate pubs and licensee stability.

“Our priority is to focus on quality, service and standards. We are well placed to continue to implement our growth strategy through investment in higher quality pubs and bars and through our unrivalled beer brand range supported by high customer service standards,” said Mr Findlay.

Mr Findlay said Marston’s still had a strong pipeline of new sites for 2019 and beyond across the UK. The addition of Charles Wells, bought for was the sixth brewery for the group and Mr Findlay said it would continue to look for opportunities in the market.

Marston’s is also continuing to refurbish existing pubs with work on the Claregate and Clarendon Arms, Wolverhampton, and the Hollybush in Penn Road, carried out in the last year.

Marston’s now has an estate of around 1,550 pubs nationally and its other breweries are Banks’s, Marston’s, Jennings, Wychwood and Ringwood. It employs around 15,000 people.