Marston's swings to profit; on track to meet market expectations

Marston’s PLC on Tuesday said it remained ‘cognisant of the importance of dividends to shareholders’ despite holding back on an interim payout, as demand-driving events such as a partnership with film ’Paddington in Peru’ boosted half-year sales.

The Wolverhampton, England-based based operator of 1,333 pubs across the UK swung to a pretax profit of £19.5 million in the six months that ended March 29 from a loss of £26.9 million a year prior.

Revenue slipped 0.2% to £427.4 million from £428.1 million, but pub operating profit climbed 18% to £61.3 million from £51.8 million.

Earnings before interest, tax, depreciation and amortisation was £85.9 million, up 14% from £75.5 million a year before, and underlying pretax profit was £19.0 million, swung from a £200,000 loss a year before.

Marston’s said demand-driving events enhanced customer engagements, with highlights including a partnership with Paddington in Peru and the Luke Humphries Cool Hand Cup darts tournament.

The company confirmed it will pay no interim dividend, but noted it remained ‘cognisant of the importance of dividends to shareholders.’

Looking ahead, Marston’s said it is on track to deliver its targets, with performance for financial 2025 expected to be in line with current market expectations. It said like-for-like sales were up 11% on year in the first five weeks of the second half.

The pub operator said it is confident in its goal of achieving recurring free cash flow of £50 million per annum. In the first half, this was £5.9 million, down from £7.1 million a year before.

Marston’s shares were up 4.6% to 43.13 pence each on Tuesday morning in London.

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