26th November 2015
Marston’s enjoyed a 4% share price lift in early trading on Thursday as the pub group reported its full-year results.
The FTSE 250 listed firm said for the year ended 3 October 2015, underlying profit before tax rose by 10% to £91.5m while revenues jumped by 7% to £845.5m.
Group CEO Ralph Findlay said: “We approach 2016 with our business successfully positioned at the forefront of industry trends with high quality, well-invested pub assets which are fit for the future.
“Looking forward, we remain on track to open at least 20 new-build pubs this year and have in place a carefully selected site pipeline in key regional locations for 2016 and beyond. Whilst new-build, food-led pubs remain our core growth driver, we have evolved our strategy to capitalise upon other opportunities for expansion where we see attractive returns potential”
Helal Miah, investment research analyst at The Share Centre is tipping Marston’s shares as a ‘buy’ for medium risk investors seeking income
He said: “Investors should be aware that there was profit growth in all segments of the business despite asset disposals. New pubs are being opened with the average profit per pub rising by 15% to £100,000 per year.
“The company and shares have performed well over the years and we continue to believe there is more to come. They are making good progress towards transforming their pub portfolio to a franchise format and further pub builds are expected, while investment into premium pubs and accommodation should further help the return on capital employed.
“Investors will be happy that the final dividend of 4.5p resulted in a 4.5% dividend increase for the year.”