Marston’s is planning to dispose of £50m non-core and unlicensed properties in its 2024 financial year, with debt reduction remaining a “key focus” for the group.
The pub group sold £9.6m of properties in the first half of its financial year, ending 30 March. Marston’s said the sales have overall achieved net book value.
Since the end of H1, around £16m of additional disposals have either sold or exchanged. During the same 26-week period in the previous year, it made £23.4m of disposals.
The group’s land and property portfolio had a related asset value of just over £2bn. The figure is slightly down on £2.1bn in April last year.
Its pub estate is predominantly freehold, with a “community focus” away from city centres.
More than half (55%) of its pubs are operated under partnership agreements. The remainder is either managed (30%) or tenanted and leased (15%).
Net assets tallied £601.5m, down on £620.1m during H1 2023. Net debt, excluding IFRS 16 lease liabilities, reduced by £24.5m to £1.1bn during H1 this year.
Total revenue for the period was up 5.2% to £428m.
Its pretax loss widened to £43.5m, from a loss of £38.1m in H1 2023, owing to an increase in liabilities from interest rate swaps and a one-off charge relating to an ale brand impairment. However, underlying pub operating profit grew by 22% to £52.7m.
Chief executive Justin Platt said it was a “positive H1”, pointing to 7.3% like-for-like sales growth during the period.
He added: “The outlook for H2 is encouraging. With a number of “must not miss” major sporting events, our massively upgraded pub gardens and much-loved food menus, we expect our pubs to be very popular this summer.”
Photo © Travel Images/UIG/Shutterstock
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