News & Updates
Interim Results – 13 May 2025
13th May 2025
STRONG PROFIT GROWTH, SIGNIFICANT STRATEGIC PROGRESS, CONFIDENT IN FULL-YEAR OUTLOOK
Marston’s, a leading local pub business with an estate of 1,333 pubs across the UK, today announces its Interim Results for the 26 weeks ended 29 March 2025. The period under review commenced on 29 September 2024.
| Underlying | Statutory / Total | |||||
|---|---|---|---|---|---|---|
| H1 2025 | H1 2024 | Change | H1 2025 | H1 2024 | Change | |
| Total revenue (£m) | 427.4 | 428.1 | (0.2)% | 427.4 | 428.1 | (0.2)% |
| EBITDA1 (£m) | 85.9 | 75.5 | 13.8% | - | - | - |
| Pub operating profit (£m) | 63.3 | 52.7 | 20.1% | 61.3 | 51.8 | 18.3% |
| Profit before tax1 (£m) | 19.0 | (0.2) | £19.2m | 19.5 | (26.9) | £46.4m |
| Earnings per share1 (pence) | 2.2 | 0.0 | 2.2p | 2.3 | (3.2) | 5.5p |
| NAV per share (£) | - | - | - | 1.07 | 0.95 | 12.6% |
| EBITDA margin1 (%) | 20.1 | 17.6 | 250bps | - | - | - |
| Underlying operating margin1 (%) | 14.8 | 12.3 | 250bps | - | - | - |
| Capex (£m) | - | - | - | 31.0 | 21.7 | 42.9% |
| Recurring free cash flow (£m) | - | - | - | 5.9 | 7.1 | (16.9)% |
| Net debt excluding IFRS 16 (£m) | - | - | - | 881.1 | 1,160.9 | (24.1)% |
1 - Results from continuing operations
Strong performance underpins confidence in full-year outlook
- Like-for-like (LFL) sales were up 2.9% in the 31 weeks to 3 May, with strong growth of 10.5% in the 5 weeks since the period end. In H1 2025, LFL sales grew by 1.3% reflecting timing of Easter & Mothers Day which fell in H1 in 2024 and in H2 2025
- Total revenue stable at £427.4 million (H1 2024: £428.1 million) despite c.£50 million of disposals in FY2024, demonstrating the strength of the core estate
- Underlying pub operating profit increased by 20.1% to £63.3 million (H1 2024: £52.7 million), underpinned by strong operational delivery and strategic cost-saving measures
- EBITDA margin1 expanded by approximately 250bps supported by data and technology-led improvements in labour deployment and procurement efficiency which form a core part of our refreshed strategy
- Underlying profit before tax1 of £19.0 million (H1 2024: £0.2 million loss), driven by robust revenue performance and operational discipline
Strategic investment and debt reduction on-track
- Recurring free cash flow of £5.9 million (H1 2024: £7.1 million), reflecting the timing of working capital in H1, which we expect to largely unwind by the year end, and increased investment capex aligned to our strategic growth priorities
- Capex of £31.0 million (H1 2024: £21.7 million)
- Net debt2 reduced to £881.1 million (H1 2024: £1,160.9 million), as CMBC sale supported a stronger balance sheet and increased financial flexibility; leverage ratio2 of 4.9x, down from 5.2x at FY2024
- In line with net debt reduction, net interest costs have reduced to £42.8 million (H1 2024: £48.3 million)
Significant strategic and operational progress
- Guest satisfaction remained high, with a Reputation score of 800 (H1 2024: 787), maintained during a period of significant transformation. Further improvement is targeted as initiatives continue to embed
- Demand-driving events delivered enhanced customer engagement, with H1 highlights including Paddington in Peru partnership and the Luke Humphries Cool Hand Cup darts tournament
- Pub format rollout progressing well, supporting broader appeal across guest segments. Of the 30 new openings planned for FY2025, 18 have already been delivered on time and on budget, with strong early trading and guest feedback
- Cost efficiency benefits accelerating, following full rollout of labour planning dashboards which deliver improved productivity through real-time, data-led scheduling, helping offset inflationary cost pressures
- Enhanced Order & Pay live across more than 750 pubs, supporting upselling, premiumisation and higher spend per guest. Full estate rollout expected by the end of the financial year
Outlook
- LFL sales in the 5 weeks since 29 March up 10.5%, demonstrating the Group’s strategic progress and the growing impact of revenue-driving initiatives
- Strong trading across key occasions – including Christmas, Mother’s Day, and Easter – alongside the continued rollout of strategic initiatives with a strong pipeline of demand driving events, such as Trivial Pursuit ‘Win a Wedge’, reinforces confidence in encouraging H2 outlook
- Capex expected to total c.£60 million for FY2025
- Confident in delivering recurring free cash flow of over £50 million a year in the near-to-medium term, supporting further investment and deleveraging
- On track to deliver targets outlined at the October 2024 Capital Markets Day, with FY2025 performance expected to be in line with current market expectations3
Justin Platt, CEO of Marston’s PLC, commented:
“The first half has been a period of significant momentum for Marston’s, with the execution of a market leading pub operating model, investment in our differentiated pub formats and progress in our digital transformation driving strong margin and profit growth.
“Through our impactful calendar of demand-driving events and the dedication of our passionate, local teams, we continue to deliver great guest experiences every day, powering our industry-leading guest reputation scores. With strong recent trading across our nationwide estate of great local pubs, we are excited for the summer months ahead.
“We remain confident in achieving our financial goals for the full year and focused on executing our strategy as a pure play hospitality company to deliver sustainable growth and increasing returns for our shareholders.”
A copy of the full announcement can be found here.
