Marston’s well placed to benefit from ongoing recovery and remains a ‘buy’ for investors

As Marston’s reports full year results Helal Miah, investment research analyst at The Share Centre, explains what it means for investors.

“This morning, Marston’s revealed that its full year figures were more or less in line with expectations. Underlying group revenues were up 1% to £787.6m and underlying profit before tax was down 3.6% at £83m. Over the last two years the group has been transforming its pubs assets by developing franchise style pubs which focus on food and drinks, while disposing of older drinks led pubs. Franchise style pubs now generate roughly 75% of the company’s profits and give it better control over the retail offer. This was an excellent year for the brewing division as consumers tastes have trended towards regional and premium beers.

“Investors may also be interested in management’s comments that ‘signs of modest economic growth, the emergence of a real wage growth and resilience outside of London should benefit the group’. We recommend Marston’s as a ‘buy’ for medium risk income seeking investors. The continued transformation of the group should leave it better placed and the ongoing recovery, especially real wage growth, should be good news.”