Marston’s warns of uncertain outlook ahead of pub reopenings
Marston’s warned its financial outlook in the short term is uncertain as it looks to reopening pubs and restaurants from next week.
The figures
The pub operator said the coronavirus outbreak had a material impact on revenues estimated at around £40m.
It took a hit to profit as it reported a £9.4m profit before tax compared to £34.2m last year, as the government shut pubs in order to limit the spread of coronavirus.
Despite an impact on earnings, Marston’s net cash flow improved by £55m which it said reflected progress on its debt reduction plans.
Why it’s interesting
Marston’s said it reduced its monthly cash burn to £10m and its partnership with Carlsberg UK helps it with its post-pandemic recovery.
The firm said it was a “transformational” deal which positions it well for the future.
Last month Marston’s announced a plan to merge its brewing business with Carlsberg’s UK division in a £780m deal.
Despite this the pub chain warned of short term uncertainty as the sector grapples with social distancing guidelines and a new way of operating. Marston’s said the challenges should not be underestimated with a lot resting on consumer confidence.
What Marston’s said
Chief executive Ralph Findlay said:
“Our immediate priority is to prepare our pubs to reopen on 4 July. Whilst there is short term uncertainty as the sector emerges from lockdown, we are focussed on offering a great guest experience, synonymous with Marston’s hospitality, to welcome our customers back into our pubs within a safe trading environment.
The challenges facing the sector should not be underestimated and much rests on consumer confidence which may take time to rebuild.”