4 November 2019
Marston's PLC ("Marston's" or "the Group") is pleased to announce it has reached agreement for the disposal of 137 pubs for £44.9 million to Admiral Taverns. This disposal is in line with Marston's plans to reduce its debt in part through the disposal of certain non-core assets. The assets being disposed of are smaller wet-led leased, tenanted and franchised pubs. The deal is expected to complete before the end of November.
The pubs being disposed of contributed EBITDA of £4.8 million and operating profit of £3.7 million for the year to 28 September 2019. The pubs have a book value of £62.6 million. The disposal will result in average profit per pub in the retained estate increasing by around 7% and return on capital improving by 0.2% post the transaction.
Commenting, Ralph Findlay, Chief Executive Officer, said:
"We are making good progress with our plans to reduce our net debt by £200 million by 2023 in part through the disposal of non-core assets. We are encouraged by the level of market interest that this portfolio of pubs has attracted. This further underpins our confidence in achieving the accelerated £70 million disposal proceeds target that we have set ourselves for the current year. We remain focused on our stated objective of reducing our net debt by £200 million by 2023 or earlier, and thereafter operating a high quality business generating consistent net cashflow, after dividends, of at least £50 million per annum."
Please find below the forthcoming reporting dates for the Group, which are also available on the investor calendar on our website -
2019 Preliminary results
27 November 2019
2020 Interim results
13 May 2020
2020 Preliminary results
25 November 2020
Marston's PLC Tel: 01902 329516
Instinctif Partners Tel: 020 7457 2020
Ralph Findlay, Chief Executive Officer
Andrew Andrea, Chief Financial Officer
NOTES TO EDITORS
· Marston's is a leading pub operator and independent brewer.
· It currently has an estate of 1,537 pubs situated nationally, comprising managed, franchised and leased pubs.
· Marston's is the UK's leading brewer of premium cask and packaged ales, with a portfolio including Marston's Pedigree, Wainwright, Hobgoblin, Young's, Bombardier, Lancaster Bomber, Banks's, Jennings, Wychwood, Ringwood, Brakspear, Courage, McEwan's and Mansfield beers. Marston's also has a range of licensed brands including Estrella Damm, Warsteiner, Erdinger, Kirin, Shipyard and Founders.
· Marston's employs around 14,000 people.
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