Pub group woes

Dec 5 2008 By Andrew Mernin

Pubs group Marston’s today reported a 13% slide in profits and slammed this year’s alcohol tax hikes as an ``unwelcome" threat to the UK pub industry.

The Pitcher & Piano and Two for One owner said it faced a difficult year ahead, with the Chancellor’s Pre-Budget Report alcohol tax grab posing ``significant challenges".

It posted underlying pre-tax profits of £85.1m in the year to October 4 - the group’s first full year with the smoking ban.

The firm, which has a 2,250-strong pub estate, said total annual turnover rose 2% to £666.1m, but sales suffered in its pubs.

Like-for-like sales in its 506 managed Marston’s Inns and Taverns fell 0.6%, while its 1,743 tenanted pubs saw turnover fall 7% and comparable profit per pub drop 1.7%.

Marston’s added that trading since the year-end had continued to be ``very challenging", with like-for-like sales across Marston’s Inns and Taverns down 2.9% in the eight weeks to November 29.

David Thompson, chairman of Marston’s said: ``In a deteriorating economic environment we have taken steps to reduce our cost base and debt, but we expect a difficult year ahead.