Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Swifty Banner Morning Briefing Strap Line
Thu 28th Nov 2013 - Breaking News - Marston’s sells 202 pubs for £90m to REIT
Marston’s sells 202 pubs for £90m to REIT: Midlands brewers and retailer Marston’s has sold 202 pubs for £90m, at a sale price of 7.6x EBITDA, to NewRiver Retail Limited, a leading specialist REIT focused on the UK food and value retail sector. This disposal is consistent with Marston’s strategy to target growth through investment in higher turnover pub restaurants, improve the quality of its estate and reduce its exposure to smaller wet-led pubs. The disposal comprises 158 community pubs from Marston’s Taverns estate and 44 Leased pubs. Under the terms of the transaction Marston’s will manage the pubs for five years in return for a management fee. For the first four years Marston’s has provided a minimum income guarantee. Based on EBITDA of £11.8m (net of the management fee) and operating profit of £10.4m for the year to 5 October 2013 the transaction represents an exit multiple of around 7.6x EBITDA. The pubs have a book value of £119.5m of which £37.4m is represented by previous revaluation surpluses. Chief executive Ralph Findlay said: “This disposal will enable us to reduce the cost of servicing our securitised debt, is consistent with our strategy and improves the quality of our estate. It will also assist with financing the accelerating rollout of our new-build pub-restaurants which are achieving good returns.” The company has reported group revenue up 9% to £782.9 million (2012: £719.7 million) in the year ended 5 October. Underlying operating profit rose 7% to £168.3 million (2012: £157.9 million) and underlying profit before tax was up 1% to £88.4 million, despite higher interest costs. The company has extended its bank facility to November 2018, extending the maturity of group debt. The company reported destination and premium pubs saw “strong sales and profit growth” driven by new-build investment, including 22 openings in the year, performing ahead of target. Its taverns division saw Second Half profit growth in managed pubs and 600 pubs converted to franchise. Revenue and profit up was up in its brewing division with increased market share. The company will accelerate new-builds to 25-30 sites per annum. 130 pubs and other assets were sold or exchanged during the year for circa £50 million. The company will target £60-70 million disposals per annum in 2014 and 2015 from Taverns estate. In the seven weeks to 23 November, Destination and Premium saw like-for-like sales up 3.1%, with like-for-like food sales up 4.6% and like-for-like wet sales up 1.0%. In Taverns managed and franchised like-for-like sales were up 2.1% and tenanted profits in line with expectations. The Leased division saw like-for-like profits in line with last year and Brewing was in line with expectations. Chief executive Ralph Findlay said: “In 2013 we achieved good growth in turnover and operating profit despite significant challenges. This reflects our unstinting focus on what our customers want: excellent service and value for money in high quality pubs and bars. In 2013 we served 30 million meals, with food now the principal reason for around 80% of customer visits in our Destination pubs. Looking forward we will accelerate our high-return new-build programme whilst increasing the level of disposals from our lower turnover wet-led pubs. We have made an encouraging start to the new financial year and remain confident that our proven strategy is aligned to the underlying trends in the sector.”
Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
Weston's Banner
 
Ei Group Banner
 
OrderPay Banner
 
TipJar Banner
 
Wi5 Banner
 
Weston's Banner
 
Menu Connect Banner
 
Trail Banner
 
Odamo Banner
 
Arla Foods Banner
 
Nestle Waters Banner
 
Yumpingo Banner
 
Swifty Banner
 
Camile Banner
 
Eagle Eye Banner
 
Carlsberg Banner
 
Ten Kites Banner
 
Shield Safety Banner
 
Biff's Banner
 
Zonal Banner
 
Orderbee Banner
 
McCain Banner
 
Matthew Clark Banner
 
Deliverect Banner
 
A2Z Masks Banner
 
Sintuitive Banner
 
Yoello Banner
 
Boxpark Banner
 
Prestige Purchasing Banner
 
Access Banner
 
IOL Banner
 
COREcruitment Banner
 
Startle Banner
 
Pago Banner
 
Punch Taverns Link Punch Taverns Link
Wi5 Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website