Marston’s swing into loss in H1

Marston’s swing into loss in H1

marston's

Pub owner and brewer Marston’s (LON:MARS) saw shares sink nearly 5 percent on Wednesday morning, after swinging into a loss for the first half.

Pre-tax losses amounted to £13.4 million, compared to a profit of £36.7 million the previous year. Underlying pre-tax profit rose 8 percent to £36.3 million, while revenue was up 20 percent to £528.1 million.

Accounting adjustments relating to the estate valuation and changes in the fair value of interest rate swaps were responsible for the loss.

The group kept its dividend steady, maintained at 2.7p per share.

Marston’s remained confident about its prospects heading into 2018, hoping to deliver growth in both revenue and underlying pre-tax profit in 2018.

“We are pleased to report another period of good growth in revenue and underlying profit before tax,” chief executive Ralph Findlay said.

“Strong trading in brewing and taverns and leased pubs offsets the adverse impact of poor weather on ‘drive-to’ pubs in our destination estate, further validating the resilience of our model.”

Shares in Marston’s (LON:MARS) are currently trading down 4.38 percent at 107.10 (0924GMT).