16 October 2024
MARSTON'S PLC
('Marston's' or 'the Group')
CAPITAL MARKETS DAY
NEW CHAPTER AS A LEADING PURE PLAY HOSPITALITY BUSINESS
Marston's, a leading
Management will outline the Group's growth and financial strategy, including providing new near and medium-term financial targets. A recording will be available on the Marston's plc website at https://www.marstonspubs.co.uk/investors/results-presentations/ following the event.
Strategic update and new near & medium-term financial targets
Marston's Management team will present the Group's strategy as a leading pure play hospitality business. The updated strategy will drive a high-margin, highly cash-generative local pub company based on differentiated formats, and a brand portfolio that is naturally balanced to appeal across a range of consumer segments.
The delivery of this strategy will centre on five key value drivers;
· Executing a market leading operating model
· Targeted investment to create five differentiated pub formats
· Digital transformation
· Expansion of managed & partnership models
· Leveraging Marston's synergies in targeted M&A
Our strategy will ensure we drive guest demand and deliver amazing pub experiences whilst maintaining our focus on best-in-class operations and cost efficiencies to expand the Group's profitability and cash generation profile.
As a result, in the near to medium term we expect to deliver:
· Revenue growth ahead of the market1
· EBITDA margin expansion of 200-300 basis points
· Over
· >30% ROIC on investment focused capex
The delivery of the strategy and financial targets are underpinned by a strong balance sheet, with no material refinancing requirement for at least 10 years, and a disciplined capital allocation framework focused on enhancing shareholder value.
Justin Platt, Chief Executive of Marston's, said:
"Marston's is embarking on a new and exciting chapter as a pure play hospitality business. At today's CMD we are outlining a differentiated strategy for growth that is anchored in the needs of our guests and focused on driving sustained value for our shareholders.
With a relentless focus on delivering amazing pub experiences, Marston's has a real opportunity to drive significant, incremental value in the coming years. We are very excited by the opportunities that lie ahead."
[1] Market is forecast to grow at 3% CAGR, according to Mintel.
2 Free cash flow is cash flow after capex before debt repayments and excluding disposals.
Enquiries:
Marston's PLC
Justin Platt, CEO Tel: 01902 329516
Hayleigh Lupino, CFO
Matthew Lee, Investor Relations matthew.lee@marstons.co.uk
Rebecca Jamieson, Investor Relations rebecca.jamieson@marstons.co.uk
Sodali & Co (Media)
Ben Foster Tel: 020 7250 1446
Russ Lynch
Oliver Banks marstons@sodali.com
Notes to editors
Marston's PLC, whose shares are listed on the London Stock Exchange under the ticker MARS, is a leading pub operator with an estate of 1,339 pubs nationally, comprising managed, partnership ('franchised') and tenanted and leased pubs. Marston's employs c.10,000 people. More information is available at: https://www.marstonspubs.co.uk/.
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