Marston's PLC

FY25 revenue was GBP 898 million, broadly flat year-on-year, with like-for-like sales up 1.6% and market growth cited at 0.7%. EBITDA was GBP 205 million, up 6.5%-7%, and EBITDA margin expanded 140 basis points to 22.8%. Underlying profit before tax was GBP 72 million, up 71%, operating profit was GBP 159.9 million, up 8.6%, and recurring free cash flow was GBP 53.2 million, up 22% and ahead of the GBP 50 million target. Net debt excluding lease liabilities fell to GBP 837.5 million and leverage improved to 4.6x from 5.2x. For FY26, management expects like-for-like sales to be in line with last year, Christmas bookings up 11%, at least 50 further refurbishments, CapEx at 7% to 8% of revenue, recurring free cash flow of about GBP 50 million again, and leverage moving toward below 4x pre-IFRS 16.

Justin Platt said the strategy outlined at the Capital Markets Day is working and emphasized Marston’s aim to be a high-margin, highly cash-generative local pub company. He highlighted strong peak trading, successful event-led demand, improved guest satisfaction to 816, and meaningful progress in new formats, digital ordering, and labor productivity. His tone was upbeat and confident, especially around the rollout potential of the new formats and the company’s ability to keep growing while improving service.

Stephen Hopson focused on the operating leverage in the numbers: EBITDA up to GBP 205 million, margin up to 22.8%, PBT up to GBP 72 million, and recurring free cash flow at GBP 53.2 million. He said labor productivity was the biggest margin driver and fully offset National Living Wage and National Insurance increases, while food and drink margin, energy savings and other efficiencies also helped. On the balance sheet, he noted net debt excluding leases fell by GBP 46.2 million to GBP 837.5 million, cash ended at GBP 35.9 million, the bank facility runs to July 2027, and the company will be in the very large company corporation tax regime in FY26, with cash tax payments expected to rise to about GBP 10 million from GBP 5.3 million.

Analysts asked why Marston’s is prioritizing Two Door and Grandstand for the next wave of refurbishments; management said it comes down to certainty of return, because those formats have more operating data, and Grandstand is especially attractive ahead of the World Cup. Questions on margins drew guidance that FY26 EBITDA margins should rise, though not by as much as the 140 bps achieved in FY25, with continued labor optimization and better visibility on food and drink input costs. Management also said FY26 cash tax will roughly double to about GBP 10 million, while 2027 will still be below normalized levels before moving to normalized payments in 2028. On trading, management said peak periods were up almost 6%, Christmas bookings were up 11%, and they are still working to convert bookings into actual spend and walk-in traffic.