Marston's aims to raise £50m from further pub sales

Marston's has said it hopes to raise £50m by selling off more pubs over the next year.

The group operates 1,415 managed, franchised, and leased pubs across the UK and employs around 11,000 people.

It is aiming to reduce its debt by £60m - £70m in the next 12 months and said it expected to sell off around £50m worth of non-core properties.

During the past year, Marston's generated £55m via the disposal of other non-core pubs and reduced its head office headcount costs by around £5m.

Total retail sales across the group's managed and franchised pubs were 11.3% up in the 12 months to 30 September 2023, while overall like-for-like sales rose 10.1%.

Marston's said a trial of a new franchise-style model in 19 food-led pubs had been a success with sales growth "significantly exceeding" its wider food business.

It is on track to roll-out the model to 50 food-led pubs over the next year.

Marston's chief executive officer Andrew Andrea said: "Two years ago, we set out our vision and strategy with a clear objective to create a simplified, high quality predominately suburban pub business, with minimal exposure to city centres where demand is more volatile.

"The benefits of this strategy are now coming through."

Andrea said cost-cutting measures and a more positive economic outlook meant the group was well-placed to improve margins over the coming year.

Marston's sold 137 pubs to rival Admiral Taverns for £44.9m in 2019.