Pub group Marston’s returns to profit after cost cuts and drawing in punters

Pub group Marston’s has returned to a profit in recent months after cutting costs and attracting customers during occasions like Easter and Mother’s Day.

The company, which runs 1,333 pubs across the UK, said the first half of its financial year had been a period of “significant momentum”.

It reported a pre-tax profit of £19 million for the six months to March 29, swinging from a loss of £200,000 the previous year.

Sales were flat on the previous year at £427 million for the period, despite the group selling a swathe of pubs last year and its remaining brewing business to Carlsberg.

Marston’s revealed that, compared like for like with last year, sales have surged by 10.5% in the five weeks since the end of March, amid a spell of warm weather across the country.

The company has an estate of pubs scattered across the country, including franchises and leased pubs, and hires about 10,000 staff.

It revealed it had been making changes to reduce business costs in recent months, including rolling out a staff planning tool based on live levels of demand in pubs and simplifying its food and drink menu.

Installing smart meters across pubs and fixing electricity contracts until the end of the financial year was also reducing energy costs.

The cost savings will offset the impact of the national minimum wage rising and national insurance contributions increasing, Marston’s said.

Marston’s was among pub and hospitality groups to sign a letter to Chancellor Rachel Reeves last year warning that business tax hikes could force them to slash jobs or raise prices for customers.

Meanwhile, occasions including Christmas, Mother’s Day and Easter, alongside events organised by the group, were bringing in more customers.

Marston’s has cashed in on initiatives such as a limited edition menu to mark the release of the Paddington in Peru film and a darts tournament while it is preparing to hold a pub quiz series with TV host Paddy McGuinness.

Justin Platt, Marston’s chief executive, said the first half had been a “period of significant momentum” with investment in new technology helping drive profit growth.

“With strong recent trading across our nationwide estate of great local pubs, we are excited for the summer months ahead,” he said.