Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Marston’s sees market share gains, positive Christmas season ahead
Pub and restaurant operator Marston’s LON:MARS has this morning published full year results showing a 4.8% increase in like for like revenues against a 64% uptick in operating profits. Operating margins have improved by 210 bps and management note that the company is outpacing the broader market.
Net debt has been reduced materially from the sale of its brewing joint venture stake and the note highlights that a strong start has been seen in FY25, whilst Christmas bookings are also outpacing last year’s performance. Whilst acknowledging the impact of the government’s changes to wages and NI contributions, these are seen as being manageable.
#2. New record sales On The Beach
Travel agent On The Beach LON:OTB has its full year numbers out today with total transaction value up a further 15% to a new record of £1.2bn, whilst revenues added 14%. Margins have also improved, up 170 basis points and the dividend – which resumed at the interim stage – has been maintained. The business will also return £25m to shareholders via a buy back. Forward bookings are at record levels and management are confident that summer ’25 will be well ahead of this year’s performance.
#3. European performance drags on FY numbers at SSP
The operator of food & beverage outlets in transport hubs has published full year numbers today. SSP LON:SSPG revenues are 14% higher, operating profits are up 26% and the operating margin added 60 bps. The company works globally and saw a good performance in most territories although notes that continental Europe was sluggish owing to a number of factors, impacting headline numbers as a result. EPS has however landed as guided in the pre-close update and management note a good start to FY25 with trade in the first 8 weeks up 13% YoY.
