Shares in pub group Martson’s (MARS) fell over 10% after the firm posted a disappointing Christmas trading update. The group operates over 1,300 pubs with both managed, partnership, tenanted and leased pubs in its estate.
| Share price: 61.5p (-10.8%) | PE: 7.6x |
| Market cap: £390m | Yield: n/a |
ON TRACK TO DELIVER
For the 17 weeks to 24 January, Martson’s registered a 4% increase in like-for-like sales. Across five key festive dates, when trading hit a peak, like-for-like growth increased to 5.6%.
While this may have outpaced the market, including food, drink, accommodation and gaming machines, the company lagged its peers. This makes Martson’s the second pub group to undershoot expectations, after JD Wetherspoon (JDW).
The firm said it was continuing with its roll-out, with 23 new venues launched in the quarter to December 2025. In total, it expects to roll out more than 50 new sites by the end of September this year.
Marston’s said its roster of special events, designed to drive demand, was well on track. Also, the 2026 FIFA World Cup should draw in the punters over the summer, adding confidence.
For FY26, the company said it was on track to deliver on profits and with the targets it set out in October 2024. CEO Justin Platt said he had a ‘clear strategy’ and was ‘excited for the opportunities ahead’.
We’re not too put out by today’s trading update or the somewhat extreme share price reaction. In fairness, the stock has had a strong run since last September, almost doubling from its low.
The CEO’s pledge to stick not just to this year’s profit target but the targets laid out at the 2024 CMD is significant. If return on investment and margins can increase, and with that free cash flow, the de-gearing can continue.
Read the press release here: https://www.marstonspubs.co.uk/investors/
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