Pub operator and brewer Marston’s recorded pre-tax losses of £105.5million in the 26 weeks to the start of April, as it was hit hard by the Covid-19 lockdown.
But, the company, which owns the Harbour Springs hotel in Peterhead and the Three Witches in Inverness, said it was hopeful of a strong summer as restrictions ease and has seen early signs that the future for the business is bright.
Since reopening to customers for outdoor drinking last month and the return to indoor drinking in most areas this week, it said sales have been at 80% of pre-pandemic levels.
As a result, the firm added, profits since reopening are likely to be flat, reversing the heavy losses suffered during the year, as it takes advantage of the continued business and rates relief.
Wolverhampton-based Marston’s runs around 1,500 pubs, with 21 sites in Scotland. It also makes beers under a joint venture established with Carlsberg last year.
It reopened 710 of its venues in England on April 12 and a 66 more on April 26, when 145 also opened their doors again in Scotland and Wales.
Chief executive, Ralph Findlay said he believed reopening around 70% of its portfolio was a “brave” move, but “had been rewarded.”
Marston’s believes more normalised levels of trading will not be achieved until social distancing measures are removed.
Turnover at the company during the six month period dropped £343.3m to £55.1m, although the balance sheet was boosted by £291m form the sale of Marston’s brewing business.
“Our recent strategic investment in additional outdoor trading areas ahead of reopening has enabled us to capitalise on the clear pent-up consumer demand for the pub.”
Mr Findlay, who is stepping down as chief executive at the start of October, said: “Despite the challenges of the last year, the actions we have taken have ensured that Marston’s has emerged a stronger and more focused business with a substantially strengthened balance sheet, a 40% stake in Carlsberg Marston’s Brewing Company and a clear vision for the future.
“This is my last set of results as chief executive officer and I am confident that the business is in an excellent position to execute its strategy and deliver a return to growth as the country recovers from the pandemic.”
Mr Findlay forecast a return to pre-pandemic trading levels for the company by next year.
He added: “Whilst still early days, trading has been encouraging since we were permitted to open our doors for outdoor trading last month and it has been fantastic to have our teams back in the business, doing what they do best, and welcoming customers back into our pubs.
“Our recent strategic investment in additional outdoor trading areas ahead of reopening has enabled us to capitalise on the clear pent-up consumer demand for the pub.”
Marston’s announced earlier this month that Andrew Andrea, its current chief financial officer and corporate development officer, would replace Mr Findlay as chief executive from October 3.
Scot Mr Findlay said he hopes to remain in the in industry in some capacity and also revealed plans to ride his motorbike round the 500-mile NC500 Highland tourist route after he steps down.