Marston's (MARS) H1 2025 earnings summary

Executive summary

• Achieved strong profit growth and significant strategic progress in H1 2025, with like-for-like revenue up 2.9% for 31 weeks and total revenue at £427.4 million, flat year-on-year due to disposals.

• EBITDA reached £85.9 million, up 14% year-on-year, with margin improvement of 250 basis points to 20.1%.

• Underlying profit before tax was £19.0 million, a significant increase from a small loss in the prior year.

• Recurring free cash flow for H1 was £5.9 million, impacted by working capital outflow and higher capex, with confidence in achieving over £50 million in the near to medium term.

• Strategic focus on high-margin, cash-generative local pub business, with progress in operating model, new formats, and digital transformation.

Financial highlights

• Like-for-like sales grew 2.9% over 31 weeks, with strong recent performance and total revenue stable at £427.4 million despite £50 million of disposals.

• EBITDA margin improved to 20.1%, up nearly 250 basis points year-on-year.

• Pub operating profit increased 20% to £63.3 million.

• Earnings per share for H1 was 2.2 pence; basic EPS from continuing operations 2.3p.

• Net debt reduced to £881.1 million, and net asset value per share rose 13% to £1.07.

Outlook and guidance

• Confident in delivering FY2025 performance in line with market expectations, including a 25% EBITDA margin and market consensus for underlying PBT of £66.8 million.

• Recurring free cash flow target of over £50 million in the near to medium term remains on track.

• Like-for-like revenue growth for the full year expected at 3–3.5%, with total revenue growth lower due to disposals.

• Margin progression and positive H2 outlook supported by strong post-period trading and demand-driving events.

• Capex expected to total approximately £60 million for FY2025.