Marston’s estate carrying value rises to £2.1bn

Pub chain Marston’s full-year results include a slight increase in the carrying value of its estate to £2.1bn. The company operates an estate of 1,468 predominantly freehold pubs with limited exposure to city centres. The carrying value of the estate, reported in results posted today for the year to 1 October, is £2.1bn, compared with £2bn in 2021. This followed a valuation and leasehold impairment review, which led to a freehold impairment reversal of £88.4m and a leasehold impairment reversal of £5m, giving a £93.4m increase in net book value. During the period, net asset value increased by £241.7m to £648.1m. This was primarily due to the increase in the value of the estate and reduction in liabilities from interest rate swaps.  Net asset value per share increased to £1.02 (2021: £0.64). Marston’s reported that like-for-like sales had reached 99% of its 2019 levels, despite the disruption to trading last Christmas caused by the Omicron variant. Revenue rose to almost £800m, up from £401.7m the previous year and nudging close to its target of £1bn pounds. Pre-tax profit was up to £163.4m from a loss of £171.1m the previous year. The group said it has moved to annual external valuations of its properties and all pubs will be inspected on a rotational basis. Each year, valuation will be based on a physical inspection of approximately one third of the estate with the remainder subject to a desktop valuation. To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews