Sector movers: Marston's margins under pressure
Pub group and brewer Marston’s was cautious about its outlook as it said margins for the six months to March will be hit by changes in the sales mix.
“We remain cautious about the outlook for 2008, and the recent increase in beer duty adds to the pressures on tenants and free trade operators in an already challenging trading environment,” said the group.
It warned that pre-tax profit for the half-year will reflect the higher interest costs associated with the £150m share buy-back programme in 2007. Operating profit (before interest and taxation) is expected to be in line with last year.
In Marston's Inns & Taverns, like-for-like sales for the 24 weeks to 15 March 2008 were 0.3% above last year. Food sales showed like-for-like sales growth of 7.8%, although higher margin wet sales and machine income were 3.1% and 10.3% below last year respectively.
In Marston's Pub Company, like-for-like profit was slightly below last year while in the Beer company, overall volumes remain below last year.
Shares in Nostra Terra rallied after the oil and gas firm said it successfully re-opened Well 24 within the Cenomanian reservoir within the Ukraine's Oktyabrskoe oil field with positive results.
“I am delighted with this news which underpins the success of our strategy to reopen certain wells within the Oktyabrskoe region which were previously producing oil,” said chief executive Brian Courtney.
“I expect steady progress and look forward to reporting further good news in due course,” he added.
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