The 'F-Plan' pays off for pubs group Marston's

The group, which has more than 2,000 pubs and brews ales including Pedigree, Hobgoblin and Brakspear, said the financial year for the 12 months to October 2 showed stronger trends in all three of its operating divisions.

Sales in its 489-strong managed pub business rose 1.7 per cent in the year and by the same percentage in the final nine weeks of the trading period.

A rise in food sales of 2.5 per cent outstripped drinks growth of 1.4 per cent in the year as Marston's benefited from its F-Plan strategy, which has seen it focus on "food, families, females and forty/fifty somethings".

Food sales now account for around 40 per cent of sales in the managed estate and has been accompanied by a plan to add more new-build outlets.

The Wolverhampton-based company opened 15 new sites in the year and said turnover and profits at the sites were ahead of its expectations. Marston's plans to open 20 new pub restaurants in 2011 and 25 in 2012.

In the tenanted and leased pubs division, underlying profit trends have continued to improve with like-for-like profits expected to be 3.7 per cent below last year, compared with the 4.5 per cent decline reported in May.

The beer business is likely to report turnover and operating profits slightly ahead of last year, despite strong comparatives.

Own-brewed ale volumes were slightly lower than last year, but continued to outperform the UK beer market, Marston's added.

Shares were more than one per cent higher after analysts said the company had posted a decent performance in the face of dire weather conditions in August and September.

The company is forecast to report profits of around 73m in the year, up slightly on a year earlier.