Marston's reports New Year slump

The group, which has 2,200 pubs in England and Wales and brews cask ales including Pedigree and Hobgoblin, said several days of snow impacted on its managed pubs arm, slowing growth to 1.5 per cent for the 16 weeks to last weekend.

This included a rise of 2.9 per cent in the five weeks to January 2 after a pleasing festive period when food sales rose 4.4 per cent and drink trade lifted 1.9 per cent.

Sales trends have since returned to levels seen before the weather disruption as Marston's said it continued to trade in line with hopes.

As well as 497 managed pubs including Marston's Tavern Table, Two for One and Pitcher & Piano, the company's estate features 1,680 tenanted and leased pubs. The division reported a like-for-like profits fall of 4.9 per cent in the 16 weeks, compared with a decline of seven per cent in the year to October.

In the brewing division, beer volumes were in line with last year, compared with a 6 per cent decline in the overall market. The performance included a 16 per cent increase in premium bottled ale volumes.

Marston's, which raised 165.5m from shareholders in a rights issue in July, intends to build 60 new pubs over the next three years, including around 15 sites in the current financial year to the start of October.

Marston's has said its recent improved sales trend reflected value-for-money offers and its F-Plan strategy, which has seen the company focus on "food, families, females and forty/fifty somethings".

It is also capitalising on longer term trends towards more eating out, as food sales now account for 38 per cent of its revenues, up from 27 per cent in 2004.