Pub group Marston’s (MARS) warned that, despite a 3 per cent increase in revenue to £1.2bn over the 12 months to September, it expects to report underlying pre-tax profit of around £101m, down from £104m during FY2018. Improved profits in the taverns and beer business was not enough to compensate for lower earnings in the destination and premium business.
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Marston’s is selling off assets to pay down debt and cutting investment in new pubs. Management now appears to be running the business for cash, to help pay down its heavy debt burden while supporting the dividend.
