UPDATE 2-"Value-for-money" offering keeps Marston's on track
(Adds details from statement)
LONDON, July 28 (Reuters) - Pub and brewing firm Marston's (MARS.L) said enticing more consumers to eat in its pubs and value-for-money offers would help it cope in what it forecast would be a tough economic environment for at least a year.
The group, updating on trade for the first 43 weeks of its fiscal year, reported a 2.0 percent rise in group revenue versus the previous year and said on Monday it anticipated full-year results would be broadly in line with its expectations.
Analysts are currently forecasting pre-tax, pre-exceptional profit for the company of 90.76 million pounds ($180.1 million) for the year to September 2008 compared with 98.5 million pounds the year before.
"The trading update was reassuring," Landsbanki analysts said in a research note. Landsbanki said it was retaining its "hold" recommendation on the stock, which was down 1.2 percent at 187 pence by 0820 GMT.
Rival JD Wetherspoon's was down 1.8 percent at 227 pence, while larger competitor Mitchells & Butlers (MAB.L) was 2.4 percent lower at 258-1/2 pence.
Marston's has an estate of more than 2,000 pubs of which just over 500 are directly managed, including the Pitcher & Piano chain. Like many pub chains, it has focused on encouraging consumers to eat as well as drink at its venues.
"I'm encouraged that we're seeing growth in eating out in Marston's pubs," Chief Executive Ralph Findlay told Reuters in a telephone interview.
"Customers are looking more and more for value for money and we're competing with other value-for-money competitors," he said.
These included supermarkets and off-licences, all trying to offer cheap deals on food or drink to attract cash-strapped shoppers.
"I think over the next year or so we're not expecting any short term improvement in the economic environment," Findlay said, although he added the group believed it was well positioned to trade well through in a tough market.
Findlay said that while food sales had continued to increase, sales from drinks and gaming machines continued to decline, a change in sales mix that was hurting operating margins.
"Our margins are holding up but we think that margin pressure is likely to continue over the next 12 months," he said.
Marston's said like-for-like sales at its Inns and Taverns division in the 43 weeks to July 26 was 0.6 percent below the same period in 2007, while like-for-like profit at its Pub Company was down 1.2 percent. (Editing by David Cowell)
