The Group Is a Leading Independent Brewing and Registered No
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REAL ALE | REAL QUALITY | REAL WELCOME Marston’s PLC Marston’s House Brewery Road Annual Report 2009 Wolverhampton WV1 4JT The Group is a leading independent brewing and Registered No. 31461 Telephone 01902 711811 pub retailing business operating a vertically integrated business model. Annual Report 2009 2009 Report Annual We operate around 2,200 pubs and bars situated across England and Wales, comprising 1,688 tenanted or leased pubs and 496 managed pubs at the heart of thriving local communities offering a welcoming environment and value for money on food and drink. We operate five breweries — Banks’s Brewery in Wolverhampton, Marston’s Brewery in Burton upon Trent, Jennings Brewery in the Lake District, Ringwood Brewery in Hampshire and Wychwood Brewery in Oxfordshire. REAL ALE | REAL QUALITY | REAL WELCOME 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 REAL ALE | REAL QUALITY | REAL WELCOME Marston’s PLC Marston’s House Brewery Road Annual Report 2009 Wolverhampton WV1 4JT The Group is a leading independent brewing and Registered No. 31461 Telephone 01902 711811 pub retailing business operating a vertically integrated business model. Annual Report 2009 We operate around 2,200 pubs and bars situated across England and Wales, comprising 1,688 tenanted or leased pubs and 496 managed pubs at the heart of thriving local communities offering a welcoming environment and value for money on food and drink. We operate five breweries — Banks’s Brewery in Wolverhampton, Marston’s Brewery in Burton upon Trent, Jennings Brewery in the Lake District, Ringwood Brewery in Hampshire and Wychwood Brewery in Oxfordshire. REAL ALE | REAL QUALITY | REAL WELCOME 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 FInAnCIAL HIGHLIGHtS GROUP AT A GLANCE Revenue Underlying* Underlying* operating profit profit before tax 09 645.1 09 147.4 09 70.3 08 666.1 08 161.6 08 85.1 Group Revenue Share 07 652.8 07 163.2 07 98.0 06 595.5 06 152.3 06 101.5 05 556.1 05 137.6 05 89.7 57% £645.1m £147.4m £70.3m MORE ABOUT MARSTON’S INNS AND TAVERNS ON PAGE 12 �� Dividend per share Underlying* earnings per share * The underlying results reflect the performance of the Group before exceptional items. 09 7.1 09 13.4 The Directors consider that these figures provide a 08 9.5 08 18.3 useful indication of the underlying performance of the Group. 07 18.8 07 9.2 Earnings and dividends per share have been restated to reflect the 4-for-1 share split in January 2007 and Group Revenue Share 06 7.7 06 17.1 the impact of the issue of new shares under a rights issue in July 2009. 05 7.0 05 14.9 The comparatives for 2008 presented in the Chairman’s Statement, Business Review and Financial Review are provided on a comparable 52 week basis, 13.4p rather than the 53 weeks which was reported in the 7.1p prior period. 27% MORE ABOUT MARSTON’S PUB COMPANY �� CONTENTS ON PAGE 15 DIReCtIon GOVERNANCE COMPANY ACCOUNTS FINANCIAL HIGHLIGHTS DIRECTORS & ADVISERS 26 INDEPENDENT AUDITORS’ REPORT 95 GROUP AT A GLANCE 01 DIRECTORS’ REPORT 28 BALANCE SHEET 96 CHAIRMAN’S STATEMENT 02 CORPORATE GOVERNANCE REPORT 31 NOTES 97 INVESTING IN THE MARSTON’S ESTATE 04 DIRECTORS’ REMUNERATION REPORT 37 QUESTIONS & ANSWERS 06 STATEMENT OF DIRECTORS’ Group Revenue Share RESPONSIBILITIES 46 PeRFoRMAnCe BUSINESS REVIEW: 08 GROUP ACCOUNTS MARSTON’S INNS AND TAVERNS 12 FIVE YEAR RECORD 47 16% MARSTON’S PUB COMPANY 15 INDEPENDENT AUDITORS’ REPORT 48 MARSTON’S BEER COMPANY 18 INCOME STATEMENT 49 MORE ABOUT MARSTON’S FINANCIAL REVIEW 21 STATEMENT OF RECOGNISED INCOME AND EXPENSE 49 BEER COMPANY CORPORATE AND SOCIAL RESPONSIBILITY REPORT 23 CASH FLOW STATEMENT 50 ON PAGE 18 �� BALANCE SHEET 51 NOTES 52 MARSTon’S PLC Annual Report 2009 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 FINANCIAL HIGHLIGHTS GROUP At A GLAnCe Revenue Underlying* Underlying* operating profit profit before tax 09 645.1 09 147.4 09 70.3 08 666.1 08 161.6 08 85.1 Group Revenue Share 07 652.8 07 163.2 07 98.0 06 595.5 06 152.3 06 101.5 05 556.1 05 137.6 05 89.7 57% £645.1m £147.4m £70.3m MORE ABOUT MARSTON’S INNS AND TAVERNS ON PAGE 12 �� Dividend per share Underlying* earnings per share * The underlying results reflect the performance of the Group before exceptional items. 09 7.1 09 13.4 The Directors consider that these figures provide a 08 9.5 08 18.3 useful indication of the underlying performance of the Group. 07 18.8 07 9.2 Earnings and dividends per share have been restated to reflect the 4-for-1 share split in January 2007 and Group Revenue Share 06 7.7 06 17.1 the impact of the issue of new shares under a rights issue in July 2009. 05 7.0 05 14.9 The comparatives for 2008 presented in the Chairman’s Statement, Business Review and Financial Review are provided on a comparable 52 week basis, 13.4p rather than the 53 weeks which was reported in the 7.1p prior period. 27% MORE ABOUT MARSTON’S PUB COMPANY �� CONTENTS ON PAGE 15 DIRECTION GOVERNANCE COMPANY ACCOUNTS FINANCIAL HIGHLIGHTS DIRECTORS & ADVISERS 26 INDEPENDENT AUDITORS’ REPORT 95 GROUP AT A GLANCE 01 DIRECTORS’ REPORT 28 BALANCE SHEET 96 CHAIRMAN’S STATEMENT 02 CORPORATE GOVERNANCE REPORT 31 NOTES 97 INVESTING IN THE MARSTON’S ESTATE 04 DIRECTORS’ REMUNERATION REPORT 37 QUESTIONS & ANSWERS 06 STATEMENT OF DIRECTORS’ Group Revenue Share RESPONSIBILITIES 46 PERFORMANCE BUSINESS REVIEW: 08 GROUP ACCOUNTS MARSTON’S INNS AND TAVERNS 12 FIVE YEAR RECORD 47 16% MARSTON’S PUB COMPANY 15 INDEPENDENT AUDITORS’ REPORT 48 MARSTON’S BEER COMPANY 18 INCOME STATEMENT 49 MORE ABOUT MARSTON’S FINANCIAL REVIEW 21 STATEMENT OF RECOGNISED INCOME AND EXPENSE 49 BEER COMPANY CORPORATE AND SOCIAL RESPONSIBILITY REPORT 23 CASH FLOW STATEMENT 50 ON PAGE 18 �� BALANCE SHEET 51 NOTES 52 MARSTon’S PLC Annual Report 2009 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 17072 07/12/2009 Proof 9 01 Marston’s Inns and Taverns is the managed pub division of Marston’s n Tavern Table — comfortable surroundings and a warm welcome PLC and as at 3 December 2009 had 496 pubs and bars spread with a varied selection of cask ales and freshly prepared food. DIRECTION across England and Wales. n Milestone — large destination pubs offering the ultimate food GROUP AT A GLANCE GROUP AT The majority of the estate comprises community and food led pubs with choice of a hearty pub restaurant menu alongside a traditional a strong local customer base and an emphasis on value and quality. We carvery. have a range of brands, operating formats and offerings including: n Pitcher and Piano — premium venue bars with their own n Marston’s Inns — a collection of pubs with accommodation unique identity, created from bespoke designs and menus. located across England and Wales. n Bluu — a premium bar and brasserie serving quality wines, n Marston’s Two for One — when two adults each order a main spirits, beers, handmade cocktails and fresh food. course, the lower priced meal is free, all day, every day. PERFORMANCE Marston’s Pub Company operates 1,688 tenanted and leased pubs At Marston’s Pub Company we aim to build strong relationships (as at 3 December 2009). Our income is derived from the sale of with our tenants and lessees so that we can work together to beers, ciders, wines, spirits and soft drinks to the tenants and lessees develop long term sustainable businesses. We also provide training of these pubs, from rent and a share of the income from gaming and advice to our tenants and lessees. We are constantly seeking machines. to offer value adding business solutions through our Business Development Managers, My Marston’s Online and our Customer GOVERNANCE The self-employed tenants and lessees who run these pubs on a day Service Team. to day basis derive their revenue from drink and food sales, gaming machines and accommodation. Our pubs are rented for between We seek to attract the best tenants and lessees to our pubs by three and 21 years. offering a wide range of agreements and a flexible approach to the sharing of risk and reward. Marston’s Beer Company is the brewing division of Marston’s PLC n Jennings Brewery, Cockermouth, producing Jennings beers such FINANCIAL STATEMENTS and focuses on premium cask and bottled beers with a strong as Cumberland Ale, Cocker Hoop and Sneck Lifter. consumer following and an emphasis on local provenance. Our brands include a wide range of classic English ales brewed in our n Ringwood Brewery, Hampshire, known for its premium cask beer five brand-led breweries: range including Best Bitter, Fortyniner and Old Thumper. n Marston’s Brewery, Burton upon Trent, where our famous national n Wychwood Brewery, Witney is home to Hobgoblin, the Brakspear flagship brand Marston’s Pedigree is brewed alongside other ale range and a comprehensive seasonal ale calendar. beers such as Old Empire IPA and Burton Bitter. We are committed to reducing our environmental footprint; recent n Banks’s Brewery, Wolverhampton, brewing Banks’s Bitter and initiatives have included introducing lightweight glass, recycling used Original, the West Midlands’ favourite brands. cooking oil to power delivery vehicles and reducing the amount of water and energy we use.