Pubs firm Marston’s on Wednesday took the axe to its plans to open new boozers, blaming the confused political landscape as a result of Brexit.
Chief executive Ralph Findlay said: “Regrettably the government doesn’t know what’s going to happen in March. So we do think it is appropriate to be more cautious.”
He added: “We operate in increasingly uncertain times from a political and macro-economic perspective.”
Investments in new-build sites will be slashed to £25 million from around £50 million per year from 2020 onwards.
The pub operator and brewer is also looking to sell £80-£90 million of non-pub properties in 2020-2023. It wants to cut its net debt by £200 million to £1.2 billion by 2023.
Marston’s saw comparable sales rise 1.4% in the 16 weeks to January 19, boosted by drink-led pubs.
Shares fell 3.55p to 99.25p.
Elsewhere in the industry today JD Wetherspoon posted results. Comparable sales rose 7.2% in the first 12 weeks of the second quarter to January 20, and year-to-date figures increased 6.3%.
Brexiteer chairman Tim Martin said the group’s wage bill was up £30 million. First-half pre-tax profits are expected to be lower than last year’s £60 million, though full-year expectations are unchanged. Shares in JD Wetherspoon slipped 11p to 1185p.
