Marston’s Profits to Beat Top End of Forecasts as Grandstand Drives Conversion Push
Marston’s expects to report underlying profit before tax above the top end of market expectations for the 2026 financial year, as it accelerates its pub format conversion programme and prepares to return cash to shareholders.
In a trading update for the 52 weeks to 26 September 2026, the listed operator of more than 1,300 pubs said it was on course for a third consecutive year of significant profit growth. Profits are now more than three times the level of FY2023, it said.
Company-compiled forecasts had put FY2026 underlying profit before tax at £78.4m, within a range of £76.1m to £83.2m. In FY2023, underlying profit before tax from continuing operations, restated to exclude the discontinued CMBC business, was £25.6m.
Underlying EBITDA margin rose by around 100 basis points, which Marston’s attributed to its pub operating model and cost control.
Grandstand leads format rollout
The group described its new pub formats as a “proven engine of growth”, with Grandstand singled out as the standout performer. Marston’s said Grandstand is delivering returns on invested capital above 30%, with FY2026 investments generating sales growth of around 30% compared with pre-investment levels.
After 60 format conversions in FY2026, the company will carry out at least 100 in FY2027, focused on Grandstand. It said the programme is scaling into a material driver of group sales and profit.
Marston’s also pointed to progress in investing in its local pubs and in managing its property portfolio, both of which it said enhanced profitability.
Like-for-likes improve through the year
Trading remained challenging on a full-year basis, with like-for-like sales 1.2% lower. Performance improved through the period, however, and like-for-like sales were broadly flat in the fourth quarter. The company credited new formats, stronger summer trading and an “excellent” World Cup.
Leverage halved, buybacks planned
Recurring free cash flow remained strong, supporting further deleveraging to around 4.2x EBITDA, excluding IFRS 16 lease liabilities. Marston’s said leverage is now broadly half its FY2023 level.
The board intends to announce a programme of shareholder returns alongside its preliminary results. Subject to market conditions, it is expected to take the form of share buybacks.
Chief executive Justin Platt said: “We have delivered a third consecutive year of significant profit growth, margin improvements and strong recurring free cash flow. Our differentiated pub formats continue to drive excellent returns, and our guest satisfaction scores show that we continue to delight our customers – a credit to our talented, hard-working teams.”
He added: “With clear strategic priorities and our new format conversion programme expanding to at least 100 pubs next year, we enter the new year well set to drive our next phase of growth.”