Due to the coronavirus pandemic, Marston’s revenues will decline by 30% in fiscal year 2020.
The British pub operator plans to cut 2,150 jobs due to new COVID-19 restrictions.
The home furnishings retailer Dunelm reports a 37% increase in quarterly sales.
Marston’s plc (LON: MARS) published its full year results on Thursday, according to which sales in the financial year 2020 are expected to have fallen significantly due to the coronavirus pandemic, which has so far infected more than 650,000 people in the UK and caused over 43,000 deaths.
Marston will cut 2,150 jobs due to the new COVID 19 restrictions
New restrictions attributed to the COVID 19 crisis, the company said, will lead to significant job cuts affecting 2,000 employees. According to Marston’s
“Due to recent additional restrictions, we are reluctant to conclude that about 2,150 jobs in pubs currently on vacation will be affected.
The UK Competition and Market Authority (CMA) last week approved a £780 million joint venture between Marston’s and Carlsberg’s UK brewing arm.
For the financial year ending 3rd October, the UK pub business saw its turnover fall by 30% per annum to £821 million. Pub sales, he added, were £515 million in the 2020 financial year, while sales to Marston’s Beer Company were £306 million. Pubs and Beer Company sales were down 34% and 22% respectively year on year.
The company’s shares fell by 2.5% in pre-trade trading on Thursday and by a further 3.5% when the market opened. In the year to date the company, with a market capitalisation of £265.63 million, has now fallen by more than 65% on the stock market.
Dunelm records a 37% increase in quarterly sales
In a separate news release from the UK, Dunelm Group plc (LON: DNLM) said on Thursday that its sales were 37% higher in the first quarter of the financial year due to increased online sales. The home furnishings retailer has also reopened its stores to the public in recent months as the government has eased COVID 19 restrictions, which has led to a further increase in its financial performance in the first quarter.
For the quarter ended September 26, the UK company reported revenues of £359.1 million, compared to £262.6 million in the same quarter last year. Digital sales accounted for 29.7% of total quarterly sales, compared to 17.6% last year.
Dunelm also said on Thursday that it would repay £14.5 million that it had received under the government’s job retention programme. In an earlier report Dunelm had reported annual sales growth of 24% in August.
The £3.04 billion company, which has a price-performance ratio of 34.98, is currently up 30% on the previous year.