UK pub operator Marston’s sees tough winter ahead, seeks more government support

(Reuters) – British pub operator Marston’s Plc warned on Thursday that winter months would be challenging with a majority of its pubs remaining closed after fresh COVID-19 curbs, and called for more government support to bail out the sector.

The company said the outlook is more positive looking forward as Britain began mass-vaccinating its people against COVID-19 earlier this week, adding that Prime Minister Boris Johnson has strongly intimated that curbs will ease in the spring.

“The roll out of the vaccine is clearly critical … but in the meantime, the sector continues to face major challenges and government support will need to continue in order for many viable businesses to survive,” Chief Executive Officer Ralph Findlay said.

The company, which has already launched consultations on up to 2,150 job losses to deal with the sales hit due to lockdowns, said that government support through reduced value-added tax, business rates holiday and other taxes remains necessary.

Marston’s, a two-century old brewer known for its Pedigree, Hobgoblin and Lancaster Bomber beers, said underlying pretax loss was 22 million pounds ($29.35 million) for the year ended Oct. 3, compared with a profit of 95.1 million pounds last year.

Pubs, restaurants and other leisure businesses have been severely hit by coronavirus-induced curbs, and were further hammered after Britain entered a new three-tier system of local lockdowns in October.

“The rollout of COVID vaccines is very welcome and although trading restrictions are likely to linger well into 2021, we think the timing and initial shape of recovery is less important now,” brokerage Stifel’s analyst Mark Irvine-Fortescue said in a note.