Category: Top Story

British grocery price inflation increased to 2.5% in the four weeks ended 4 October 2026, according to figures released on Tuesday by market research firm Worldpanel by Numerator, as consumers faced renewed price pressures across selected food and household product categories.

The latest data showed differing price trends across supermarket products, with water, cordials and skincare items recording the largest increases during the reporting period.

By contrast, butter, cheese and chocolate experienced the steepest price declines, reflecting variations in pricing conditions across grocery categories.

The figures provide an early indication of UK grocery price movements in October, ahead of the publication of official September inflation statistics by the Office for National Statistics on 21 October.

Food price inflation has remained below earlier industry forecasts during 2026, supported by competition among major supermarket chains, consumer resistance to higher prices and improvements in retailers’ and suppliers’ hedging arrangements.

Competition in the UK grocery sector has continued to influence pricing decisions, with retailers balancing the need to recover operating costs against pressure to maintain sales volumes and customer loyalty.

Despite the relatively contained inflation rate recorded in October, industry groups have warned that food price pressures could increase substantially during 2027.

Forecasts suggest UK food inflation could approach 7% next year, with potential increases linked to disruption in the Middle East, higher production and distribution costs, and extreme weather associated with El Niño.

These projections remain subject to uncertainty, particularly regarding commodity prices, supply chain conditions and the extent to which retailers pass additional costs on to consumers.

Worldpanel’s latest figures also indicated slower growth in overall grocery spending.

Total UK grocery sales increased by 1.0% year on year during the four weeks ended 4 October, below the reported grocery price inflation rate of 2.5%.

The difference suggests that the quantity of groceries purchased declined on an inflation-adjusted basis, although changes in product mix and shopping patterns can also affect the relationship between spending and volumes.

The figures indicate that households remain sensitive to grocery prices, with spending growth failing to keep pace with the overall increase in prices.

For supermarket operators, this environment creates competing pressures as retailers seek to protect sales volumes while managing costs and maintaining profitability.

Among the major listed grocery retailers, Tesco (LSE:TSCO) reported sales growth of 1.0% over the 12 weeks ended 4 October.

However, the UK’s largest supermarket chain recorded a decline in market share for the fifth consecutive reporting period.

The figures suggest Tesco continued to generate sales growth, although its relative position within the grocery market weakened during the period covered by the research.

Marks & Spencer (LSE:MKS) recorded considerably stronger food sales growth, with grocery revenue increasing 14.9%.

The retailer remained the UK’s fastest-growing food operator according to the reported figures, although Worldpanel noted that Marks & Spencer is not fully represented in its dataset.

This difference in coverage should be considered when comparing its performance directly with other supermarket groups.

The contrast between Tesco’s 1.0% sales growth and Marks & Spencer’s 14.9% increase highlights the varying performance of major retailers within the broader grocery market.

While the overall sector recorded modest spending growth, individual operators experienced different outcomes as consumers adjusted their shopping habits and purchasing decisions.

Looking ahead, grocery inflation will remain an important indicator for both retailers and consumers, particularly as businesses assess the potential effects of higher input costs and international supply disruptions.

The October Worldpanel figures suggest that supermarket competition has continued to moderate price increases, although the outlook for 2027 remains uncertain.

Further information on UK inflation trends will become available with the release of official September consumer price data on 21 October.

For the grocery sector, the latest figures point to continued pressure on inflation-adjusted sales volumes, alongside differences in performance between leading supermarket chains.

BP (LSE:BP.) expects to recognise post-tax impairment charges of between $3.0 billion and $4.5 billion in the third quarter of 2026, primarily related to its gas and low-carbon energy businesses, according to a trading update released on Tuesday.

The oil and gas company also forecast a substantial reduction in net debt during the three months ended 30 September, alongside improved refining performance and stronger gas marketing and trading results.

BP expects net debt to be between $13.5 billion and $14.5 billion at the end of September, compared with $22.3 billion at 30 June.

The projected reduction represents a decline of approximately $7.8 billion to $8.8 billion over the quarter.

The company identified several factors affecting its debt position and cash movements during the period, including the redemption of hybrid securities, higher income tax payments, working capital releases and capital expenditure.

BP did not provide a detailed reconciliation of the expected net debt reduction in the supplied trading update.

The anticipated impairment charges relate to changes within the company’s gas and low-carbon energy operations.

These non-cash accounting charges are expected to affect BP’s reported third-quarter earnings, although they do not necessarily represent equivalent cash expenditure during the period.

The company expects to recognise the impairments as part of its financial results for the quarter, with the final amounts subject to its reporting process.

In upstream operations, BP narrowed its third-quarter production guidance to between 2.190 million and 2.240 million barrels of oil equivalent per day (boe/d).

This compares with production of 2.201 million boe/d in the second quarter.

The company maintained its full-year production guidance of between 2.180 million and 2.270 million boe/d, indicating no change to its annual output expectations.

BP also reported a reduction in realised crude oil prices during the quarter.

The company’s average realised Brent price was $96.99 per barrel in the third quarter, compared with $103.85 per barrel in the preceding three-month period.

The decline in realised prices represents a reduction of approximately 6.6% quarter on quarter.

Despite the lower average realised Brent price, BP expects improved performance from its refining operations.

The company indicated a third-quarter refining margin contribution in the range of $1.9 billion to $2.1 billion, alongside expected refinery throughput of between 1.375 million and 1.405 million barrels per day.

The anticipated refining performance reflects conditions in global fuel markets, where supply disruptions have supported refining margins.

Energy markets have experienced significant volatility during 2026, with disruptions linked to the conflict involving the United States and Iran affecting oil supplies and refining operations in the Middle East.

Additional pressure on refining capacity has followed Ukrainian attacks on Russian energy infrastructure in recent months.

These developments have contributed to changes in crude oil and refined product markets, influencing trading conditions for international energy companies.

BP’s downstream business includes refining and marketing activities, which are affected by movements in crude oil prices, product prices and refinery operating margins.

The company also expects a stronger contribution from its gas marketing and trading activities during the third quarter.

BP said the result from this business is expected to be significantly higher than in the second quarter, although it did not provide a specific earnings estimate.

Gas marketing and trading performance can vary between reporting periods, reflecting changes in commodity prices, market volatility and trading activity.

The expected improvement represents another factor influencing BP’s third-quarter earnings alongside its upstream production, refining performance and impairment charges.

The company’s trading update provides preliminary operational and financial indicators ahead of the publication of its complete quarterly results.

BP is scheduled to release its third-quarter earnings on 30 October 2026, when it will provide further information on profitability, cash flow, debt and performance across its operating businesses.

The results will also provide additional detail on the impairment charges associated with its gas and low-carbon energy operations.

For the third quarter, BP’s financial performance is expected to reflect contrasting developments, including significant impairment charges, lower realised Brent prices, improved refining margins and a stronger gas trading contribution.

The company enters its earnings announcement with net debt expected to have fallen substantially from the end of June, while maintaining its full-year upstream production guidance.

About BP

BP is an international energy company engaged in the exploration, production, refining, trading and marketing of oil, natural gas and related energy products.

Its operations include upstream oil and gas production, refining, fuel marketing and energy trading, alongside activities in lower-carbon energy.

The company’s financial performance is influenced by global commodity prices, production volumes, refining margins, trading conditions and capital investment requirements.

BP operates across international energy markets and reports financial results covering its upstream, downstream and other energy-related businesses.

The company is listed on the London Stock Exchange under the ticker LSE:BP. and on the New York Stock Exchange under NYSE:BP.

Bellway (LSE:BWY) reported a 13.6% increase in full-year revenue to £3.16 billion for the year ended 31 July 2026, supported by higher housing completions, while underlying profit before tax rose 5.7% to £305.7 million.

The UK housebuilder completed 9,695 homes during FY2026, representing an increase of 10.8% compared with the previous financial year.

Bellway also reported a 36% increase in adjusted operating cash flow to £868.6 million, reflecting cash generation from its development activities and supporting further shareholder distributions.

The board increased the annual dividend by 7.1% to 75p per share and announced plans for a £150 million share buyback programme during FY2027.

The company ended the financial year with net cash of £157.7 million and low adjusted gearing, providing financial capacity to support its development programme and planned capital returns.

Despite the improvement in annual revenue and profitability, Bellway expects a reduction in housing completions during FY2027 as market conditions remain challenging.

Management has set a completion target of between 9,000 and 9,400 homes for the new financial year, compared with the 9,695 properties delivered in FY2026.

The guidance represents a potential reduction of approximately 3% to 7% in annual completions.

Bellway said customer demand continues to be affected by economic uncertainty and elevated mortgage rates, which have placed pressure on housing affordability.

The company also expects operating margins to face pressure from construction cost inflation, increased use of sales incentives and a higher proportion of bulk sales.

Bulk sales, which involve transactions covering multiple properties, are expected to account for a greater share of Bellway’s completions during FY2027.

Management said these transactions would help support sales volumes and cash generation, although their contribution to the overall sales mix is expected to affect margins.

The group is responding to these conditions through tighter cost controls and further standardisation of its operating processes.

Bellway has been implementing measures intended to improve efficiency across its regional divisions, including changes to construction methods and procurement activities.

The company is also developing its timber frame manufacturing capabilities through a new facility, which forms part of its efforts to improve construction efficiency and support future housing delivery.

Management expects greater operational consistency and the use of standardised processes to contribute to longer-term improvements in margins and returns.

Bellway maintains a substantial land bank comprising owned development sites and strategic land interests, providing capacity for future construction activity.

The group intends to manage investment in new land alongside its existing development commitments, with capital allocation remaining a priority as it balances operational expenditure and shareholder returns.

The increase in adjusted operating cash flow to £868.6 million during FY2026 contributed to the company’s year-end net cash position.

This financial performance has enabled Bellway to increase its dividend and introduce a £150 million share repurchase programme for FY2027.

The proposed buyback will operate alongside the company’s ongoing investment in land, construction and development activities.

Bellway also highlighted the potential implications of government measures intended to improve access to home ownership.

The company welcomed the proposed Your First Home scheme, which is intended to support first-time buyers entering the housing market.

Management believes measures addressing affordability could support demand for newly built homes, although the timing and scale of any benefit will depend on the final policy arrangements and broader market conditions.

Bellway continues to operate across the private and affordable housing markets, delivering properties through its nationwide network of regional divisions.

The company has maintained a five-star customer satisfaction rating from the Home Builders’ Federation for ten consecutive years, reflecting its performance against the organisation’s customer recommendation criteria.

Looking ahead, Bellway expects FY2027 to be affected by lower completion volumes and margin pressures associated with construction costs and its anticipated sales mix.

The group is focusing on cash generation, cost management and operational efficiency while maintaining investment in its development pipeline.

Its priorities include delivering between 9,000 and 9,400 homes, progressing improvements to construction processes and managing its land portfolio in response to market demand.

Bellway also intends to continue returning capital to shareholders through dividends and the planned £150 million buyback.

The company’s longer-term strategy remains focused on increasing housing output and improving financial returns when market conditions and affordability allow.

About Bellway plc

Bellway plc is a UK residential property developer specialising in the construction and sale of private and affordable new homes.

The company operates through a nationwide network of regional divisions, developing residential properties across a range of locations and price categories.

Its activities include land acquisition, planning, residential construction and property sales.

Bellway maintains an extensive portfolio of owned and strategic land interests to support future development and housing delivery.

The group is investing in operational improvements, including standardised construction processes and timber frame manufacturing capabilities, to support efficiency and development capacity.

Bellway has retained a five-star rating from the Home Builders’ Federation for ten consecutive years.

The company is listed on the London Stock Exchange under the ticker LSE:BWY.

Its financial strategy focuses on cash generation, capital discipline, low gearing and shareholder distributions through dividends and share repurchases.

Whitbread (LSE:WTB) reported modest revenue growth but a decline in statutory profit for the first half of FY2027, as higher accommodation sales across its hotel operations were offset by restructuring costs and inflationary pressures.

The Premier Inn owner said performance reflected continued demand for accommodation in the UK, Ireland and Germany, alongside expenditure associated with its Accelerating Growth Plan and wider Five-Year Plan.

Despite the reduction in statutory profitability, Whitbread reported an improvement in return on capital and maintained its dividend, while delivering £39 million of cost savings during the reporting period.

The company reaffirmed its confidence in its full-year outlook as it continued implementing changes intended to simplify its operating model and increase the proportion of earnings generated by its hotel business.

Whitbread has been moving towards a hotel-focused operating structure, reducing its exposure to branded restaurants and concentrating investment on accommodation capacity and operational efficiency.

The transition forms part of the group’s strategy to improve returns from its existing property portfolio while expanding its hotel network in selected markets.

During the first half, Whitbread continued optimising its UK estate, including the closure of its remaining branded restaurants.

The programme is designed to shift the group’s operating activities towards accommodation, with management seeking to reduce costs and improve the financial performance of its hotel properties.

Whitbread also reported progress with the disposal of 173 sites as part of its portfolio restructuring.

The company has been pursuing these sales to release capital from properties that no longer fit its intended operating model.

Proceeds from the disposal programme are expected to contribute to the group’s capital allocation priorities, although the supplied update did not disclose the total expected consideration or the number of sales completed during the period.

The restructuring programme has contributed to transition costs affecting statutory profitability, while inflation has continued to place pressure on operating expenses.

Whitbread said these factors partly offset the contribution from higher accommodation sales.

The group nevertheless achieved £39 million of cost savings during the first half, reflecting progress with its efficiency initiatives.

Management expects operational simplification and changes to its property portfolio to support its longer-term financial objectives.

Alongside its UK restructuring activities, Whitbread continued expanding its Premier Inn operations in Germany.

The company opened 1,771 new rooms in the German market during the period, contributing to double-digit growth in accommodation sales.

Whitbread also reported that its German business continued to outperform the wider market, although the supplied update did not provide the comparative market figures.

Germany remains an important area of expansion for the group as it develops its hotel network outside the UK.

The company has been increasing its room capacity to establish a larger presence in the German budget accommodation market, while continuing to operate its established Premier Inn business in the UK and Ireland.

Whitbread’s Five-Year Plan combines international room expansion with UK estate optimisation, cost reductions and changes to capital allocation.

The group is targeting £2 billion of cash available for shareholder returns by FY2031.

This target forms part of its longer-term financial objectives and remains dependent on future operating performance, investment requirements and cash generation.

The company maintained its dividend for the first half, continuing its existing approach to shareholder distributions during the restructuring programme.

Whitbread also addressed a shareholder resolution proposed by Corvex, with the board recommending that investors vote against the proposal.

The supplied update did not specify the resolution’s terms or the board’s detailed reasons for opposing it.

The shareholder matter comes as Whitbread continues implementing its current strategy, including property disposals, hotel expansion and measures intended to improve returns on invested capital.

Looking ahead, management maintained its confidence in the group’s full-year outlook despite the impact of transition costs and inflation during the first half.

The company expects its ongoing restructuring and efficiency measures to contribute to the development of a more hotel-focused business, although the timing of financial benefits will depend on the completion of planned changes.

Whitbread’s priorities include progressing the sale of the 173 identified sites, completing its exit from branded restaurants, expanding accommodation capacity and continuing its cost reduction programme.

The group is also working towards its longer-term objective of generating £2 billion of cash available for shareholder returns by FY2031.

With accommodation revenue increasing across its principal markets, Whitbread is continuing its operational transition while managing the associated costs and maintaining investment in its Premier Inn network.

About Whitbread PLC

Whitbread PLC is a UK-based hospitality company and the owner of Premier Inn, a budget hotel brand operating across the UK, Ireland and Germany.

The group provides accommodation services through its hotel network, serving business and leisure customers in a range of locations.

Whitbread is implementing a strategy to concentrate its operations on hotels, including the closure of branded restaurants and the disposal of selected properties.

Its development programme includes expanding room capacity, improving operational efficiency and optimising returns from its existing estate.

The company is also investing in its German hotel operations as part of its international expansion strategy.

Whitbread is listed on the London Stock Exchange under the ticker LSE:WTB.

YouGov (LSE:YOU) reported a 2% increase in full-year revenue to £396.6 million for FY2026, with financial performance broadly in line with management guidance despite lower adjusted operating profit and margins.

The international research and data analytics company said stronger trading during the second half supported its annual revenue performance, while investment in its operations and non-cash impairment charges affected reported profitability.

YouGov also outlined plans to continue its cost reduction programme, expand its artificial intelligence capabilities and return up to £15 million to shareholders through a share buyback programme.

The company expects adjusted operating profit to increase by between 7% and 12% in FY2027, supported by operational changes and its ongoing Value Delivery Plan.

During FY2026, performance varied across YouGov’s three principal business divisions: Data Products, Research and Shopper.

The Data Products division reported higher profits and improved margins, reflecting performance across its established data and analytics offerings.

The division provides clients with research datasets and analytical products designed to support commercial decision-making, brand monitoring and consumer understanding.

YouGov’s Research division reported improvements in its pipeline of strategic projects, as the company continued developing relationships with corporate and institutional clients.

The business provides customised research services, including studies designed to assess consumer behaviour, market conditions and brand performance.

Meanwhile, the Shopper division delivered relatively stable revenue but experienced a reduction in profitability.

The company attributed the division’s performance partly to targeted investment and confirmed that a strategic review of the business was under way.

The review forms part of YouGov’s broader assessment of its operations and allocation of resources across the group.

Management said the company was progressing ahead of schedule with its Value Delivery Plan, which is intended to simplify operations, reduce costs and improve financial performance.

The programme has already delivered savings, although the supplied update did not specify their total value.

YouGov has been implementing operational changes alongside investment in technology and product development, seeking to improve efficiency while maintaining its research and analytics capabilities.

Artificial intelligence remains an area of investment for the company, with management highlighting the development of AI-enabled products and services.

During the year, YouGov launched YouGov Voices, a new offering incorporating AI technology into its research and data capabilities.

The company said the product had already contributed to new business generation, although it did not disclose the associated revenue or contract values.

YouGov is continuing to integrate AI tools into its products and internal processes, using its research panels and existing datasets to support the development of new analytical services.

Management sees opportunities to expand its product portfolio as clients seek data and research services that can be incorporated into AI-supported business processes.

Alongside its operational initiatives, YouGov reported improvements in cash conversion and extended its debt facilities.

The extension provides additional financing arrangements as the company continues implementing its operational and investment plans.

The board also announced a change to its approach to shareholder distributions.

Instead of paying a dividend for FY2026, YouGov intends to undertake a share buyback programme of up to £15 million.

The proposed repurchases will provide a mechanism for returning capital to shareholders, with the amount ultimately deployed dependent on the programme’s execution.

Looking ahead, YouGov expects adjusted operating profit growth of 7% to 12% in FY2027.

The forecast reflects management’s expectations for the contribution from cost savings, operational improvements and continued development of the company’s data and research offerings.

The group is also preparing for a leadership transition as it implements its next phase of operational changes.

Details of the incoming leadership arrangements were not provided in the supplied update.

YouGov’s priorities for FY2027 include continuing its Value Delivery Plan, expanding AI-enabled products, progressing the Shopper division’s strategic review and improving profitability.

The company will also focus on converting its Research division’s project pipeline into revenue while maintaining the performance of its Data Products business.

With annual revenue reaching £396.6 million, YouGov enters FY2027 targeting improved adjusted operating profitability following a year of investment, restructuring activity and mixed divisional performance.

About YouGov plc

YouGov plc is an international research and data analytics company providing market intelligence, consumer insights and research services to businesses and institutions.

The group operates across data products, customised research and shopper analytics, supporting clients with information about consumer behaviour, brand performance and market developments.

Its services include brand tracking, audience analysis, consumer research and strategic research projects.

YouGov uses its international research panels and data resources to collect and analyse information for clients across different industries and geographical markets.

The company is also developing AI-enabled research products, incorporating artificial intelligence into its analytical services and product development activities.

Its business model combines recurring data product revenue with customised research projects and other analytics services.

Diageo (LSE:DGE) has published restated historical regional financial results for the financial years ended 30 June 2025 and 30 June 2026, ahead of the introduction of a revised market and regional operating framework in FY2027.

The multinational spirits and beer producer said the updated financial information is available on its investor relations website and reflects changes to the way its business will be organised and reported under the new structure.

The restatement aligns historical regional financial disclosures with the operating framework scheduled to take effect during the financial year ending 30 June 2027.

By presenting the FY2025 and FY2026 figures using the revised regional structure, Diageo is providing investors and analysts with comparative information ahead of the transition.

The updated disclosures are intended to allow regional financial performance to be assessed on a consistent reporting basis once the new operating framework is implemented.

Diageo operates across multiple international markets, with its financial reporting reflecting the geographical organisation of its spirits and beer businesses.

Changes to regional reporting structures can affect how revenue, profitability and other financial measures are allocated and presented across operating segments.

The company’s latest publication provides historical information under the revised framework, allowing comparisons between previous financial periods and future results reported using the new structure.

The supplied announcement did not include the individual restated regional figures or specify changes to revenue and operating profit allocations between geographical segments.

It also did not indicate that the restatement involved changes to the group’s previously reported consolidated financial performance.

The publication forms part of Diageo’s preparations for the implementation of its new market and regional operating model in FY2027.

Under the revised framework, the company’s external financial reporting will reflect the updated organisation of its geographical markets and regional operations.

The restated information is intended to support the transition by establishing historical comparative figures for the reporting periods immediately preceding implementation.

Investors will be able to use the revised FY2025 and FY2026 regional data when assessing performance under the new framework, including comparisons with financial results published during FY2027.

Diageo has not provided additional details in the supplied update regarding the operational impact of the restructuring or any associated financial targets.

The company continues to operate its international portfolio of spirits and beer brands across markets in Europe, North America, Latin America, Africa and Asia.

The new reporting framework will change the presentation of regional financial information, with the restated historical results providing the comparative basis for subsequent disclosures.

About Diageo

Diageo is an international beverage alcohol company producing and distributing spirits and beer across nearly 180 countries.

The group’s portfolio includes Johnnie Walker, Crown Royal, Smirnoff, Ketel One, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Its products are sold across a range of categories and price segments, serving consumers through retail, hospitality and other distribution channels.

Diageo operates through an international network of production facilities, distribution arrangements and regional businesses, with activities spanning developed and emerging markets.

The company is listed on the London Stock Exchange under LSE:DGE and on the New York Stock Exchange under NYSE:DEO.

Its business activities include brand management, manufacturing, marketing and distribution, alongside initiatives relating to responsible alcohol consumption.

Diageo reports financial performance across its international operations and is introducing a revised regional operating and reporting framework from FY2027.

Marston’s (LSE:MARS) expects underlying profit before tax for the 52 weeks ended 26 September 2026 to exceed the upper end of market expectations, following an increase in operating margins and continued investment across its UK pub estate.

The hospitality group said the anticipated result would represent its third consecutive year of significant profit growth, with underlying profit now more than three times the level reported in FY2023.

Marston’s also expects its EBITDA margin to have increased by approximately 100 basis points during FY26, reflecting changes to its operating model and investment in its pub portfolio.

The company reported that recurring free cash flow had contributed to a reduction in leverage to approximately 4.2 times EBITDA, as it continued to manage debt alongside investment in its existing estate.

Following the improvement in cash generation and leverage, the board intends to introduce a shareholder returns programme through share buybacks.

The company did not disclose the proposed size or timetable of the buyback programme in the supplied update.

Marston’s has been implementing a programme of pub format conversions, with investment focused on adapting existing locations to different customer requirements and trading opportunities.

During FY26, the group completed 60 pub conversions, including sites adopting its Grandstand format.

The company reported that recent investments in its new pub formats generated sales increases of approximately 30%, with returns on invested capital exceeding 30%.

These figures relate to the performance of the format investments highlighted by management rather than the pub estate as a whole.

The Grandstand concept forms part of Marston’s strategy to develop its existing pub locations through changes to their operating formats and customer offerings.

Management said the results from these investments support plans to increase the pace of conversions during the next financial year.

Marston’s intends to complete at least 100 pub format conversions in FY27, compared with the 60 completed during FY26.

The planned programme represents an increase of at least 40 conversions, or approximately 67%, as the group expands the rollout across suitable locations in its estate.

The company expects these investments to contribute to future sales and profitability, although performance will depend on trading conditions and the results achieved at individual pubs.

Marston’s also reported stabilisation in like-for-like sales, alongside improvements in profitability associated with estate investment and operational changes.

The group has been focusing on developing its local pub portfolio while maintaining a combination of managed, franchised, tenanted and leased operating arrangements.

Its operating model is intended to support margins and cash generation through different management structures across the estate.

The expected increase in FY26 underlying profit before tax follows a period in which the company has prioritised operational efficiency, investment returns and debt reduction.

Management highlighted the contribution from its pub format programme, with the Grandstand concept among the formats generating increased sales following conversion.

The improvement in recurring free cash flow has also supported a reduction in the group’s leverage ratio, although debt remains equivalent to approximately 4.2 times EBITDA.

Marston’s plans to balance further investment in its estate with its proposed shareholder returns programme, subject to the board’s decisions on the timing and scale of repurchases.

The company’s immediate priorities include completing its FY26 reporting process, expanding the pub conversion programme and continuing to manage cash generation and leverage.

With at least 100 conversions planned for FY27, Marston’s is increasing investment activity across its existing portfolio while maintaining its focus on local pub operations.

About Marston’s PLC

Marston’s PLC is a UK hospitality company operating more than 1,300 pubs across the country.

The group manages a portfolio of local pubs through a combination of managed, franchised, tenanted and leased operating models.

Its business focuses on pub operations, customer hospitality and the development of its existing estate through investment in facilities, service offerings and operating formats.

Marston’s employs approximately 9,000 people and is listed on the London Stock Exchange under the ticker LSE:MARS.

The company has been implementing a programme of pub format conversions, including its Grandstand concept, as part of its strategy to improve trading performance and returns from its existing properties.

Its financial priorities include operating margin improvement, recurring free cash flow generation, debt reduction and investment in pub estate development.