Pub and restaurant operator Mitchells & Butlers this morning reported that full-year sales rose almost 7% to £2.1 billion and hailed “strong” earnings growth of 9.5%.
On a like-for-like basis the revenue increase was less impressive, with the firm managing an improvement of just 0.8%.
Meanwhile, pre-tax profits rose by £3m to £126m, while the company’s capital expenditure totalled £162m – the same as the previous 12 months. The investment saw it open 14 new sites and complete 51 conversions.
The company said that the integration of the Orchid pub business remained on track, with 41 conversions performing well and the closure of head office completed.
Phil Urban, who joined as COO at the start of the year but took over from Alistair Darby as chief executive in September, said: “Since joining Mitchells & Butlers in January I have seen first-hand the potential within the business. The market remains highly competitive but I have identified our key priorities to realise that potential.”
He added: “We will build a more balanced business; instil a more commercial culture; and increase the pace of execution and innovation. We are confident that with this approach we will drive sustained profit growth and enhanced shareholder returns.”
Mitchells & Butlers’ portfolio of brands and formats includes Harvester, Toby Carvery, Country Pubs, Sizzling Pubs, Crown Carveries, Oak Tree Pubs, All Bar One, Browns, Miller & Carter, Castle, Alex, Nicholson’s, O’Neill’s and Ember Inns.
The group serves around 140 million meals and 430 million drinks each year and is one of the largest operators within the UK’s £80 billion eating and drinking out market.