M&B reports profit boost in full year

Mitchells & Butlers has reported like-for-like sales rose 3.5% and total sales rose to £2,237m ((2018: £2,152m) in the year to 28 September. Profit before tax was up £47m to £177m.

Chief executive Phil Urban said, “These strong results reflect the work we have done over the last few years, first to build sustained sales growth and then to convert that into profit growth. It has been extremely encouraging to see an improvement in like-for-like sales growth across the portfolio during the year, fuelled by our Ignite programme of work. This puts us in a stronger position as we move forward into the next financial year, in what we expect to remain challenging market conditions.

He continued, “Our estate comprises 1,748 pubs, bars and restaurants, of which more than 80% are freehold or long-leasehold. Our focus in this area is to optimise the balance of brands across the estate in order to create long-term value. During the year, we continued to execute our plan focusing on improving the quality of the estate through premiumisation and amenity upgrades. We completed 240 remodels and conversions in FY 2019 (FY 2018 232) and remain on course to deliver a six to seven year cycle of investment, from the 11 to 12 year cycle of previous years. Ordinarily we expect a drag on profit in the year of investment due to lost trade during closure and the cost associated with opening the invested business.”



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