Leading analyst Geof Collyer has predicted a 10% fall in full-year revenues for Mitchells & Butlers (M&B), the managed pub operator, with ebita down 8%. Collyer, of Deutsche Bank, has issued a Hold recommendation for M&B with a target price of 300p ahead of its FY2011 results on 22 November. Collyer forecasts M&B’s full-year revenues to fall 10% to £1.7821bn, with ebita down 8% to £295.5m and PBTA down 7% to £156.4m. Ebitda margin is to increase 0.32% to 16.58%, Collyer predicted, and earnings per share will fall 6% to 27.9p. He said: “The theme of this year’s pubs & restaurants sector (and going into next) is that the stocks have generally produced good lfl sales, comfortably outperforming the general retail sector lfls in 2011. But there has been a varying ability to cope with input cost inflation. “On a reported basis, there should be margin gains for the year, with H2 growth more than offsetting out an H1 decline. On an underlying basis (stripping out the impact of last year’s disposals), cost pressures took their toll in H1, as has the structural impact of food sales growth running at 5x the pace of wet sales for the year. “M&B also cited increased promotional activity and initial costs of the brand rollout programme, but these are self-inflicted, and companies seldom highlight a lack of these costs when profits are turning up.” Collyer said M&B “may still feel pressure” from Piedmont, Joe Lewis’ investment vehicle that last month abandoned its bid for the company, “and so any decision to reinstate dividends may well be delayed until cash flows improve next year”. “After yet another year of boardroom upheaval, we think the group could use more managerial stability.”