Mitchells & Butlers (M&B), the managed pub and restaurant group, has this morning unveiled like-for-like sales growth of 1.7% in the eight weeks to 11 July.
Announcing its third quarter interim management statement, the company said like-for-like sales growth was 3.1% at its residential pubs, which represent 77% of sales, but -1.4% at its town centre venues.
The 2,000-strong group said this performance split partly reflected the good weather during the period – which had benefited local pubs but adversely impacted high street outlets – as well as continued pressure on late-night venues generally.
Overall like-for-like sales for the 41 weeks to 11 July were up 1.3%. The comparison included 93% of the estate.
The operator of formats such as All Bar One, Harvester and Toby said net operating margins had improved at the start of the second half of its year versus the first half as a result of lower cost inflation, plus continued productivity improvements.
M&B said that its search for a new chief executive following the departure of Tim Clarke was “progressing well”.
The group said it had appointed a non-executive director from Piedmont, the investment vehicle of Joe Lewis, which owns 22.9% of the company.
Richard McGuire, a former managing director in investment banking, at Citigroup, will be one of two non-executive board seats Piedmont is entitled to – all the while its shareholding remains above 22%. M&B said Piedmont would be entitled to one seat on the board should its holding fall below 22% but remain above an agreed floor of 16%.
On financing, M&B said it had reduced its drawings on a £550m unsecured banking facility to £432m, on the back of cashflows and £60m of disposals in the year to date. It expected net debt to reduce further by the year end and planned to reduce the ceiling on the facility to £475m.
M&B concluded: “The outlook for consumer spending, and in particular unemployment, remains uncertain.
“Against this background, Mitchells & Butlers' leading brands and formats, high quality estate and its value for money offers enable the Company to be well positioned to deliver a continuing robust trading performance.
“As a result the Board still expects profit for the year to be in line with consensus market expectations.”
Analysts are predicting full-year pre-tax profits of £121m.
