Mitchells & Butlers hails robust 2009 performance despite profit fall
Pub firm Mitchells & Butlers has hailed a "robust" performance in 2009, despite seeing its pre-tax profit fall by almost 24% to £134m.
Revenue at the company, which counts All Bar One, O'Neill's and Scream among its brands, was up to £1.96b for the year to 26 September 2009, compared to £1.91b the previous year.
The firm's pubs and bars division saw revenue increase by 0.4% to £958m, although operating profit fell almost 10% to £159m. Revenue at its restaurants division climbed 6.4% to £999m. Once again, operating profit fell almost 10% to £141m.
Meanwhile the company indicated that total like-for-like sales had risen an average of 1.6% with like-for-like food and drink sales up 3.1% and 1.8% respectively.
But the company admitted it had been hit by an "abnormal level of cost increases", particularly in the first half of the year, as it battled with £30m of additional regulatory costs related to the National Minimum Wage, holiday pay, business rates and exceptional duty increases.
An additional £24m of food and energy costs also contributed to the lower profit figure.
Chief executive Adam Fowle said: "The company has sold 129 million meals in the year and grown average food sales per pub by 9%. The second half trend in net profit margin recovery continues. The first eight weeks of the new financial year have started well and the strength of the Group's brands, locations, operational skills and cost management mean that we are well positioned for the year ahead."
Mitchells & Butlers added a "small upturn" in consumer confidence at the start of its new financial year had had a positive impact on trading, with total like-for-like sales for the first 8 weeks of the year up 3.2%, against the 52 weeks to 26 September 2009.
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By Neil Gerrard
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