22nd May 2014 09:19
LONDON (Alliance News) - Mitchells & Butlers PLC said Thursday total revenue rose 2.5% and pretax profit was flat in the half-year with the chain reporting a return to food volume growth as it continues to focus on its business transformation plan.
The UK pubs and restaurant operator said revenue rose 2.5% to GBP1.02 billion in the half-year, up from GBP991 million for the comparable period in 2013, as a result of growth in like-for-like sales as well as the contribution from new pubs and restaurants, said the firm.
Statutory pretax profit came in flat at GBP68 million. Excluding items and other adjustments, pretax profit increased to GBP77 million from GBP74 million.
In a statement for the 28 weeks to April 12, 2014, the FTSE 250-listed company said food sales increased by 2.7% and drink sales by 2.2% with total like-for-like sales up 1.1%. Whilst both food and drink sales were supported by price increases, food sales returned to volume growth of 0.2% in the first-half and drink volumes declined by 0.3%.
Mitchells & Butler noted that while the like-for-like sales increase slowed in the latter part of the period, the comparison in this period was impacted by Easter falling in the first-half of last year.
The Harvester and Toby Carvery pub-and-restaurant owner also said it has now reached agreement on the triennial valuation of the group pension schemes as at March 31, 2013. Due to lower real gilt rates and an increase in assumed longevity the funding shortfall as at the valuation date has increased to GBP572 million from GBP400 million for the March 2010 valuation.
Mitchells & Butlers said that following the agreement of the 2013 triennial pensions valuation and related recovery plan which "provides greater visibility and certainty over future funding and cash flow, at an affordable level," the Board will assess a return to paying dividends in the light of the full-year trading and cash flow generation.
"We are pleased with our trading performance in this first half, particularly the turnaround in volumes, alongside which we have made good progress against our key priorities, and continued to position Mitchells & Butlers for sustainable long-term future growth... Our business transformation is gaining momentum. Through our clearly laid-out strategy, we are well-placed to take advantage of the economic recovery across the UK," said Chief Executive Alistair Darby.
Shares in the pub and restaurant operator were trading 2.89% lower at 414.548 pence per share Thursday morning, one of the biggest fallers on the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
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