26th Nov 2013 09:21
LONDON (Alliance News) - Harvester and Toby Carvery pub-and-restaurant owner Mitchells & Butlers PLC Tuesday reported a jump in profits for the 52 weeks ended September 28, boosted by new site openings and stronger food sales as it upped its prices.
The UK operator of managed pubs and restaurants, whose other brands include All Bar One and O'Neill's, said that it remains cautious about the strength of economic recovery in the new financial year, but said that sales in the first eight weeks are up 0.1% on a like-for-like basis.
Mitchells & Butlers reported a pretax profit of GBP150 million, up from GBP83 million a year earlier. It reported a net profit of GBP135 million for the year.
The group reported basic earnings per share of 32.9 pence, up considerably from 17.1 pence per share a year earlier, due to higher sales, improved operating margins and lower interest charges.
The group reported only marginally higher revenue for the year, of GBP1.90 billion, compared with GBP1.89 billion a year earlier, driven by food sales growth of 3.3% but drink sales growth of just 1%.
It said that food sales now account for more than half of total sales.
On a like-for-like basis, food sales were driven by price increases and an increase in spend per customer, although volumes were lower in both food and drink categories.
It said that second half of the year saw stronger drink sales growth, boosted by a hotter British summer.
Mitchells & Butlers said that its programme for new checkout tills, payment systems, table management, and kitchen management systems are now in full roll out.
The group said that it opened 16 new sites during the financial year, as it invests in its most successful brands going forward by opening around 50 new sites a year over the medium term.
Overall portfolio value has increased by GBP31 million, the company said.
The company didn't pay a dividend again. It said it is "mindful of the attraction of the resumption of dividend payments and will continue to monitor anticipated net cash flow generation, before taking a decision on timing and quantum."
Shares in Mitchells & Butlers were up 7.5% Tuesday morning, trading at 420.40 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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