24th Sep 2020 08:56
(Alliance News) - Mitchells & Butlers on Thursday said its pub chain is "well placed" to cope with further restrictions on operations in the UK.
Since re-opening, the pub, bar and restaurant operator said it has continued to outperform the market. In July, like-for-like sales declined by 32%, hit by reduced capacity. During August, however, the government's 'Eat Out to Help Out' scheme helped return the business to like-for-like sales growth, of 1.4%.
Subsequent trading in the first three weeks of September has settled "slightly below this" at a like-for-like sales decline of 6.4%, prior to the introduction of a 10pm pub curfew in England from Thursday onwards.
Total sales over the year to date have declined by 35.4% due to the closure period.
"The future remains both challenging and uncertain, with only this week a curfew and other additional restrictions being imposed on how and when we can operate. However, we believe we are well placed to meet that challenge and to keep Mitchells & Butlers at the forefront of the eating and drinking-out market," said Chief Executive Phil Urban.
The company currently has unsecured cash balances of approximately GBP100.0 million in addition to undrawn committed unsecured facilities of around GBP140.0 million
"Before the closure of the estate, we had completed 168 investment projects including two acquisitions," Mitchell's & Butlers said. "The investment programme was suspended in March and resumption will be considered through continuous review of operational performance and cash flow management."
Mitchells & Butlers shares were down 3.7% at 131.00 pence each on Thursday morning in London.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Mitchells & Butlers