25th Sep 2014 07:00
LONDON (Alliance News) - UK pubs and restaurant operator Mitchells & Butlers PLC Thursday said total sales in the 51 weeks of its financial year grew by 3.8%, helped by better food and drink sales, but said that after strong demand in July following the World Cup, trading conditions in August slumped.
In a pre-close trading update, the company known for brands including Harvester, Toby Carvery and O'Neill's bar, said like-for-like sales in the 51 weeks to September 20 were up 0.6%, however it said growth in the nine weeks to September 20 was minimal, up only 0.1% as food sales grew by 0.1% and drink sales declined by 0.2%.
The company's 52 week financial year runs until the end of September.
"Having seen an improvement in demand in July following the World Cup, trading conditions during August were difficult in the pub market, as consumers remained cautious about spending and rainfall was significantly higher than last year," the company said in its statement.
The company said its margins remain below last year due to lower levels of sales and spend per head, as it moderates its price increases to drive volume back into its sites.
Mitchells & Butlers said it continued to accelerate its remodel programme and invest in its IT infrastructure during the period, to help improve its volume performance.
"As a result, we are confident in the strong platform we are building from which to grow momentum as we move into 2015," the company said.
Earlier this year, Mitchells & Butlers acquired 173 outlets from pub and restaurant operator Orchid Group for GBP266 million in cash.
The company said Thursday that Orchid continues to trade well and in line with its expectations. It said its investment plans are progressing and is on track to have converted the first few sites to its brands before Christmas.
"Despite a difficult trading period in the last quarter, the transformation of our business is well on track. Coupled with the successful integration of the Orchid estate, this gives us confidence in our future growth prospects," said Chief Executive Alistair Darby in the company's statement Thursday.
As well as the Orchid acquisitions, the group opened 22 new sites and converted or expanded nine site this year.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Mitchells & Butlers