Mitchells & Butlers losses widen as Covid shutters outlets

Pre-tax losses for the six months to April 10 came in at £200m, compared to a loss of £121m a year ago. Revenue plummeted 79% to £219m.

The company said almost all of its sites were now open, trading indoors and outdoors after the government on Monday lifted restrictions on the hospitality sector despite the rising number of India-variant cases in the UK.

It said the pandemic had “dominated” the first half, with only 14 weeks of restricted trading permitted. Like-for-like sales were restricted to a decline of 30.1% against pre Covid-19 levels.

“With the support of our main stakeholders, we are now well placed to emerge in a strong competitive position and look forward to the removal of remaining trading restrictions in June such that the business is able to return again to full and sustainable profitability,” chief executive Phil Urban said.

“Whilst uncertainty and challenges still remain, we are encouraged by the successful roll out of the Covid-19 vaccination programme and the fall in infection rates and are confident, given the demand that we have seen so far since re-openings, that we will see strong consumer confidence in our brands supporting a rebound to profitability and cash generation once restrictions are fully eased. Until that time, we continue to believe it is not meaningful to provide any forward guidance.”