Mitchells & Butlers profit nudges up as it reinstates dividend

For the year ended 26 September, pre-tax profit nudged up to £126m from £123m in 2014 as total revenue rose 6.6% to £2.1bn.

In addition, the company said it was reinstating its dividend – having not paid one last year – declaring a 4p per share final dividend.

However, Mitchells said sales in the first eight weeks of the year have been soft, with total sales down 1.3% and like-for-like sales 1.6% lower, reflecting an increasingly competitive market.

The company attributed the softer start to poor weather over the summer, which meant beer gardens did not see the benefit of any sustained period of sunshine.

Chief executive Phil Urban said: “The market remains highly competitive but I have identified our key priorities to realise that potential. We will build a more balanced business; instil a more commercial culture; and increase the pace of execution and innovation.

“We are confident that with this approach we will drive sustained profit growth and enhanced shareholder returns.”

At 0920 GMT, M&B shares were up 1.8% to 353.20p.