Mitchells & Butlers swings to FY profit, sees 5% cost rise
UK pub and restaurants group Mitchells & Butlers posted better-than-expected annual profits and said like-for-like trading in the first seven weeks of the current fiscal year was up 4%.
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The company returned to profit with pre-tax earnings for the year to September coming in at £199m compared with a loss of £13m last year.
Revenue ticked up to £2.6bn from £2.5bn despite a tough trading environment as more customers chose to stay in to avoid elevated bar and food prices.
M&B said it expected £100m in extra costs due to increases in the National Living Wage and higher national insurance contributions introduced in last month’s Budget, offset by lower inflation and energy bills.
“Notwithstanding future cost increases we feel that the business is in very good shape. Our balance sheet continues to strengthen, with reduced debt and a substantially de-risked pension surplus, and we expect to out-perform the market driving further profit growth in the year ahead,” the company said.
Reporting by Frank Prenesti for Sharecast.com