Pubs group Mitchells & Butlers (M&B) today reported a 3.8 per cent increase in full-year profits but said it would come under pressure from higher prices and regulatory costs in the year ahead.
The owner of the All Bar One, Harvester and Toby Carvery chains said pre-tax profits rose to £162 million in the year to 22 September, up from £156m a year earlier, on revenues 3.3 per cent higher at £1.86 billion.
Like-for-like sales were up 2.1 per cent, driven by higher food sales – the group said around 75 per cent of its turnover is generated by customers who eat out at its restaurants and pubs.
Greg Johnson, analyst at Shore Capital Stockbrokers, said: “M&B retains one of the best pub estates in the country and has margin recovery potential. However, we see little in these results to get excited with better value elsewhere.”
M&B chairman Bob Ivell said trading conditions are expected to remain challenging in the coming year.
He added: “Further inflationary and regulatory cost pressures will impact the business in the new financial year, with ongoing alcohol duty increases, further food price inflation and other cost increases, coupled with continued tightness in consumer incomes.”