Pub group falls dramatically into the red as lockdown measures bite
Birmingham pubco Mitchells & Butlers has seen revenues slump dramatically and profits wiped out as it reports its full-year results.
In the 52 weeks to September 26, the firm saw turnover decline by over 34% to £1.48bn, while it lurched dramatically into the red, posting a loss before tax of £123m. Last year Mitchells & Butlers made a profits of £177m.
Meanwhile, a review of its pub estate carried out in September has seen a £208m decrease in book value.
Despite this, the company says it is “well positioned” to benefit from any easing of restrictions, but much will depend on today’s announcement on which areas of the country will be placed into which tier.
Phil Urban, chief executive, said: “Throughout a very uncertain and challenging year our businesses and teams have adapted quickly, creating a safe environment for guests and putting us in a strong position to benefit when consumers are able to eat out again. We saw direct evidence of this from a strong trading period in July and August before further restrictions came into force.
“With our great estate, balanced portfolio of brands and proven management team, we remain optimistic that we will be able to regain the momentum previously built and continue to achieve sustained market outperformance, when the current operating restrictions are eased.”