Pub groups hopeful customers and profits will return

Two major pub groups based in the West Midlands are seeing their glasses as being half-full despite recording huge operating losses during lockdown.

Pubs and restaurants have been able to serve customers indoor for the first time in months since Monday, and the sector is hopeful this will be a permanent return after 14 months of uncertainty and closures.

Mitchells & Butler made a pre-tax loss of £200m in the first half of the year, a 28-week period which had only 14 weeks of restricted trading allowed.

Chief executive Phil Urban said: “M&B was a high performing business coming into the pandemic. 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.”

Marston’s, in its 26-week reporting period, made a pre-tax loss of £106m, although its balance sheet was shored up by a joint venture deal for its brewing business which is now part of the Carlsberg Marston’s Brewing Company.

Ralph Findlay, who is standing down as Marston’s chief executive later this year, said: “Despite the challenges of the last year, the actions we have taken have ensured that Marston’s has emerged a stronger and more focused business with a substantially strengthened balance sheet, a 40% stake in Carlsberg Marston’s Brewing Company and a clear vision for the future.

“This is my last set of results as chief executive officer and I am confident that the business is in an excellent position to execute its strategy and deliver a return to growth as the country recovers from the pandemic.”