Pub giant welcomes ‘stronger city centres’ as it returns to profit

All Bar One is part of M&B's portfolio (Credit: Mitchells & Butlers)

Pub giant Mitchells & Butler (M&B) has returned to profit and is confident it is “well-positioned” to deal with the economic challenges ahead.

In the last 10 weeks it has seen sales growth of 6.5% and the group has seen “city centres becoming stronger and guests across the country becoming ever more confident to return to the hospitality sector”.

The group employs 46,000 people across its portfolio of more than a dozen brands, including Harvester, Toby Carvery, All Bar One, and Miller & Carter.

M&B has reported an adjusted pre-tax profit of £124m in the year to September 24, although impairments in the valuation of the property portfolio dragged the statutory profit figure down to £8m.

However, this was still a marked improvement on losses of £42m and £123m during the two pandemic-hit years.

M&B’s chief executive Phil Urban said: “The trading environment remains highly challenging, with cost inflation continuing to put pressure on margins and we are ever mindful of the pressures that the UK consumer is facing.

“However, we are encouraged by the strength of sales growth at the end of last financial year which has improved further into the early weeks of this year.”

M&B’s business transformation programme, Ignite, is delivering change throughout the group. More than 40 initiatives are being developed, focused on improving efficiency and productivity.

They include an auto-scheduling project to create team rosters, energy reduction projects such as the installation of voltage optimisers and a trial of internet-connected control devices to lower electricity and gas consumption.

Urban added: “We remain focused on the delivery of our Ignite programme with existing and new initiatives driving cost efficiencies and increased sales, alongside our capital investment programme.

“Combined with our diverse portfolio of well-known brands, value proposition, strong estate locations and talented people, we are well positioned to face both the challenges and opportunities ahead.”

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