M&B profits up despite lack of Olympic ‘bounce’

BIRMINGHAM-based pubco Mitchells & Butlers has seen a pick up in sales in recent weeks.

The firm has recorded 3% like-for-like sales growth in the nine weeks to September 15 and 2.1% in the year to date.

M&B says there was little discernible impact on sales overall from the Olympic and Paralympic Games, although some businesses located near Games venues did benefit.

The firm says operating margins are showing progress from the half year as anticipated, however full year margins are still expected to be slightly behind last year as a result of inflationary cost increases together with an increased investment in service in its restaurants and pubs.

Executive chairman Bob Ivell said: “Trading has held up well over the summer despite the generally adverse weather. Our business transformation programme remains on track, driving a sharp focus on enhanced guest service and increased cost efficiency.

“We look forward to welcoming Alistair Darby next month as chief executive and working with him to continue to grow the business, whilst seeking to further strengthen the board with the appointment of independent non-executive directors.”