M&B set to deliver on-target results despite disappointing Q4
BIRMINGHAM-based pubco Mitchells & Butlers has said it expects to deliver full year results in line with the board expectations after a period of sustained sales growth.
In a pre-close update, the company said sales growth in the first 51 weeks of the year had been 2.1%. Group operating margin has remained ahead of last year throughout the second half and it said at it had also maintained its investment into its guest-facing service and amenities.
Performance would have been better but for a disappointing fourth quarter.
The year has seen the group, the UK’s largest operator of managed restaurants and pubs, open 16 new sites and convert or expand six sites. It said the development pipeline for new sites for FY14 and FY15 was progressing well and it expected to increase investment into its most successful brands to open around 50 new sites a year over the medium term.
Like-for-like sales were lower in the fourth quarter against a strong comparative performance last year (+3.0%). In the 51 weeks to September 21, 2013 total sales grew 0.4%, the gains having been impacted by the fourth quarter performance which saw sales dip 1%. For the 51 weeks, food sales were up by 0.8% but drinks revenues fell 0.3%.
Alistair Darby, M&B chief executive, said: “I am pleased with the progress we have made this year, while continuing to make the changes needed to position the business for the future.
“Based on detailed consumer insight, we have focused our brands on delivering improved performance across a small number of priority areas. These include further improvements in team engagement, operational practices and guest service, which will deliver the next stage of growth.”
The M&B portfolio includes: Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Village Pub & Kitchen, Sizzling Pubs, All Bar One, Browns, Miller & Carter, Castle, Alex, Nicholson’s, O’Neill’s, Oak Tree Pubs and Ember Inns.
It serves around 130m meals and 410m drinks each year and is one of the largest operators within the UK’s £75bn eating and drinking out market.
