M&B sees first half revenue top £1bn

BIRMINGHAM pubco Mitchells & Butlers (M&B) has announced a first half revenue figure of £1,016m on the back of volume growth in the food part of its operation.

And the firm has announced that it has resolved pensions issues with its trustees which gives it more certainty moving forward.

The deficit increased to £572m as at March 2013 and its annual contribution has increased to £45m (previously £40m per annum). 

Reporting its half year results for the 28 weeks ended April 12, the firm revealed total revenue was up by 2.4% compared to the same period last year.

However profit before tax was flat, unchanged from H1 2013 at £68m.

M&B said it experienced like-for-like sales growth of 1.1%.

Capital expenditure increased to £86m (H1 2013: £59m), which included 11 new site openings and four conversions.

Alistair Darby, chief executive, said: “We are pleased with our trading performance in this first half, particularly the turnaround in volumes, alongside which we have made good progress against our key priorities, and continued to position Mitchells & Butlers for sustainable long-term future growth.
 
“Successful resolution of the recent triennial pensions valuation, which we are announcing today, provides greater visibility and certainty over future funding and cash flow, at an affordable level.
 
“Our business transformation is gaining momentum.  Through our clearly laid-out strategy, we are well-placed to take advantage of the economic recovery across the UK.”