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Mitchells & Butlers returns to profit growth

By Frank Prenesti

Date: Thursday 23 May 2019

Mitchells & Butlers returns to profit growth

(Sharecast News) - A snow-free winter helped pub and restaurant operator Mitchell & Butlers posted a return to profit growth in the first half, but the company warned of "limited visibility" ahead due to Brexit uncertainty.
Adjusted profit rose by £10m to £151m, while revenue was up 5% to £1.18bn as like-for-like sales increased 4.1% in the first half and by 3.8% in the 33 weeks to May 18, which includes the movement of Easter into the second half, the company said.

Pre-tax profit came in at £75m from £69m a year earlier.

"We continue to closely monitor Brexit developments and have been working to develop a contingency plan alongside our main supply chain partners, including the provision of additional storage facilities," the company said.

"Should a no deal scenario take place we believe these actions will help mitigate and reduce the potential disruption."

The company, which operates more than 1,800 pubs, bars and restaurants and owns brands such as All Bar One, Harvester and Toby Carvery said uncertainty and oversupply into the casual dining market, had "resulted in a number of casualties in the industry".

"As a result, supply has started to decrease with managed restaurant numbers reducing for the first time this decade, by 1.1% in the year to March," it said.

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