Bad weather slows sales at Mitchells & Butlers
Pub and casual-dining giant Mitchells & Butlers (M&B) has reported a slowdown in sales, saying the recent run of bad weather has hit trade.
In a trading update this morning, the company behind the Harvester, Toby Carvery, Vintage Inns, and Nicholson's brands said like-for-like sales growth nearly ground to a halt.
Sales growth for the 11 weeks to 7 April was 0.2%, compared with 4.4% in the 17 weeks to 21 January, while underlying pre-tax profits fell 8% to £68m in the 28 weeks to 7 April.
Taking the two quarters together, sales were up 2.7%, with food sales 3.4% higher and drink sales up by 2.2%.
M&B said the heavy rainfall had seen a further slowdown in sales in the weeks running up to 12 May, which hit both food and drink at its 1,600 UK sites.
Exceptional items included a £6m charge for fighting off a bid approach last year from Piedmont, and a $14m charge for an internal restructuring and IT reorganisation which the company says should result in a £10m of annualised savings.
Executive chairman Bob Ivell (pictured) said: "We have remained firmly on the front foot with a relentless focus on actions that will drive the medium and long-term success of the business."
Ivell went on to say that he was pleased with the progress being made to appoint a new chief executive. He is in temporary charge after Jeremy Blood and Adam Fowle left in quick succession. The company also lost its chairman, Simon Burke, last year.
"Despite challenging trading conditions, we remain confident that we can deliver a full-year result in line with expectations," he added.
M&B opened 35 new sites in the first half, creating more than 1,200 new jobs, and converted seven existing sites, completing its current conversion programme. It remains on track to open around 55 new or converted sites in the current financial year.
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By Janie Manzoori-Stamford
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