Mitchells & Butlers reports pre-tax loss in first-half trading; 'encouraged' by sales at re-opened German business

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Pub group Mitchells & Butlers has announced a pre-tax loss of £121m for the half year, on revenue of £1.04bn, as the lockdown took effect towards the end of the period as it prepares to re-open English sites.

In its half-year results for the 28 weeks to 11 April 2020, including nearly four weeks of mandated closure due to COVID-19, the company reported that total revenue of £1.04bn was 12.4% lower than last year due to the government directive to close all sites on 20 March.

In its last full week of trading before closure to 14 March, like-for-like sales grew by 0.9%, with food sales up by 1.3% and drink sales up by 0.3%. Adjusted operating profit of £108m during the period was 28.5% lower than last year.

At the end of the period, the total estate comprised 1,745 sites in the UK and Germany, of which 1,674 are directly managed.

The group said its German business, Alex, re-opened from mid to late May, and that it has been 'encouraged' that sales levels have grown each week since re-opening.

Mitchells & Butler said it is working towards an early July date for English sites to re-open, with Wales and Scotland following over the next two weeks.

Chief executive Phil Urban said: 'The business was performing very well before the enforced closure in response to COVID-19, building on the strengths of our estate of mainly freehold properties, our diversified and well-loved brands and our team's industry leading operational skills.'

He added that its assets, coupled with the company's early experience of opening up in Germany, give it a 'clear plan for re-opening'.