Mitchells & Butlers back in the black with £8m profit
Mitchells & Butlers returned to the black this year, recording a pre-tax profit of £8m compared to a £42m loss the prior year.
For the 52 weeks to 24 September 2022, the group – which operates 1,700 pubs and restaurants under brands including Harvester, Toby Carvery, All Bar One, and Miller & Carter – recorded total revenue of £2.2b, more than double its 2021 revenues.
The company said it had seen like-for-like sales growth for the year of 1.1% against 2019 and profits broadly recovered to pre-Covid-19 levels.
The business also reported an "encouraging start" to the new year with like-for-like sales growth of 6.5% against 2022 in the 10 weeks since the end of the financial year – and 9.2% growth against 2019.
However, Mitchells & Butlers warned the trading environment remained "very challenging" and energy costs were "uncertain" despite the government's Energy Price Guarantee.
It has introduced initiatives to save energy including installing voltage optimisers to cut electricity use and using chemical additives in heating systems to reduce gas consumption.
Mitchells & Butlers remodelled 160 sites this year and began trialling the Browns brand in suburban locations outside its usual high street base. The first trial site opened in August, which the group said was "performing well", and a second opened in December.
The company employs over 46,000 people and said staffing numbers had recovered to pre-pandemic levels in the second half of the year. It is looking to recruit a further 1,000 new apprentices.
Mitchells and Butlers chief executive Phil Urban said: "The trading environment remains highly challenging, with cost inflation continuing to put pressure on margins and we are ever mindful of the pressures that the UK consumer is facing. However, we are encouraged by the strength of sales growth at the end of last financial year which has improved further into the early weeks of this year.
"Combined with our diverse portfolio of well-known brands, value proposition, strong estate locations and talented people, we are well positioned to face both the challenges and opportunities ahead."
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