Mitchells & Butlers PLC Pre-Close Trading Update (5008K)

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RNS Number : 5008K

Mitchells & Butlers PLC

22 September 2016

22 September 2016

Mitchells & Butlers plc

Pre-close Trading Update

Like-for-like sales increased by 1.8% in the most recent 8 weeks, representing a continuation of the improved trend both over time and relative to the total eating-out market(1) , supported by favourable weather in recent weeks. We continue to generate good sales growth from our invested sites, now starting to be underpinned by relative improvement in the performance of sites without recent investment.

Total sales in the first 51 weeks of the financial year fell by 0.8%.

 
 Like-for-like 
  sales 
                  28 weeks    15 weeks      8 weeks        51 weeks 
                      to         to            to              to 
                   10 April    23 July    17 September    17 September 
                     2016       2016          2016            2016 
                 ----------  ---------  --------------  -------------- 
 Food              (2.0%)      (1.5%)        0.4%           (1.4%) 
 Drink             (1.5%)       0.2%         3.7%           (0.1%) 
 
 Total             (1.6%)      (0.7%)        1.8%           (0.8%) 
 

Margins for the full year will be below last year, as previously advised, particularly as a result of acceleration of investment in the estate and wage inflation following the introduction of the National Living Wage in the second half.

So far this financial year we have converted or remodelled 244 sites, and opened 7 new sites.

Phil Urban, Chief Executive, commented:

"We are encouraged by our improved trading performance in recent months. Weather in recent weeks has certainly been helpful to sales, but in addition we are starting to benefit from increased investment activity, instilling a commercial culture and a faster pace of execution and innovation in our business.

We enter the new financial year facing an increasing number of cost headwinds, most notably labour. However, based on recent progress we remain committed to our strategy going forward."

Note: (1) Coffer Peach Business Tracker

For further information, please contact:

 
                                      [phone] 
 Tim Jones - Finance Director          6112 
                                      [phone] 
 James Cooper - Investor Relations     4525 
                                      [phone] 
 James Murgatroyd (Finsbury)           3801 
 

Notes for editors:

 
 -   Mitchells & Butlers is a leading operator of 
      managed restaurants and pubs. Its strong portfolio 
      of brands and formats includes Harvester, Toby 
      Carvery, All Bar One, Miller & Carter, Premium 
      Country Pubs, Sizzling Pubs, Crown Carveries, 
      Vintage Inns, Browns, Castle, Nicholson's, O'Neill's 
      and Ember Inns. In addition, it operates Innkeeper's 
      Lodge hotels in the UK and Alex restaurants and 
      bars in Germany. Further details are available 
      at www.mbplc.com and supporting photography can 
      be downloaded at www.mbplc.com/imagelibrary . 
 -   Mitchells & Butlers serves around 140 million 
      meals and 430 million drinks each year and is 
      one of the largest operators within the UK's 
      GBP80 billion eating and drinking out market. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 22, 2016 02:00 ET (06:00 GMT)