Hospitality giant with Gloucestershire outlets posts increase in revenue and profit
By James Young | 20th November 2019
Hospitality giants Mitchells and Butlers have reported a "strong" year of sales and profit growth in their annual results, causing their shares to jump in early trading on Wednesday morning.
The firm who run pub and restaurant brands like Harvester, Toby Carvery, All Bar One and O'Neills saw like-for-like sales grow by 3.5 per cent.
Total revenues across the group for the year to September 28 2019 grew to £2.237billion, up from £2.152billion in the previous 12 months.
In the statement released with the results, the company said: "This has been a strong year for Mitchells & Butlers.
"The work we have undertaken, principally through our Ignite programme of initiatives, is driving a strong trading performance and generating profit growth whilst we continue to invest in our estate and pay down debt.
"Total sales grew by 3.9 per cent over the year. Adjusted operating profit of £317m grew by £14m against last year.
"Ignite initiatives focusing on sales and efficiency enhancements have resulted in adjusted operating margin growth of 0.1ppts, despite the inflationary cost headwinds which continue to impact our sector.
"On a statutory basis, profit before tax of £177m grew by 36.2% against last year.
Phil Urban, Chief Executive, said:"These strong results reflect the work we have d
one over the last few years, first to build sustained sales growth and then to convert that into profit growth.
"It has been extremely encouraging to see an improvement in like-for-like sales growth across the portfolio during the year, fuelled by our Ignite programme of work.
"This puts us in a stronger position as we move forward into the next financial year, in what we expect to remain challenging market conditions."
Shares in Mitchell and Butlers rose by around six per cent at the start of trading this morning, immediately after the announcement of the results.
Mitchell and Butlers have more than 1,700 outlets across the country.
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