Poor weather and weak consumer conditions have hit most pub companies and Mitchells & Butlers (MAB) is no exception. Half-year like-for-like sales growth reached just 0.3 per cent year-on-year while, adjust for 2012's exceptional items - which included costs associated with a bid approach by Piedmont - and operating profit rose a modest 5 per cent to £145m.
Mitchells has ruled out significant portfolio expansion in favour of self-help - by cutting its central costs by £10m and improving the returns from its estate. That programme, however, seems to be maturing. It spent £44m sprucing up pubs in the period, some £31m less than this time last year, while delivering the promised savings from updating its IT systems and reducing management costs. Expansion spending (adding new pubs) reached just £30m, although management expects spending to return to £50m-£80m annually in the medium term. Still, Mitchells' food sales rose 4.5 per cent and now generate 51 per cent of total sales at its 1,600 pub estate. While trading in the five weeks since the period ended has picked-up, with like-for-like sales having risen 1 per cent.