Mitchells & Butlers posts full-year loss as like-for-like sales decline in 'uncertain' year

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Pub group Mitchells & Butlers has reported a pre-tax loss for the year of £123 million, while total revenue and operating profit declined as a result of an 'uncertain and challenging year'.

Total revenue fell by 34.1% to £1,475 million in the 52 weeks to 26 September 2020, down from £2,237 million in the full year 2019.

The group announced full-year operating profit of £8 million, compared to £297 million a year earlier.

In its results, Mitchells & Butlers reported that adjusted operating profit of £99 million declined by 68.8% and a statutory loss before tax of £123 million was recognised for the period.

Like-for-like sales over the period were down by 3.5%, 'with a strong start to the year superseded by the subsequent impact of a prolonged period of enforced closure and social distancing restrictions'.

The company reported that prior to Covid-19 it had a 'strong start to FY 2020, with particularly good growth over the festive period' and that like-for-like sales growth had remained consistently ahead of the market.

Chief executive Phil Urban said: 'Throughout a very uncertain and challenging year our businesses and teams have adapted quickly, creating a safe environment for guests and putting us in a strong position to benefit when consumers are able to eat out again.

'We saw direct evidence of this from a strong trading period in July and August before further restrictions came into force.'