Pub chain operator says margins are sliding due to increased cost pressures
Companies: Mitchells & Butlers plc
British pub chain Mitchells and Butlers Plc has reported decent Christmas trading figures in its first update of 2017, saying like-for-like sales grew 1.7% for the year and 4.7% during the four weeks to 7 January.
Shares in M&B, who own and operate several well-known pub brands like All Bar One and Harvester, jumped 5% as the market opened.
It wasn't all good news, as M&B reiterated its warning that margins are sliding and will continue to fall this year as cost pressures increased, but the firm made no mention of the EU-referendum vote in its update.
The group has been investing considerable capital in updating its assets, opening one new site and completing 69 conversions during the financial year. Management says they expect to complete roughly 300 conversions in FY17.