Shareholders of Mitchells & Butlers plc (LON: MAB) have seen shares spike on Wednesday morning after the firm reported strong profit growth in financial 2019.

Shares of the FTSE250 (INDEXFTSE: MCX) listed firm spiked 5.94% on Wednesday to 472p. 20/11/19 10:39BST.

The firm reported strong growth in financial 2019, with an increase in profit deduced to rising sales in a tough environment.

The results will be pleasing for the firm, as rivals have had mixed experiences in the uncertain market conditions.

Competitors such as Greene King (LON: GNK) and Whitbread (LON: WTB) have been hit headlines of slowing business and takeover bids, and this performance shows that Mitchells and Butlers seem to be handling matters well.

However, headliner JD Wetherspoon (LON: JDW) reported strong profits in their third quarter, which may create stiff competition for Mitchells and Butlers.

In the 52 weeks to September 28, Mitchells & Butlers recorded £177 million in pretax profit, 36% higher than the £130 million reported the year before.

Revenue grew 4.2% year on year to £2.24 billion from £2.15 billion, with total sales up 3.9%.

Total like-for-like sales grew by 3.5%, with strong performances across all of Mitchells & Butlers brands contributing to “continued, consistent outperformance” of the market, the company said.

“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,” the company said.

Chief Executive Phil Urban commented: “These strong results reflect the work we have done 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.”

“Ordinarily we expect a drag on profit in the year of investment due to lost trade during closure and the cost associated with opening the invested business. This year we have been focusing on enhancing the ‘in year’ return of our investment projects and have eliminated profit drag by reducing closure time, more efficient use of resources and setting businesses up for success from the first day of trading,” the company added.

In the first seven weeks of the new financial year, Mitchells & Butlers said like-for-like sales have grown by 1.4%, having “continued to outperform the market in a period of adverse weather”.

The company added: “The market remains challenging with a high level of macro uncertainties, but we will remain focused on maintaining a strong balance sheet and reducing our net debt whilst positioning the business to generate value for our stakeholders.”

Mitchells and Butlers boast a portfolio of brands including Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson’s, O’Neill’s and Ember Inns.