Mitchells & Butler (LON: MAB) is the highest riser in the FTSE 250 index following interim figures and an upgrading of full year expectations. The pubs and bars operator is outperforming the market. The share price is 13.4% ahead at 301.5p, which values the company at £1.58bn.
Like-for-like sales growth was 7% in the six months to April 2024. Revenues improved from £1.28bn to £1.4bn. Operating margin increased from 7.8% to 11.7%, as cost inflation eased, and earnings jumped from 5.5p/share to 13.6p/share.
There was a £137m cash inflow before bond amortisation and net debt fell from £1.19bn to £1.04bn on 13 April 2024. That was before the acquisition of Pesto Restaurants, which offer Italian tapas, in May. The cost will be up to £15m.
There was a slowing in like-for-like growth in the second quarter, but it remained much better than the sector. In the most recent four weeks, like-for-like growth has been 5.3%.
