Mitchells & Butlers has announced its more recent financial report.
The group, which owns All Bar One, Harvester and Toby Carvery, found revenues to fall from £1.47bn to £1.06bn.
The group has also posted a loss, which has been reduced from last year’s loss of £123m to £42m. Sales at the group have stayed below pre-pandemic levels.
“Despite the inevitable challenges faced by our business over the past year we are now well positioned to regain the momentum previously built as we come out of the pandemic,” said chief executive Phil Urban.
“The trading environment remains challenging and cost headwinds continue to put pressure on the sector.”
Analysts also highlighted the difficulties Mitchells had experienced during the pandemic and disappointing activity since restrictions have lifted.
“The past few years have been difficult for Mitchells & Butlers, but it finallyreturned to profitability during its second half period. However, it does look like the business is running very hard just to achieve the smallest gains,” said Russ Mould, investment director at AJ Bell.
“On a full year basis, the results are ugly reading as more than £1 billion went through its tills but it still lost money as the period included the lockdowns that started in November 2020 and January 2021.
“It is now making some progress on sales growth, but the amount is tiny, and the outlook is far from favourable.”
“Pub and restaurant operators traditionally thrive in December from Christmas parties. Nervousness on behalf of many companies could see reduced staff party volumes this festive season, particularly as Covid rates are shooting up. Managers won’t want to risk employees getting ill and a lot of people still feel uneasy about mixing in a crowded room.”
