Mitchells & Butlers H1 Pre-tax Profit Rises Despite Lower Revenues

(RTTNews) - Mitchells & Butlers Plc. (MAB.L, MLB), an operator of managed restaurants and pubs, Thursday said its profit before tax for the first half of 2016 rose to 83 million pounds from 75 million pounds in the prior-year period. Earnings per share advanced to 18.4 pence from 14.2 pence.

Adjusted profit before tax was 82 million pounds, compared to 75 million pounds last year. Adjusted earnings per share for the quarter were 15.7 pence, up 9 percent from last year.

Revenue for the period declined 1.5 percent to 1.10 billion pounds from 1.11 billion pounds in the prior year, with lower like-for-like sales only partially offset by new site openings.

Looking ahead, the company said that following a challenging trading period with subdued sales but margin growth, its sales performance in recent weeks has been more encouraging. The company added that it is cognisant of the challenge of future wage cost increases but will continue to execute its plans at pace to build on this performance.

The company's board of directors has approved an interim dividend of 2.5 pence per share which will be paid on 4 July 2016 to shareholders on the register at the close of business on 27 May 2016.