M&B: Trading strong this year
The group, which controls about 2,000 pubs in Britain across a number of well-known chains including All Bar One and O’Neill’s, said – via a trading statement – that total sales in the 14 weeks to the beginning of January were up by 3.3%, on a year-on-year basis.
Sales in its high street pubs were up by 1.6% over the same time frame and net margins were up by 1.5% as a result of lower energy costs, pricing changes and reduced food cost inflation.
Management added that the group continues to generate strong operational cash-flows, which have been supported by £15m (€16.7m) in asset disposals in the last year. However, the group added management remains “cautious” on the outlook for consumer spending, “especially in the second half of the year”.
“However, M&B’s leading brands and proven operational ability mean we can face the future with confidence,” management said.
M&B has been the subject of recent boardroom unrest over what the board has claimed to be an attempt by some shareholders to force control of the business.
While the two Irish financiers own 17.5% of the business, through their Elpida investment vehicle; only British financier Joe Lewis was mentioned by name, but denied any claim made by M&B.
