Profits slide for UK pubs group

Shares in the British pub group in which Irish financiers John Magnier and JP McManus hold a 23% stake fell by as much as 12% on the back of falling profits and a decision not to award shareholders an interim dividend next year, writes Geoff Percival.

Mitchells and Butlers — which runs such chains as O’Neill’s, Harvester and All Bar One — reported a 2.6% rise in total revenue, for the 12 months to the end of September, to £2.18bn (€2.44bn). Like-for-like sales were up by 1.8%, compared to a 0.8% drop the previous year.

However, adjusted pre-tax profits were down 0.6%, for the year, at £183m and adjusted operating profits fell 3.1% to £314m, mainly due to inflationary cost pressures.