November 27, 2012 / 7:54 AM / 5 years ago

Mitchells & Butlers full-year profit rises

(Reuters) - British pubs and restaurants group Mitchells & Butlers Plc (MAB.L) reported a rise in full-year profit but said that inflationary and regulatory cost pressures would hurt the business in the new financial year.

The owner of All Bar One, Harvester and O‘Neills chains said like-for-like sales in the first eight weeks of the new year were broadly flat.

The company, whose other chains include Toby Carvery and Browns, said the economic environment remained challenging due to ongoing alcohol duty increases, further food price inflation and other costs, along with weak consumer sentiment.

Adjusted profit before tax for the 52 weeks to September 22 rose to 162 million pounds from 156 million pounds last year.

Like-for-like sales increased 2.1 percent, led by food sales.

The company in September said there was “little discernible impact” on sales from the Olympics, although some businesses located near Games venues did benefit.

Smaller rivals Young & Co’s Brewery (YNGa.L) and Fuller Smith Turner (FSTA.L) last week said sales during the Queen’s Diamond Jubilee and the Olympics helped overcome a rain-soaked first quarter.

Shares in Mitchells & Butlers, which is majority owned by billionaire currency trader Joe Lewis who also owns Premier League football club Tottenham Hotspur, closed at 331 pence on the London Stock Exchange on Monday.

Reporting by Karen Rebelo in Bangalore; Editing by Maju Samuel

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