Mitchells and Butlers 16 weeks LFL up 4 pct, future demand uncertain UPDATE |
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Thu, 01 Feb 2007 08:57
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(Adds detail from statement)LONDON (AFX) - Pub group Mitchells & Butlers PLC (M&B) said like-for-like sales for the 16 weeks to Jan 20 were up 4 pct, rising 2.4 pct on an un-invested basis, in line with company expectations.The company said pubs in residential areas continued to trade strongly, with like-for-like sales growth of 4.6 pct for the first 16 weeks. Local pubs traded well, said the company, while High Street pubs registered like-for-like sales growth of 2.7 pct, with London performing particularly well.The operator of the Harvester and All Bar One chains said food sales were up 7.2 pct within that period and drinks sales up 2.9 pct, against an on-trade market which saw drinks decline 4.1 pct in the quarter to December. Food and drinks prices were 3 pct higher than the previous year.In Scotland, which represents 5 pct of the estate, it said overall like-for-like sales were up 0.4 pct, with food up 5 pct, but drinks down 2 pct.The company said it is well placed to attract new customers who do not currently use pubs to eat out when the English smoking ban comes in this July, and called the strong food sales growth in the first 16 weeks of this year have ry encouraging'.The company said it is making 'excellent progress' on the conversion of former Whitbread pubs, with sales uplifts in line with expectations and on target to be at least 30 pct above the level at which the estate was acquired.Total retail sales were 12 pct ahead of last year but M&B said, given the recent interest rate rise, that it is uncertain whether consumer demand will continue at current levels.M&B confirmed the board is still 'rigorously evaluating the risks and rewards of a REIT structure' and will update shareholders by the interim results announcement in May.newsdesk@afxnews.comsjm/roCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Mitchells and Butlers 16 weeks LFL sales up 4 pct, future demand uncertain 