M&B reports 2.7% like-for-like sales growth

The group said its business transformation programme was underway and described its operational performance as resilient.

Total revenue for the six months came in at £969m, with operating profit up 1.5% at £138m before exceptional items. Net operating margin was down 0.7 percentage points as a result of inflationary cost increases in energy and food, M&B added.

Exceptional operating costs of £20m included £14m of business and systems restructuring costs, which would deliver annualised savings of £10m, it said. As a result profit before tax was down £1m to £42m.

During the period, M&B, which operates brands including Harvester, Toby, Browns, Sizzling and Crown Carvery, opened 35 new sites and converted another seven to new brands, with expansionary capex of £42m. The 200th Harvester had opened, a major milestone for tits biggest brand, it said.

"Our business transformation programme is underway, simplifying our support functions and sharpening focus on guest service throughout all areas of the business," said executive chairman Bob Ivell.

IT infrastructure had been upgraded, laying the foundation for technological enhancements including wi-fi rollout and a faster menu development cycle. Service quality had also been enhanced through increased investment in site-level operations
 
Ivell added: “We have remained firmly on the front foot with a relentless focus on actions that will drive the medium and long term success of the business.  We are continuing to deliver a resilient operating performance, maintaining the roll-out of our industry-leading brands and progressing our major business change programme. 

On the thorny issue of appointing a new CEO, he said: "I am pleased with the progress being made to appoint a new CEO and further non-executive directors and look forward to being able to make an announcement at the appropriate time."

• Coffer Peach Business Tracker results showed a -2% fall in like-for-likes for April across the whole managed pub and restaurant sector. Peach figures also show average like-for-like growth for the 12 months to date across the whole sector running at 1.8%.

The full detailed M&B results announcement can be downloaded at www.mbplc.com/