M&B offers food for thought

Published on Friday 27 January 2012 00:00

Restaurants and pubs group Mitchells & Butlers (M&B) yesterday reported strong trading over Christmas and New Year as food sales boosted takings.

The company, whose estate in Scotland includes the Sheep Heid Inn in Edinburgh and Glasgow’s Horseshoe Bar, also said it was making progress on key board appointments amid concerns over a lack of independent non-executive directors.

M&B, whose chains include Harvester, Toby Carvery and All Bar One, said sales at restaurants and pubs open more than a year grew 4.4 per cent in the 17 weeks to 21 January, ahead of analysts’ expectations.

Milder weather over the Christmas and New Year period compared with 2010 as well as strong demand for casual dining were among the factors.

Last year M&B, which has net debt of about £1.9 billion, was the subject of two rejected bid approaches from its biggest shareholder, billionaire currency trader Joe Lewis.

M&B has gone through six chairmen over the past two years and has been without a permanent chief executive since Adam Fowle departed last March.

Industry veteran Bob Ivell, a former managing director of Scottish & Newcastle’s managed pubs division, is currently acting as executive chairman and leading the search for a chief executive.

The firm said “good progress” was being made to appoint a new chief executive and additional non-executive directors. Shares rose by 6.4p to 265p.

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