Pubs and restaurants operator Mitchells & Butlers Plc (MAB.L,MLB) reported Tuesday a decline in its fiscal 2014 profit due to higher charges. Revenues increased from last year on like-for-like sales growth. The company added that its like-for-like sales in the first eight weeks of fiscal 2015 grew 2.4 percent.
Looking ahead, Chief Executive Alistair Darby said, "The business is gathering momentum and we have made an encouraging start to the year. We expect to benefit further from these investments during this financial year."
The company added that it continues to operate in a challenging and competitive market, yet it is making real progress and have confidence in future success.
For the year 2014, pre-tax profit decreased to 123 million pounds from 142 million pounds in the previous year. The prior-year results have been restated to reflect the adoption of IAS 19 (revised) and inclusion of a pensions finance charge.
The latest results included a 37 million pounds charge relating to the net movement in the property portfolio and a 12 million pounds charge for acquisition and integration costs relating to the Orchid. The prior year's results included 29 million pounds charge relating to the net movement in the property portfolio.
Excluding these items, pretax profit was 172 million pounds, compared with 171 million pounds a year ago.
Profit, after tax, totaled 93 million pounds, or 22.5 pence per share, down from 128 million pounds, or 31 pence per share, last year. Adjusted earnings per share was 32.4 pence, compared with 32 pence last year.
Earnings before interest, tax, depreciation and amortisation or EBITDA dropped to 410 million pounds from last year's 420 million pounds.
Total revenues grew 4 percent to 1.97 billion pounds from 1.89 billion pounds a year earlier. The company attributed the increase in revenues to both growth in like-for-like sales and the contribution of new pubs and restaurants, including 15 weeks of trading from the 173 outlets acquired from Orchid.
Like-for-like sales increased 0.6 percent with growth from both food and drink sales.
According to the firm, increase in food sales was driven by volume growth of 0.9 percent, partially offset by a small reduction in average spend per head. Drink sales growth, by contrast, resulted from average spend growth of 1.6 percent, despite volume decline of 1.1 percent.
In London, Mitchells & Butlers shares were gaining 0.86 percent, and trading at 352 pence.
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