Mitchells & Butlers plc (MAB.L,MLB), an operator of managed restaurants and pubs, reported Tuesday that its total like-for-like sales for seven weeks to September 12 dropped 0.7 percent. Looking ahead, the company expects fiscal 2015 results to show growth on last year although to be at the bottom end of the range of current market expectations, on the basis of recent trading.
Mitchells & Butlers also announced the appointment of Phil Urban as Chief Executive, from September 27. Mitchells & Butlers shares were losing around 4 percent in the morning trade in London.
In its pre-close trading update, the company noted that its seven week like-for-like sales from food business declined 0.1 percent and from drink business fell 1.4 percent.
Total sales growth for the 50 weeks to September 12 was 7 percent, with like-for-like sales growth of 1 percent boosted by growth in food business.
The company noted that the UK eating and drinking out market has been subdued in the summer leading to a slight slowdown in the rate of sales growth, exacerbated by the wet weather. Despite this slow market seen in the past weeks, the company remains confident to meet the challenges of high consumer expectations and forthcoming cost pressures.
Regarding the Chief Executive appointment, Mitchells & Butlers noted that Urban succeeds Alistair Darby, who will step down as Chief Executive on September 26, and will retire from the Board and leave the company on the date.
Urban joined Mitchells & Butlers in January 2015 as Chief Operating Officer, and was previously Managing Director at Grosvenor Casinos, a division of Rank Group and Chairman of the National Casino Forum. Prior to that, he was Managing Director for Whitbread's Pub Restaurant division.
In London, Mitchells & Butlers shares were trading at 338.20 pence, down 3.76 percent.
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