Mitchells & Butlers suffers £200m loss as lockdown restrictions strangle pub group
Sales at Mitchells & Butlers tumbled 79 per cent in the six months to 10 April, as coronavirus-led restrictions decimated operations at the pub group.
The group, which owns Toby Carvery and All Bar One, recorded a loss before tax of £200m in the first half of its financial year.
Revenue at the business fell to just £219m for the period, down from nearly £1.04bn during H1 in its previous financial year.
The embattled pub group was so badly hit by the effects of Covid-19 restrictions it was forced to raise £350m in emergency funding after shareholders took control.
An hour after the market open, Mitchells & Butlers share price had fallen 2.45 per cent.
Despite the challenging period, CEO Phil Urban said the group was well placed to emerge from the crisis in a competitive position, adding: “[We] look forward to the removal of remaining trading restrictions in June such that the business is able to return again to full and sustainable profitability.”
The six months were dominated by the effects of Covid-19, with various restrictions taking place during the time including the introduction of regional tiers and eventually a full national lockdown that saw all pubs being shut introduced during the timeframe.
More than 99 per cent of Mitchells & Butlers staff were placed on furlough during closures.