British pub firms post increase in profits

British pub groups Marston’s and Mitchells & Butlers have both reported a rise in first-half profits, helped by new openings and demand for casual dining.

Marston’s said underlying pretax profit for the six months to April 4th grew 2 per cent to £29.6 million, despite increased pension costs and disposals.

Total group revenue rose 3 per cent to £384.5 million, with like-for-like sales up 1.5 per cent at its food-led, family focused managed pubs.

Rivals Mitchells & Butlers, whose pubs include Harvester and Toby Carvery, posted a 4.1 per cent rise in first half adjusted pretax profit to £75 million, in line with expectations, on total revenue up almost 10 per cent to £1.1 billion.

Underlying sales rose 1.7 per cent, with new pubs and restaurants helping to generate the rest of the growth. – (Reuters)