Mitchells & Butlers PLC on Wednesday predicted a full-year outturn at the top end of consensus, after reporting interim growth.

The Birmingham, England-based operator of restaurants and pubs, including Harvester and All Bar One, said revenue in the half year ended April 13 rose 8.9% to £1.40 billion from £1.28 billion a year prior.

Pretax profit jumped to £108 million from £40 million.

Mitchells said: ‘Our capital programme continues to deliver significant value by improving the competitive position of our pubs and restaurants within their local markets. Over the first half, we have completed 85 investment projects comprising 78 remodels, 4 conversions and 3 acquisitions. We are continuing to see strong performances from our investment projects and remain focused on reestablishing the target 7-year investment cycle which was interrupted by Covid-19.’

Basic earnings per share surged to 13.6 pence from 5.4p.

‘Continued like-for-like sales outperformance against the market coupled with easing inflationary costs and focus on efficiencies has resulted in very strong profit recovery for the period,’ Chief Executive Officer Phil Urban said.

‘We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving further cost efficiencies and increased sales. We have confidence that continued focus on effective delivery of our strategic priorities will generate further value from our enviable estate portfolio and customer offers, enabling us to build further momentum throughout the year, with a strong foundation for long term outperformance.’

The firm predicted full-year results at the ‘top end of consensus’. It said it expected further momentum for further progress going forward into financial year 2025.

Mitchells expects cost headwinds at a total of £55 million in the current financial year ending in late September, slightly below what it previously anticipated.

Mitchells & Butlers shares rose 13% to 301.60 pence each on Wednesday morning in London.

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