Mitchells and Butler's profits rise 6.9%

December 16, 2006: Mitchells & Butlers has revealed operating profits up by 6.9% to £309 million in its annual report and review. Revenue was up 5.5% to £1,720 million.

Earlier in the year the company rejected a pre-conditional proposal from a consortium to acquire its entire equity for 550p a share. This was based on the board’s belief that the proposal materially under-valued the company and its assets.

"All of the actions and achievements this year have been underpinned by the board’s absolute commitment to the creation and delivery of value to
shareholders," said chairman Roger Carr.

"In Mitchells & Butlers’ brief history, this principle has been pivotal to all our decisions. I can assure you that it will remain firmly so in the future."

Chief executive Tim Clarke pointed out that key social changes driving the growth trend in the eating out market are the increase in the number of women in employment and the rising number of single households, where people may not have the time or the inclination to cook, and the increasing number of recreational visits by the growing population of retired people.

At the same time the decline of manual labour in the manufacturing industry has been the major cause of the fall in habitual pub visiting to drink beer.