Pub chain has strong festive sales after weather hits trade

MITCHELLS & Butlers, the pub giant which owns Glasgow’s famous Horseshoe Bar, has reported strong Christmas trading, but pointed to a wider slowdown linked to bad weather.

The pub group behind the All Bar One chain said like-forlike sales grew 3.9 per cent in the core three-week festive trading period to January 6.

Christmas Day saw record takings, with like-for-like sales growth of 5.4 per cent and 225,000 meals sold.

But the firm said that in the seven weeks leading up to December, comparable sales fell by 1.6 per cent after it was impacted by adverse weather.

Boss Phil Urban said: “We are pleased to have delivered continued strong trading results over the important festive period in the face of difficult weather for many of our guests, indicating the attractiveness of our offers in a competitive market.”

In November, Mitchells saw its shares plunge after warning it could scrap its next shareholder dividend payout on the back of lower profits and said it faced further risks amid Brexit uncertainty.

The pub group reported a fall in pre-tax profits to

£77 million for the year to September 30, compared to £94m the previous year.

It is working to offset a spike in buying costs on the back of the Brexit-hit pound, saying it expects those pressures to continue into the next financial year.