Mitchells & Butlers PLC on Wednesday said it swung to a half-year profit as more people socialised in their pubs and restaurants following the easing of Covid restrictions.

Pretax profit for the 28 weeks ended April 9 stood at £57 million versus a loss of £200 million a year ago. Revenue surged to to £1.16 billion from £219 million.

Revenue however was 2.2% lower than in the first half of 2019, the Birmingham-based operator of pubs, bars and restaurants explained. Looking ahead, the firm is cautious due to surging inflation in the UK.

On Wednesday, consumer prices were up 2.5% in April versus the prior month, accelerating from March’s 1.1% rise. Annually, consumer prices jumped 9.0%, accelerating from March’s 7.0% rise.

‘The trading environment remains difficult. Cost headwinds present a significant challenge to the industry, particularly those costs related to utilities, wages and food. In light of this, our teams have refocused their efforts on driving further efficiency and productivity gains through our Ignite programme.

‘In parallel, we are pushing forward with our capital investment plan which we are pleased to see delivering strong sales uplifts,’ commented Chief Executive Phil Urban in a press release.

Managing cost inflation and growing the business back to and beyond pre-Covid-19 trading levels is one of the company’s strategic priorities, Mitchells & Butlers added. The outlook remains highly uncertain, it said.

The firm will not pay external dividends or undertake any share buybacks or repurchase bond debt until at least January 2023, it said.

Mitchells & Butlers shares were 1.4% lower at 211.00 pence each in London on Wednesday morning.

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