Insider Media Limited

Birmingham pubco Mitchells & Butlers recorded a rise in like-for-like sales of 6.5 per cent for the nine weeks to 21 January as a result of improved weather over the Christmas period.

However, trading in January has been more subdued, but consistent with the underlying like-for-like sales trend first noted in July last year of about 1 per cent growth, the group told the Stock Exchange.

In the first 17 weeks of the financial year to 21 January like-for-like sales rose by 4.4 per cent, with food up 5.1 per cent and drink up 4.3 per cent, compared with the same period 12 months ago.

Executive chairman Bob Ivell said: "These results reflect a successful Christmas sales performance. Although assisted by better weather, they show that customers are still keen to treat themselves even in a difficult economic environment.

"I am encouraged by the progress that we have already made in a number of areas to refocus the operations and improve the guest experience. This gives me confidence in our ability to successfully develop and grow the business in the year ahead."

Plans to buy more pubs continue with a good pipeline of site available for new opening this year, Mitchells & Butler added.

Net debt in the business is unchanged at about £1.9bn.

Good progress is being made to appoint a new chief executive and additional non-executive directors, the group said.

Interim chief executive and director Jeremy Blood stepped down from his position in October. Ivell took on executive duties until an appointment is made.