Mitchells & Butlers PLC (LON:MAB) said it is confident that profits will rebound once full restrictions are eased, based on demand seen since the pubs started to reopen in April.
The Harvester and All Bar One owner said nearly all of its outlets had now reopened, with outdoor sales in the five weeks since 12 April running at about 37% below total pre-COVID levels.
“We … are confident, given the demand that we have seen so far since re-openings, that we will see strong consumer confidence in our brands supporting a rebound to profitability and cash generation once restrictions are fully eased,” the group said in a statement.
Mitchells & Butlers posted a loss of £200mln in the half-year to 10 April 2021, as revenues tumbled to £219mln from £1.04bn a year earlier.
At the start of the period, the group had 17% of its estate opened and traded under restrictions for 14 weeks.
Phil Urban, chief executive, said: "M&B was a high performing business coming into the pandemic. With the support of our main stakeholders, we are now well placed to emerge in a strong competitive position.”
Net debt at the end of the period was £2bn, including lease liabilities, with the group raising £351mln through an open offer in February.
Cash and undrawn loans were £291mln at the end of the period.