Mitchells & Butlers hit by wet weather blues

Mitchells & Butlers on Thursday became the latest pub chain to warn of challenging summer trading, with sales hurt by Britain’s soggy weather.

The owner the All Bar One, Toby Carvery and O’Neills brands, said drink sales at pubs open more than a year fell 1.2% in the 8 weeks to September 16.

It blamed poor weather compared to a sunny period last year, and said sales were strong in early summer.

The update comes a fortnight after rival Greene King blamed poor weather since the second half of July for a weaker performance.

Mitchells & Butlers still managed to boost full-year like-for-like sales by 1.8%, but it said that margins for the full year will be below last year due to inflationary cost pressures.

Shares in the FTSE 250 group fell 5.5p, or 2.24%, to 240.09p.

Chief executive Phil Urban said the company is working hard to mitigate cost headwinds such as higher wages and rates bills.

The firm sold a number of sites in the period and is on track to meet full-year forecasts.