Pubs owner Mitchells and Butlers said like-for-like (LFL) sales increased three per cent in the nine weeks to September 15th as the Olympic and Paralympic Games had little impact on overall sales.

Total LFL sales for the 51 weeks to September rose 2.1% with food sales up 2.9% and drink sales up 1.4%.

Mitchells & Butlers said some businesses located near Games venues did benefit from increased number of visitors.

Executive Chairman Bob Ivell commented: "Trading has held up well over the summer despite the generally adverse weather. Our business transformation programme remains on track, driving a sharp focus on enhanced guest service and increased cost efficiency."

This is what credit analysts at Royal Bank of Scotland are saying: "With net debt to EBITDA of the group at a relatively modest (for a pub co) 4.6x and good coverage over covenants we continue to consider that bonds across the capital structure feel cheap versus other property deals; however there is little catalyst in the short term for material spread tightening."


CJ

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